If You Have Quake Insurance, It's Time for a Review
By John Millrany - April 3, 2001Spring is here, the winds are blowing, and the pollens are bouncing around like a computer screen-saver gone bonkers. Happens every year about this time. Earthquakes, on the other hand, you just never know…
Many Californians may have all but forgotten the huge Northridge temblor of 1994, but our neighbors to the north might feel differently, remembering the 5.2 Yountville/Napa event last September. And in Washington state, the much larger Seattle quake is something else again.
Whatever the timing, both the California Department of Insurance and the California Earthquake Authority are urging homeowners to review their residential insurance policies.
DI Commissioner Harry Low emphasized that if, for instance, you live in the vicinity of the Napa earthquake, your home probably moved or shook during the event. Although the building may look fine on the surface, there may be some hidden damage.
"If you think that there may be damage, you may want to contact your insurer and make a claim so as to protect your rights under the policy," the commissioner’s office stated. "The suggestion applies as well to the owners of commercial property covered by earthquake insurance."
An insurer is obligated under the law to begin any necessary investigation of a claim within 15 days of receiving either oral or written notification of a claim. The insurer should conduct a thorough inspection of the property and communicate its findings to the policyholder. Additional tests should be considered if a thorough inspection of the structure reveals that hidden damage may be present.
"Be sure to communicate any concerns regarding your claim to your insurer." The department maintains a consumer hotline for questions pertaining to the above: 800-927-HELP.
Meanwhile, reports the CEA, since most California residential insurance policies do not cover earthquake damage, separate coverage is necessary. Only 17% of California homeowners have earthquake insurance.
"Many Californians mistakenly think they have earthquake coverage when they obtain home insurance," said David Knowles, CEA chief executive. The agency underwrites two of our three home earthquake policies, maintaining rates to an average of $2.79 per $1,000 of coverage. Rates vary according to local seismic risk and the home’s age and type of construction.
Further information is available on the CEA website, www.earthquakeauthority.com and at 877-797-4330. | 
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