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Regulator approves statewide rate reduction and new features for Earthquake Authority policies

News: 2015 Press Release

For Release: May 1, 2015
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Regulator approves statewide rate reduction and new features for Earthquake Authority policies

SACRAMENTO, Calif. -Insurance Commissioner Dave Jones approved a statewide 10 percent rate reduction and new coverage options for California Earthquake Authority policies, effective January 1, 2016.

The expanded deductible choices ranging from 5-25 percent will allow policyholders to customize coverage to better meet their insurance needs. The Earthquake Authority is also offering a new hazard mitigation discount program that will give eligible homeowners a premium discount between 10 and 20 percent for verified retrofitting of their home.

"The Napa quake that struck last year caused millions of dollars in damage to homes and is a stark reminder that earthquakes are a serious hazard in California," said Insurance Commissioner Dave Jones. I'm happy to see the Earthquake Authority is taking steps to encourage more homeowners to retrofit their homes to protect them from the devastating damage earthquakes can cause."

Jones is also taking steps to encourage more Californians to retrofit. He is sponsoring two pieces of legislation to expand the scale and scope of the current brace and bolt assistance program and provide financial assistance to low-income consumers to retrofit.

Approximately 10 percent of homeowners have earthquake coverage through one of the insurers that provides earthquake coverage, which is not included in a standard homeowner policy.

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $289 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance web site at Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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