Commissioner approves rate reduction to save earthquake policyholders more than $16 million
News: 2018 Press Release
SACRAMENTO, Calif. — Insurance Commissioner Dave Jones has approved a rate reduction for California Earthquake Authority (CEA) residential earthquake policyholders that will bring millions of dollars in premium savings for tens of thousands of homeowners and renters in California.
“The department’s Rate Regulation Branch staff reviewed CEA’s rate filing and determined that the proposed rates should be lowered,” said Insurance Commissioner Dave Jones. “Department staff worked with CEA staff to arrive at approved rates that will result in an estimated total premium savings of $16.3 million to California consumers over a three-year period. Once again, Californians have benefited from the insurance commissioner's rate regulation authority."
The initial proposal in CEA’s rate filing was for a 0.4 percent increase. However, following the department’s actuarial review and recommendations, CEA submitted an amended filing, requesting a rate reduction of 1.7 percent. The proposed effective date is July 1, 2019.
The rate reduction is for CEA’s residential earthquake policy that can cover your home up to a certain amount, personal items in your home, such as furniture, TVs, and computers, and temporary and extra costs to live somewhere else while your area is evacuated or your home is being repaired.
Since Commissioner Jones took office in 2011, the department has reviewed more than 54,000 rate filings and saved consumers and businesses over $3.4 billion through rate reductions. Whether a particular policyholder as a result of this rate filing approval receives a rate reduction and how much, depends on their individual policy and CEA territory.
To make a home more earthquake resistant, the department encourages California homeowners to consider retrofitting their home. A verified retrofit may also allow homeowners to receive additional discounts on their homeowners and earthquake insurance policies. The California Residential Mitigation Program (CRMP) was established in 2011 to help Californians strengthen their homes against damage from earthquakes. CRMP established Earthquake Brace + Bolt to offer up to $3,000 to help California homeowners retrofit their house to reduce potential damage from earthquakes.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.