Insurance Commissioner Ricardo Lara to send notice to insurers regarding earthquake insurance misinformation
News: 2019 Press Release
LOS ANGELES, Calif. — The recent earthquakes that pummeled neighborhoods in Ridgecrest and Trona in Southern California have led to reports that some insurers and agents may be declining writing earthquake policies in various areas of the state. Insurance Commissioner Ricardo Lara and California Earthquake Authority (CEA) Chief Executive Officer Glenn Pomeroy jointly held a conference call to provide information and dispel confusion before the next big earthquake strikes.
Further, Commissioner Lara announced his intent to issue a notice to insurers to ensure that all agents and brokers selling earthquake insurance are following California law.
“Our first major earthquakes in years have Californians asking if earthquake insurance is right for them. I am concerned about reports that some insurers and agents are telling consumers there is a moratorium, when in fact you can buy earthquake insurance today,” said Commissioner Lara. “While we have Californians’ attention, insurers should not create barriers to homeowners or renters who want to protect their assets from earthquakes.”
“CEA policies can be purchased anywhere in California, at any time, and by anyone who has a home insurance policy with one of our participating insurers,” CEA CEO Glenn Pomeroy said. “However, for new policies purchased after an event, we do not provide coverage for the next 360 hours, or 15 days, for earthquakes that are seismically related to the initial event.”
Commissioner Lara announced that he will issue a notice to insurers advising them that refusing to write CEA earthquake insurance coverage for an existing residential policyholder is not in compliance with state law. Both Commissioner Lara and Mr. Pomeroy believe some insurers may be confusing the 15-day waiting period after a seismic event with an outright moratorium on the purchase of a CEA policy. The Department of Insurance and the CEA will continue to work together to make sure Californians are informed and prepared in the event of another major earthquake.
“If you do not have earthquake insurance, now is the time to look into getting it,” added Commissioner Lara. “A standard homeowners’ policy will not cover earthquake damage. Without specific earthquake coverage, you are responsible for all costs to repair, rebuild or replace your home and personal property.”
The Department of Insurance urges existing CEA customers with damage to begin the claims process by contacting their insurance company or agent. If consumers have questions or concerns about their claim or what their insurer is telling them, they should contact the Department’s Consumer Services Hotline at 800-927-4357.
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Notice of Requirement of CEA Participating Insurance Companies to Write CEA Earthquake Policies
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.