SAN DIEGO — The earthquake that rattled Southern California this week was a gentle reminder that not many Californians, and not may San Diegans, have earthquake insurance. Only twelve percent of homeowners are insured.
This could spell trouble when the big one actually arrives. But there are reasons why so many people have chosen not to be covered.
The epicenter of the earthquake felt in San Diego on Sunday was in rural Baja California. And it did some structural damage in Mexicali, Calexico and El Centro. But it could have been much worse.
“California homeowners, in this most recent event, basically dodged the bullet,” said Glenn Pomeroy, CEO of the California Earthquake Authority, which is a state-managed non-profit that provides 70 percent of the earthquake insurance in California.
“Let’s say the 7.2 that happened on Sunday happened under Los Angeles. We would see massive destruction. Homes destroyed. Infrastructure badly damaged,” Pomeroy said.
The California Legislature created the earthquake authority after the costly Northridge Earthquake in 1994 drove most private insurance companies out of the temblor business. Pomeroy said the authority has the ability to cover billions of dollars worth of claims.
But property owners won’t get anything if they don’t purchase policies.
Pomeroy points out that the typical homeowner’s insurance policy explicitly rules out coverage for earthquake damage. He says many homeowners don’t realize this, or they believe federal disaster aid will come to their rescue in the event of a big earthquake.
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