California Authority Approves Earthquake Insurance Rate Reduction

The California Earthquake Authority has voted to reduce earthquake insurance premiums by 22 percent, in hopes that it will encourage more homeowners to purchase or renew earthquake coverage. The proposal will now go before the state’s Department of Insurance for review. If the department approves, the rate decrease would go into effect in 2006 — the first rate decrease in six years, according to The Sacramento Bee.

Gov. Arnold Schwarzenneger and State Treasurer Phil Angelides, as members of the authority, voted in favor of the proposal. Insurance Commissioner John Garamendi refrained from voting because his department must review the plan, said his spokesman Norman Williams.