California OKs $16.3M Rate Reduction for Earthquake Policyholders

California Insurance Commissioner Dave Jones has approved a rate reduction for California Earthquake Authority residential earthquake policyholders that he says will bring millions of dollars in premium savings for 10s of thousands of homeowners and renters in the state.

Jones and the California Department of Insurance worked with CEA staff to arrive at approved rates that will reportedly result in estimated total premium savings of $16.3 million to California consumers over a three-year period.

The initial proposal in CEA’s rate filing was for a 0.4 percent increase, but a CDI actuarial review and recommendations prompted CEA to submit 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 a home up to a certain amount, personal items and temporary and extra costs to live elsewhere in case of evacuation or while a home is being repaired.

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