a public instrumentality of the state€¦ · governing board: governor insurance commissioner...
TRANSCRIPT
A Public Instrumentality of the State
CALIFORNIA:MANDATORY OFFER LAW
Earthquake coverage is excludedfrom homeowners insurance policy
However, insurance companies are required to offer a separate earthquake insurance policy at time of homeowner policy sale.
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CEA: ESTABLISHED IN THE WAKE OF NORTHRIDGE EQJanuary 17, 1994
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Total Property Damage $40 Billion
Residential $20 Billion
1994: NORTHRIDGE EARTHQUAKE
AftermathMost insurance companies stopped writing Homeowners insurance
Insured Residential $10 Billion
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JOE PUGLIESE/LOS ANGELES TIMES
AG
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GOVERNING BOARD: GovernorInsurance CommissionerState Treasurer
A not-for-profit provider of residential earthquake insurancePUBLICLY MANAGED • PRIVATELY FINANCED
PRIVATELY FINANCED:
MISSION:
Non Voting: Assembly Speaker and Senate Rules Chair
1,050,000 Policyholders
EducateMitigateInsure
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OVER THE LAST 20 YEARS…
CEA has lowered its rates by 55%
Housing reconstruction costs have increased by 170%...
Without these rate reductions, the average CEA premium would be more than twice as high as it is today.
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“Mini-Policy” Today’s CEA options
Structure Replacement Cost Replacement Cost
Personal Property Coverage $5,000 Up to $200,000
Deductible 15% 5%, 10%, 15%,20% & 25%
Loss of Use Coverageadditional living expenses
$1,500 Up to $100,000
Mitigation Discount 0% 5%, 10% & 20%
TODAY: A NEW CEAProduct Enhancements
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EarthquakeAuthority.comPremium Calculator
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EarthquakeAuthority.comPremium Calculator
NorthridgeExample
ZIP: 91326
Year built: 1982
Insured Value: $546,000
Number of Stories: 1
Foundation: Slab
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EarthquakeAuthority.comPremium Calculator
Deductible: 15%
Premium: $793/year
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EarthquakeAuthority.comPremium Calculator
Deductible: 5%
Premium: $1,420/year
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EarthquakeAuthority.comPremium Calculator
Deductible: 25%
Premium: $538/year
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EQ INSURANCE TAKE-UP NOW 13.2%
2006–2015 average annual increase: 6,700
2016: 52,000
2017: 90,000
2018: 29,000Jan.-Nov.
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CEA Policies in Force
EarthquakeBraceBolt.com
7,000+ Homes Retrofitted since launch in 201415
EarthquakeBraceBolt.com
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August 2014, Napa, California
JANIELE MAFFEI
EarthquakeBraceBolt.com
• Jointly managed by CEA and Cal OES
• Launched in 2014
• Reimburse up to $3,000
• Pre-1979 houses
• Code-compliant retrofit
• Sill plate anchorage
• Cripple wall bracing
• Water heater bracing
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EarthquakeBraceBolt.com