Unlike flood insurance, though, which is required in order to obtain mortgages for properties in flood-prone areas, lenders do not require homeowners to buy
earthquake insurance, AIR notes.
"A unique opportunity exists in China today: to be the first country ever to develop a new
earthquake insurance system without the undesired incentive of a major catastrophe," according to a 2005 Risk Management Solutions report.
Nonlife insurers now cover 100% of compulsory automobile liability insurance and
earthquake insurance, but 90% in case of voluntary automobile insurance and fire insurance, if they go bankrupt.
In 2017, Palomar Specialty partnered with AAA Club Alliance to offer (https://www.insurancejournal.com/news/southcentral/2017/05/08/450275.htm) residential
earthquake insurance, beginning in Oklahoma(https://www.insurancejournal.com/news/southcentral/2017/05/08/450275.htm) .It (https://www.insurancejournal.com/news/west/2016/08/10/422953.htm) launched a wholly owned subsidiary, Prospect General Insurance Agency in 2016, and Prospect later that year launched (https://www.insurancejournal.com/news/national/2016/10/05/428285.htm) a real estate investor insurance program.
Earthquake insurance is typically excluded under standard homeowners policies; most buyers in high-risk states in the Pacific Northwest purchase it as endorsement, and in California, from the California Earthquake Authority (CEA).
The plaintiffs sued the companies after they rejected to pay out fire insurance money saying they bore no responsibility because the fire was caused by the quake and the plaintiffs had not purchased
earthquake insurance.
Earthquake insurance underwriter SIU Managers is now EQ One.
"Looking into
earthquake insurance after your home or businesses has sustained damage resulting from an earthquake will do little good to help you recover," Insurance Commissioner John D.
In July 2007, during congressional hearings on all-perils insurance coverage, Kansas Insurance Commissioner Sandy Praeger, in her testimony for the National Association of Insurance Commissioners, estimated that the take-up rates for optional (residential)
earthquake insurance in California had fallen to about 12% or less and that the same rate "is frequently suggested to be true in the earthquake areas in the Midwest's New Madrid area and along the Eastern Seaboard's seismically active areas." Top 5 Group Writers * of U.S.