The California Earthquake Authority has asked the Department of Insurance for a rate hike of up to 67 percent for some Californians. This rate hike will increase what some people are paying for earthquake insurance.
There is good news. First, 85 percent of the insureds under the CEA are looking at decreases. Second, John Garamendi, the Department of Insurance commissioner, wants to phase in the rate increase over time so that it will not effect the remaining 15 percent so harshly.
Interestingly, the CEA does not know if it has the authority to raise rates. I have not read the CEA enabling statutes recently, but it would be interesting to see what would happen if someone challenged the rate increase.
For those of you in earthquake country, I still think this insurance is a good, no, great idea!