A.M. Best does not expect the 6.0 earthquake that struck northern
California early on Aug. 24, 2014, to result in any rating actions based
on insured loss, according to a new Best's Briefing. The
briefing, titled, "Insured Losses In Northern California Earthquake
Appear Manageable," states that due to the magnitude, location and
relatively low take-up rate of earthquake insurance, losses are not
expected to be significant.
The earthquake, which was centered near Napa and shook the greater San
Francisco Bay region, is the largest earthquake in the Bay Area since
the magnitude 6.9 Loma Prieta earthquake in 1989. Experts say it is too
early to put a firm dollar amount on the damage, although he U.S.
Geological Survey said the earthquake's economic impact is likely more
than $1 billion.
Some companies have reported a small number of initial claims after the
earthquake, while others expect insureds to absorb the potential damage,
if any, given the application of earthquake deductibles as a percentage
of insured limits.
To access a complimentary copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=228207.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS
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