FINANCIAL BURDEN SHIFTED : POLICIES TO COVER LESS WITH HIGHER DEDUCTIBLE.Byline: Deborah Adamson Daily News Staff Writer The California Earthquake Authority Established in September 1996 by the California Legislature, the California Earthquake Authority is a privately funded, publicly managed organization that sells California earthquake insurance policies through participating insurance companies. will guarantee that quake Quake - A string-oriented language designed to support the construction of Modula-3 programs from modules, interfaces and libraries. Written by Stephen Harrison of DEC SRC, 1993. insurance is available, but buyers will get less coverage. Under the state-sponsored program: Insurers would require a 15 percent deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). . Coverage for personal property - contents of the home - would be limited to $5,000. Living expenses would be capped at $3,000. Only the house would be covered - additional structures such as the garage, pool or fences won't be included. ``They've done some things to make it unfriendly to consumers - you get half as much coverage,'' said Bill Ahern, senior policy analyst at Consumers Union in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . ``You better pray that there's not another earthquake.'' Historically, basic earthquake policies have carried a 5 percent to 10 percent deductible and cover 50 percent to 75 percent of the insured amount for loss of personal property, such as furniture and appliances. So if your house is insured for $100,000, you can get at least $50,000 to cover the loss of furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. and other contents of the home. Existing plans have also allowed about 25 percent of the insured amount - the replacement value of the home - to cover living expenses in the event of a catastrophe. Insurers that join the CEA CEA carcinoembryonic antigen. CEA abbr. carcinoembryonic antigen CEA (Carcinoembryonic antigen) plan will adopt its earthquake policy requirements, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the state Department of Insurance in Sacramento. They have to make a decision by Nov. 8. Except for Sylmar and the far eastern section of the Valley, local premium costs will be rising. Government officials say the rates are based on earthquake risks in specific areas. But North Hollywood resident Philip Lipp isn't pleased. His community will have two different rates, depending on their ZIP codes zip code System of postal-zone codes (zip stands for “zone improvement plan”) introduced in the U.S. in 1963 to improve mail delivery and exploit electronic reading and sorting capabilities. . ``As a homeowner, it didn't make me happy,'' said the president of Allwest Mortgage in North Hollywood. ``It smacks of a certain degree of unfairness.'' But the insurance industry says that the CEA plan won't be a big jolt because several carriers in 1995 started tightening plans and offering ``mini-policies.'' Last fall, State Farm raised its deductible for quake insurance policies from 10 percent to 15 percent. SHOPPING WITH CEA Shop around. Not all insurers will join the CEA plan. Ask your insurer for any actions that will lower your premium - such as retrofitting your home, tying down your water heater and others. If you're buying a home, find out if it's on an earthquake fault. Increase the deductible on your homeowners insurance policy to offset increases in your quake coverage. CAPTION(S): Box Box: SHOPPING WITH CEA (see text) |
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