Discount on quake insurance from California Earthquake Authority

On January 12, 2007 an article and televised broadcast was released from CBS 5 in San Francisco, CA. It stated the California Earthquake Authority (CEA) was not informing its policyholders they were entitled to refunds. This broadcast also had a customer that said they received a refund. This report was not entirely true. It failed to disclose the details of how the policyholder obtained a refund. A policyholder does have the right to the changed rate the day the request the change, however, this will require the policy to be canceled and re-written. This may have negative ramifications on their homeowners policy. Some carriers require a homeowners policy be canceled and re-written at the same time, and this day and age of carriers reducing risk, they may refuse to re-write a new policy, or have such a drastic increase in their homeowners policy that it absorbed some if not all of the saving on the Earthquake policy.

As for the refund the person received, well if he canceled his previous policy the refund would have been for the pro-rated policy from the time it was canceled to when it would renew. This change only affects policyholders of CEA policies and not all earthquake policies since the CEA is not the only provider of earthquake insurance in the State of California.

Watch the televised broadcast by clicking the following link: http://cbs5.com/video/?id=19921@kpix.dayport.com