STATE : Cheap Quake Policies Proposed

Basic earthquake insurance providing coverage of $15,000 for Californians living in high-risk areas, at an added cost to regular homeowner insurance policies of $12 to $60 a year, was proposed by Gov. George Deukmejian today.

The proposed coverage would be financed by a state pool raised by mandatory surcharges on all homeowner insurance policies, the governor said.

The proposal would provide thousands of dollars of protection at a low cost to all homeowners and renters in the risk areas, he said.

“I’m sure that most California homeowners who live in our state’s earthquake-prone areas would agree that having earthquake insurance is a wise and prudent idea,” Deukmejian said. “Yet only about 20% of the homes in our state now have such insurance.”