AFTER THE QUAKES : Twin Temblors Jolt Homeowner Interest in Insurance : Disaster: Calls to agents are up, but most carriers have temporary bans on issuing new policies.

Teree Peck, a Palm Springs realtor and California native, never considered buying earthquake insurance. But Monday morning in the wake of two major temblors, she was on the phone with her insurance agent, checking rates and coverage limits.

“I have some friends in the High Desert who were wiped out,” she said. “It makes you think.”

Peck isn’t alone. As the earthquakes and aftershocks continued, hundreds of California homeowners were frantically phoning insurance agents and regulators to inquire about earthquake coverage.

Insurance regulators said they had logged 250 quake-related claims Monday morning and handled an additional 500 inquiries from worried homeowners. Insurance agents also reported an upsurge in interest, particularly among residents living near quake-ravaged areas such as Palm Springs, Big Bear, Riverside and Colton.

Anxious callers were generally stymied in their bids to secure earthquake insurance on Monday, however. Nearly every carrier in the state has slapped a temporary ban on issuing new quake policies.

“We have been very busy answering phones, giving out rates and talking about deductibles,” said Greg Hough, partner at the Palm Springs insurance agency of Weingarten & Hough. “But right now, it is pretty hard to get coverage anywhere.”

Temporary bans on writing new earthquake policies are common after natural disasters. The current spate of earthquake moratoriums range in duration from 10 days at Safeco to 60 days for coverage with Farmers Insurance, according to agents and company spokesmen.

However, many predict that interest in quake coverage will die down by the time the ban is lifted. By then, consumers will have had a chance to look at the cost of coverage, which is “significant” considering the large deductibles and relatively minor chance that consumers will collect, agents say.

Indeed, only about 25% of the state’s residents voluntarily purchase earthquake coverage, even though Californians have suffered through more than 20 major quakes in as many years.

The state recently enacted a basic public earthquake insurance plan, which requires homeowners to pay between $12 and $60 annually for up to $15,000 in coverage. It has a deductible ranging from $1,000 to $3,500, depending on the value of the home. However, state regulators estimate that between 10% and 20% of the state’s homeowners have refused to pay premiums even in the mandatory state program. (Although the state doesn’t penalize residents who refuse to pay, it won’t pay for their quake related losses either, said Kenneth Burt, an insurance department spokesman.)

One reason that quake insurance remains relatively unpopular is its high cost and high deductibles, consumers and agents say.

On average, earthquake insurance costs between $2 and $3 for every $1,000 of coverage, which is only slightly less than what consumers typically pay for a standard homeowners’ policy, which indemnifies an owner against fire, theft and personal liability.

In addition, the coverage generally does not kick in until losses exceed between 5% and 25% of the home’s value. The standard deductible is 10%.

“Given the chance of collecting, the rates are really significant,” said Karen Oxman, an agent at Gelfand, Newman and Wasserman in West Los Angeles and a director of the Independent Insurance Agents and Brokers of Los Angeles.

Consumers seem slightly more interested in buying the coverage now that there is a state program that would help defray the cost of the deductible, Hough added. But still, he estimated that at least half of those who are now calling about coverage will lose their interest by the time the insurance company moratoriums end.

Earthquake Insurance In the aftermath of back-to-back California temblors, many homeowners are making inquiries about insuring their residence against quake damage. Most insurers have imposed temporary moratoriums on new coverage, but are providing basic information about quake insurance:

Cost: Private earthquake insurance rates generally range between $2 and $3 for every $1,000 of coverage. It costs about $300-$450 annually to insure a $150,000 home. The state’s fledgling public insurance plan costs between $12 and $60 annually for up to $15,000 in coverage.

Deductibles: Most private quake policies don’t pay off until losses exceed 10% of the insured amount. On a $150,000 policy, a homeowner would pay the first $15,000 in losses. California’s public insurance plan will pick up some of the slack, but has a deductible ranging from $1,000 to $3,500, depending on the value of the home.

Claims: Earthquake claims are handled like all others--either through insurance agents or directly through the companies that write policies. Those making claims to the state plan can call a special claims hot line at 1-800-640-8887.