Quake Insurance Included in Cal-Vet Loan Program

Cal-Vet--a state home loan program for military veterans that includes low-cost earthquake insurance with a $250 total deductible--has received about 400 earthquake-related claims as of Tuesday, a spokesman said.

About 5,500 veterans with Cal-Vet home loans are in the earthquake-affected parts of Los Angeles and Ventura counties, spokesman Steve Janosco said. There are 52,000 participants in the program statewide, he said.

Earthquake insurance is automatically included with the loans. The current premium is 83 cents per $1,000 worth of coverage. That contrasts with about $2 per $1,000 of coverage for conventional, private earthquake policies. And private policies generally carry a stiff deductible of 10% of policy limits.

Thus, for $100,000 of coverage, a Cal-Vet participant would pay $83 a year and collect on any claim of more than $250. The policies cover only structural damage to a dwelling, not contents. A purchaser of conventional coverage would pay about $200 a year and would collect only on claims beyond $10,000, and there are normally separate deductibles for dwelling and contents.

The state Department of Veterans Affairs, which administers the program, established a toll-free number for earthquake claims: (800) 221-8998.