Officials Oppose Earthquake Insurance Rates

The Los Angeles County Board of Supervisors voted unanimously Tuesday to send a letter to state Insurance Commissioner Charles Quackenbush opposing new earthquake insurance rates that would hit San Fernando Valley residents particularly hard.

The motion, introduced by Supervisor Mike Antonovich, was approved by the supervisors without discussion.

“Fairness rather than political manipulation should be the basis for rate setting,” Antonovich’s motion said. “Northern California, where they have more earthquakes, should not be allowed to have Southern California bear the brunt of the insurance costs.”

Earlier this month, the California Earthquake Authority approved an insurance rate structure that led to angry reactions from residents in both Northern and Southern California, who complained that the rates appeared to be arbitrary.

For instance, rates in most of the Valley would be 2 1/2 times more than those in Sylmar and San Fernando--areas that suffered significant damage during the 1971 Sylmar and 1994 Northridge quakes.

And Palmdale, which sits astride the San Andreas fault, would also pay less than most San Fernando Valley areas.

In the San Francisco Bay Area, residents in all ZIP Codes would pay the same insurance rate, even though some areas are at risk of soil liquefaction while others are not.

The new rates could take effect as early as Dec. 1 unless Quackenbush decides to modify the rates. A spokesman has said that Quackenbush plans to review the new rate structure.