Quake Insurance Rates May Dip in Some County ZIP Codes

A proposed reduction in statewide earthquake insurance rates is unlikely to bring relief to many of the 15,852 Ventura County residents with policies in the California Earthquake Authority pool.

Many people in the county already pay the highest possible rates under the program--ranging from $4.50 per $1,000 of coverage for homes built since 1979 to $11.40 per $1,000 for mobile-home owners--a rate category unaffected by the reduction.

However, residents of some ZIP codes in Simi Valley, Moorpark, Newbury Park, Thousand Oaks, Westlake, Oak View, Ventura and Ojai will see savings between 7% and 8%. In cold hard cash, savings statewide will average about $62 for a home insured at $173,000.

“The facts won out and that’s what it’s all about,” said Ventura County Supervisor Frank Schillo of the scientific reasoning behind the rate cuts, although he continues to question why much of the county is still classified under the highest possible rate.

“They can’t show me any study that showed how they set the rates in Ventura County,” he added.

The average rate reductions per $1,000 in coverage will range from 37 cents for residents of the 93063 ZIP Code in Simi Valley and the 93015 ZIP Code in Fillmore to 8 cents in the 93001 ZIP Code in Ventura, 93022 in Oak View and 93023 in Ojai.

There are five rates for each ZIP Code, based on the type and age of the building.

For instance, insurance rates would range from a high of $7.95 per $1,000 coverage for mobile homes in Simi Valley and Fillmore to a low of 90 cents per $1,000 for new homes in Ventura, Oak View and Ojai.

Residents in the following ZIP codes and communities will see their rates decrease about 15 cents per $1,000 in coverage: 91320 in Newbury Park, 91360 and 91362 in Thousand Oaks, 91361 in Westlake, 93021 in Moorpark and 93065 in Simi Valley. That translates into a rate as low as $1.60 for new homes and $2.85 for mobile homes per $1,000 in coverage.

Among the big winners are residents of the 91360 ZIP Code in Thousand Oaks. Not only was the area recently reclassified from the highest possible rate, but now residents will also find their rates reduced even further.

The rate reductions are related to a perception of a decreased risk by quake experts in some areas of the state.

* RATE REDUCTIONS

Quake agency CEO suggests statewide rate reductions. A3