Insurance Rate Boost Nothing to Cheer About

Regarding “Here’s the Good News About Your Insurance,” James Flanigan, April 3:

Last week we got a renewal notice for earthquake insurance. Our premium rose more than 100% from $600 to $1,243 a year.

The declaration page of the policy states: “This policy contains no guarantee that you will be able to rebuild your dwelling or replace your personal property.” It also includes a 15% deductible ($78,000).

When I questioned the insurance company (Safeco) and the Department of Insurance, I was told that two new faults had been discovered, and therefore the cost is increasing in those areas.

The Insurance Department representative did not think the increase was excessive. I thought the department’s job was to work to help keep rates reasonable, not to give a rubber-stamp approval to any increase requested by insurers.

Also, our regular homeowners insurance increased more than 30%. Our premiums for homeowners and earthquake insurance on a 3,000-square-foot house now total more than $3,300 a year.

Judy Meyer

Fountain Valley