OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best does not expect the 6.0 earthquake that struck northern California early on Aug. 24, 2014, to result in any rating actions based on insured loss, according to a new Best’s Briefing. The briefing, titled, “Insured Losses In Northern California Earthquake Appear Manageable,” states that due to the magnitude, location and relatively low take-up rate of earthquake insurance, losses are not expected to be significant.
The earthquake, which was centered near Napa and shook the greater San Francisco Bay region, is the largest earthquake in the Bay Area since the magnitude 6.9 Loma Prieta earthquake in 1989. Experts say it is too early to put a firm dollar amount on the damage, although the U.S. Geological Survey said the earthquake’s economic impact is likely more than $1 billion.
Some companies have reported a small number of initial claims after the earthquake, while others expect insureds to absorb the potential damage, if any, given the application of earthquake deductibles as a percentage of insured limits.
To access a complimentary copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=228207.
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