Clearer Explanations of Earthquake Insurance Coming

California homeowners will begin getting clearer explanations of how earthquake insurance works and what it covers under legislation signed by Gov. Jerry Brown.

The governor announced signing AB2064 by Democratic Assemblyman Ken Cooley, of Rancho Cordova, on Thursday.

Cooley’s bill seeks to improve the lackluster participation in California’s earthquake insurance program. Just 10 percent of homeowners have an earthquake policy, and the rate was even lower for homeowners affected by last month’s 6.0-magnitude Napa Valley quake.

The legislation requires that the mandatory offer of earthquake policies that insurers must send homeowners be written in plain language that is easily understood. It takes effect in 2016.

It also requires insurers to annually send homeowners marketing materials that explain the insurance and the role of the California Earthquake Authority.

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