Homeowner aftershock: Insurers jack up earthquake insurance rates

Updated

Following the devastating earthquakes that hit Chile and Haiti, some insurance companies are hiking rates on earthquake insurance by as much as 200%. A recentLos Angeles Times article reported that California-based GeoVera Insurance Company nearly tripled one customer's premium, from $2,500 to $7,100 a year.

The question is: Are insurers playing on homeowner's fears that an earthquake may devastate their lives, too? Or are they trying to prevent their own financial disaster from occurring?

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