Napa earthquake could cost up to $1 billion


Catastrophe modelling firm Eqecat predicts insured losses of between $500 million and $1 billion from the earthquake that hit Napa, California, on Sunday August 24th, 2014.

The company notes that there is a considerable amount of uncertainty regarding losses at this time, given the unknown extent of BI and contents losses.

Eqecat adds that losses to the wine industry could increase the estimate, with the Napa Valley wine harvest having already begun.

The Insurance Information Institute produced a lower estimate of “well under $1 billion”, but added that the 6.0 magnitude event rivalled the intensity of California’s 1989 and 1994 earthquakes.

According to the California Earthquake Authority, less than 6 percent of homeowners and renters in Napa have earthquake insurance.

Napa, earthquake, Eqecat, insured losses, California

Bermuda Re