Californians are taking out earthquake insurance on their homes as experts warn that the state is overdue a large seismic shock . The CEA closed out the second quarter of 2017 with over 950,000 earthquake insurance policies in force, having seen growth of 52,000 policies in force in 2016, which is significantly higher than the ten-year average of 7,200 annual policy purchases. The California Earthquake Authority ( CA ) said 800 policies were bought in 2016 , compared to the annual average of 7,200 , lifting the number of active policies to 950,000 . Another 18,804 have been taken out this year alone , despite the fact that mortgage lenders do n't require buyers to have coverage . The state 's claims portfolio has reached $ 15bn , helped by the use of catastrophe bonds to transfer risk to the financial markets .
Californians are taking out earthquake insurance on their homes as experts warn that the state is overdue a large seismic shock . The California Earthquake Authority ( CA ) said 800 policies were bought in 2016 , compared to the annual average of 7,200 , lifting the number of active policies to 950,000 . Another 18,804 have been taken out this year alone , despite the fact that mortgage lenders do n't require buyers to have coverage . The state 's claims portfolio has reached $ 15bn , helped by the use of catastrophe bonds to transfer risk to the financial markets .