Saturday marks 15 years since the catastrophic 6.7 Northridge earthquake. If a similar earthquake happened today the financial impact could further devastate an already weakened California economy.
A recent report by AON/Benfield indicates that the fallout of a large quake in southern California could lead many homeowners to walk away from damaged homes. Following the Northridge quake, mortgage default rates climbed for three years before settling in 1997.
In a separate study, Risk Management Solutions estimates that a 7.9 magnitude earthquake could lead to residential and commercial insured losses of between $15-to-$25 billion. RMS further estimates that in the impacted area, 94 percent of homes and 75 percent of commercial properties are uninsured.
The Northridge earthquake caused $17.5 billion in insured losses, killed 72 people and injured 12,000 others.
IINC is a non-profit, non-lobbying communications association representing the property/casualty industry. For more information, visit the IINC Web site at www.iinc.org.
ADDITIONAL RESOURCESRisk Management SolutionsAON/Benfield
