Estimated insured losses from the South Napa Earthquake will not exceed $250 million according to catastrophe risk management firm RMS.
The loss estimate reflects the combination of observed damage patterns in combination with the limited earthquake insurance penetration in the region.
This is quite a decrease from initial estimates produced just after the earthquake struck on Sunday August 24, 2014. Eqecat predicted insured losses of between $500 million and $1 billion from the earthquake.
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.
RMS reconnaissance teams found that damage from the South Napa Earthquake was within expectations given the magnitude and location of the earthquake.
After surveying areas affected by the earthquake, RMS found that the majority of damage was extremely localised within Napa County.
“The majority of businesses impacted by the earthquake reopened within a week of the event, following repairs and cleaning efforts. Most area wineries were impacted in some way – primarily by storage barrel damage – but are now open for business,” said RMS.
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RMS, Eqecat, Insurance Information Institute, North America