Napa earthquake could cost $1bn

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

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

Eqecat added 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 homeowners and renters in Napa have earthquake insurance.