Following up on our article, the cost of earthquake insurance has increased sharply over 2005 prices.  The reason for  the increased premium is due to the higher cost of reinsurance.  Reinsurance is the insurance purchased by insurance companies.  The reinsurance community is still recovering from Hurricane Katrina. Premiums and availability of coverage vary considerably depending on location, soil conditions, and building construction.

Despite the increase in cost, we are still seeing clients continuing to include this coverage as part of their risk management program.

Chris Hill