San Francisco Earthquake Could Affect 1.1M Homes
A magnitude 7.0 earthquake along the Hayward fault under the San Francisco East Bay followed by 16 aftershocks ranging in magnitude from 5.0 to 6.4 could result in more than 1.1 million homes sustaining visible damage, with a smaller number expected to be functionally impaired. Total damage to private property for the entire scenario is estimated to be about $170 billion, with only a small fraction of damages insured, according to a new report by CoreLogic.
In a statement, CoreLogic estimated insurance payments to property owners of approximately $30 billion, less than 20% of the overall damage, primarily due to the low purchase rate of earthquake insurance. The $140 billion financing shortfall presents a real risk to effective regional recovery, in the company’s opinion.