Declan Murphy wrote:

> Eric Takabayashi wrote:
> 
> 
>>This particular one is causing coastal flooding and power outages here. I
>>was surprised to hear the death toll and list of missing for just the last
>>big typhoon was maybe 145 nationwide. Is that not more than everything that
>>hit Florida this year? I am now curious about financial losses, which
>>Japanese news do not seem to report.
> 
> 
> Interesting question. I'm not sure why most insurance policies will
> cover the cost of typhoon damage, but not earthquake damage. I assume
> its just a matter of relative risk.
> 
> 
It's completeness of risk, more than anything. Typhoons whack the hell 
out of things, but most property is rebuildable after the worst of 
typhoons, and the vast majority of correctly built buildings survive 
with no more than roof and window damage. Mild earthquakes don't do 
much, but a severe earthquake will render surrounding buildings 
completely demolished, with no real chance of rebuilding. Buildings that 
seem rebuildable can have hidden damage that confounds cost estimation. 
Insurers can deal with reliably losing a small percentage spread across 
a wide base better than dealing with absolute destruction of an unknown 
percentage of the base. More predictable, and easier to reinsure.

California earthquake insurance comes with a hell of a deductible. Mine 
costs me only $4000 a year, but it has a $175,000 deductible. Only 15% 
of Californians carry it at all.

KWW