ABSTRACT
This chapter provides information on four major findings which have implications for public policy. First, the purchase of earthquake insurance coverage, as measured by both numbers of policies and percentages of households, has increased dramatically since 1973. Second, the propensity to buy insurance is not consistently related to either the demographic or economic characteristics of the homeowner. Third, the efforts of federal and state agencies to inform homeowners about geographical risks of damage have not effectively educated the public. Finally, of all parameters studied, individual homeowner's assessment of potential damage to their homes was the factor most highly correlated to insurance purchase. If higher rates of private insurance subscription are a public policy goal, then attention should be given to clearer and more personalized risk messages and personalized offers of insurance, as well as regulation of premium rates.
