The 1994 Northridge Earthquake, which measured 6.7 (in the "moderate" range) caused approximately
While multifamily structures represented 22% of the
Since 1994, multifamily residential units in
In 1994, insurance played a key part in recovery from the earthquake. Out of the
Today, however, less than 10% of condo associations have a master earthquake insurance policy and less than 5% condo owners buy an individual policy – and individual policies available cannot provide condo owners with full coverage. While the state has seen rapid grown in vulnerable multifamily residential structures, a much smaller fraction of those structures have insurance.
"Insurance and a strong economy are critical to resiliency after a catastrophe," said
And a major earthquake striking
Before Motus, approximately 2.5 million condominium owners in
The Motus Program allows boards to get all the benefits of a traditional master policy without straining the association budget. When the
"Today, as the world copes with COVID-19, the impact of a catastrophe where there is no insurance becomes very clear: severe economic damage, resulting in what is likely to be a long road to recovery," said Wallis. "Insurance is a critical element of any disaster preparedness plan, both for individuals and for the economy as a whole, and proper coverage is something condominium boards and unit owners should carefully consider."
About The Motus Solution
The Motus Opt-In Earthquake Program is designed to bring all the benefits of a traditional master earthquake insurance policy to the more than 30,000 associations and over 2.5 million condo owners who are not covered by one.
Only a master earthquake policy can allow a condo owner to fully protect the equity in their home. This is because only a master policy can fully cover damages to residential buildings, foundations, garages, underground pipes and other common areas within the community. Traditional unit owner policies (which are only available to about 1 million of the over 2.5 million condo owners who do not have a master policy) were designed to supplement a traditional master policy – not replace the coverage they provide.
Each Motus Program is a custom-built master policy based off the specific exposures of the association. Once the board approves the Motus Program for its association, each unit owner then has the option to purchase their pro-rated rated share of a master policy - covering unit interiors, residential buildings and common areas.
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