This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Californians Are In Deep Doo-doo

California is home to about two-thirds of our nation's earthquake risk, with 2,000 known fault lines throughout the state producing approximately 37,000 earthquakes a year, averaging 102 per day, according to the California Earthquake Authority (CEA). The CEA is a nonprofit organization that provides residential earthquake insurance and encourages Californians to reduce their risk of earthquake loss.

According to a 2008 study by the Uniform California Earthquake Rupture Forecast (UCERF), there's more than a 99 percent probability that Californians will experience one or more magnitude 6.7 or larger earthquakes in the next 30 years, potentially capable of causing extensive damage and loss of life.

It's scary then that only 11.3 percent of homeowners in California have earthquake insurance and just 6.67 percent of businesses carry coverage, says Pete Moraga, a spokesperson for the Insurance Information Network of California.

Blissfully unaware

Californians appear determined to remain unprepared for the eventual "Big One." So why is that?

It depends on who you talk to, says Moraga. "One reason is that it's been a pretty long time since we've seen a major earthquake in California that has hit close to an urban area." The last was the 6.7 magnitude Northridge earthquake in 1994, hitting Reseda, a Los Angeles neighborhood.

When you haven't had an earthquake hit an urban area in a long time, people tend to forget about the scope of devastation and the problems that occur afterwards.

"Some people will push away the facts and either ignore them, or rationalize them," says Steve Orma, a San Francisco-based clinical psychiatrist. "They might tell themselves, 'It won't happen to me,' or 'God will protect me.' Or [they] hold a fatalist view of 'Whatever happens, happens -- I have no control over it.' They might also believe that even if an earthquake does hit, they'll be fine, which may or may not be true."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs