CALIFORNIA IN BRIEF : SAN FRANCISCO : Court Rules on Quake Insurance

A state appellate court in San Francisco ruled that a California law requiring insurers to offer earthquake insurance with their homeowners policies does not prohibit insurers from refusing to carry a homeowner altogether, if he or she insists on buying earthquake coverage. Two Marin County homeowners had sued State Farm Fire & Casualty Co. because it refused to sell them earthquake insurance and canceled their entire policy when they demanded it. The court held that the company was within its rights and that the homeowners had no grounds to sue after they were forced to buy from another company.