US

Hayward Fault quake could cost over $200bn

Catastrophe modelling firm Risk Management Solutions (RMS) has estimated that a 6.8 magnitude earthquake on the Southern Hayward Fault in San Francisco would cause economic losses of between $112bn and $122bn and insured losses of between $11bn-$13bn. However, a magnitude 7.0 earthquake along the entire length of the Fault would cause economic damages of $210bn-$235bn and would more than double the insured losses to $30bn. On the anniversary of the 1868 Hayward Earthquake, RMS said the population of the area had increased by 25 times and many homes and businesses were vulnerable to uninsured loss in the event of another earthquake. “The impact of a major earthquake on the Hayward Fault is beyond what has been experienced in recent California history, with less than 15% of the losses likely to be covered by insurance,” said Mary Lou Zoback, vice president at RMS.