Insured losses from the north California earthquake are not expected to exceed $US250 million ($268 million), according to catastrophe risk management company RMS.

Estimates have varied wildly since the magnitude-six quake hit the Napa and Solano regions on August 24, but RMS says in a swipe at its competitors it releases loss estimates only when it has gathered enough information to make an informed assessment, including ground reconnaissance and detailed modelling.

Its reconnaissance teams found damage is “within expectations” given the event’s magnitude and location. 

“The majority of businesses affected by the earthquake reopened within a week of the event, following repairs and cleaning efforts.”

Catastrophe modeller AIR Worldwide says the worst damage is to older, unreinforced masonry buildings. Structural damage to newer construction is limited. 

AIR says commercial properties and contents will dominate losses, but estimating insured losses “remains uncertain”. 

“Perhaps the biggest uncertainty is with respect to commercial insurance penetration, including business interruption. The earthquake occurred during the height of the wine country’s tourist season and many wineries remain closed.” 

Only about 12% of California homeowners have earthquake policies. From 2012, quake policyholders could choose to cover a structure only, a structure and its contents or a structure and living expenses through the California Earthquake Authority.

The authority is a privately funded, publicly managed, non-profit agency that accounts for two-thirds of the state’s insured residential property risk.