Sunday’s 6.0-magnitude earthquake that struck the northern region of California will generate economic losses of $4 billion, including immense damage that prompted wineries and other businesses that depend on tourists.
Insurers are estimated to cover approximately $2.1 billion. It was noted by the Insurance Information Institute that the costs covered by the industry will be limited because many homeowners do not have earthquake insurance coverage. Claims will be submitted primarily made by businesses, particularly wineries and vineyards.
The strongest earthquake in quarter of a century hit the Napa region early Sunday morning, which injured more than 200 people and damaged historic buildings and roads. Nearby residents were left without water and power and California Governor Jerry Brown was forced to declare the area a disaster zone.
For days now, sidewalks in front of restaurants, antique stores and wine shops have been cluttered with debris and broken glass. The municipality has so far red-tagged 33 buildings as being uninhabitable.
“It was the most powerful earthquake I’ve ever felt,” said Dianne Cameron, a 45-year-old Napa resident, in an interview with Bloomberg News. “It was lifting the bed off the floor so much that I had to hold onto the mattress so I wouldn’t fall off. It was as if someone picked up the house and started shaking it.”
Most experts concur that it will take years before Napa and the wine industry can fully recover.
Early Tuesday morning, a small aftershock rattled Napa County. According to the United States Geological Survey (USGS), there was a 3.9-magnitude temblor that occurred seven miles south of Napa at 5:33 a.m. There have been no immediate reports of damage or injuries. Since Sunday, there have been numerous aftershocks, but most of them have been 2.0-magnitude or less.
In British Columbia, officials are warning that the province needs to be wary of an earthquake to strike the area. Experts recommend that residents can start preparing for a natural disaster well in advance since the region is due for a “big one.”