State legislators recently agreed to abolish an earthquake recovery fund, ending months of debate over whether it was adequately financed.

Legislators approved the California Residential Earthquake Recovery Act after the 1989 Loma Prieta earthquake that damaged Santa Cruz, San Francisco, and other nearby areas. The earthquake fund, financed by small annual surcharges on home owners, was designed to fill the gap caused by high insurance deductibles. It covered the first $15,000 of home damage.

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