Rio Dell council authorizes staff to add base-level parametric earthquake insurance

The Rio Dell City Council unanimously authorized staff to pursue a base-level parametric earthquake insurance option presented by the city's joint risk pool, SCORE.

City staff described parametric insurance as a model that pays based on measurable seismic metrics (ground shaking intensity) rather than on itemized damage estimates. The staff presentation said the quoted annual premium for the base option is $13,730 for a maximum policy payout of $500,000. Staff noted that had such coverage been in place before the December 2022 earthquakes, it would have produced about $450,000 in discretionary cash available to the city within 30 days.

Supporters at the meeting said the coverage could provide immediate liquidity to address short-term cash-flow gaps for emergency response and recovery — for example, paying contractors or temporary needs before federal or state reimbursements through FEMA or the California Disaster Assistance Act (CDAA) are received. Staff also said proceeds would be discretionary and subject to council direction.

The council voted 5-0 to authorize staff to add the base-level parametric coverage. Staff said the joint powers authority requested responses from participating jurisdictions by Dec. 19, 2025.

What happens next: Staff will complete enrollment paperwork and present implementation steps to the council; any future payouts would be at the council's discretion.