Only 10% of homeowners in California have earthquake insurance,even though the state is most at risk for damaging earthquakes,says CNN Money. According to the article, here are threereasons why the majority of Californians don't have earthquakeinsurance:

1. The deductible isn't worth the money.Earthquake insurance generally comes with a deductible of 15% ofthe home's value, John Rundle, a professor of physics at theUniversity of California, Davis, tells CNN Money. According toRundle, most homeowners will never exceed the deductible, even ifthey do get earthquake damage.

After the Northridge earthquake, the California EarthquakeAuthority was created by state legislature and today sells the mostpolicies. Glenn Pomeroy, CEO of the authority, tells CNN Money thehigh deductibles are necessary to keep premiums affordable.

Rundle says the money homeowners would pay for insurancepremiums is better spent reinforcing or retrofitting homes to beearthquake-resistant.

2. Californians took a big hit in the housingbust. Many Californian homeowners have little to no homeequity, or ar underwater on their mortages, following the realestate crisis. Without equity, many homeowners simply can't affordto pay for earthquake insurance. If a big earthquake does strike,many struggling homeowners can simply walk away from theirmortgages.

3. Homeowners are not confident in CEA'ssupport. Like any insurer, the CEA would stop payingclaims if catastrophic earthquake losses exceed the Authority'sreserves. This discourages many homeowners from buyingcoverage.

However, Pomeroy tells CNN Money that homeowners shouldn'tworry–it won't happen because CEA is very well capitalized.

“We could handle two Northridges,” says Pomeroy. “I worrybecause so many people don't have coverage.”

Read more from CNN Money HERE.