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Stanford Buys Earthquake Insurance

By Nicholas D. Kristof

STANFORD, Cal.--Stanford University has purchased a $60 million earthquake insurance policy because of its proximity to the San Andreas Fault, but university officials said the policy represents only 10 per cent of the replacement cost of all Stanford buildings.

Three Stanford professors have predicted that there is a 50 per cent chance that California will experience a major earthquake in the next decade.

In another study completed last year, three engineering students predicted Stanford would lose $50 million because of earthquake damage in the next 20 years.

Several Stanford buildings were destroyed or damaged in the 1906 earthquake that primarily struck San Francisco.

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