Earthquake Insurance - Are you prepared?
Earthquakes can come when one least expects it. Unlike other natural disasters, there is no specific season for earthquakes. To make matters worse, chaos usually follows their sudden wrath of violent shaking. Landslides, avalanches, flash floods, fires and tsunamis often trail earthquakes, making them one of the most feared and most expensive disasters known to mankind. It is important to take the proper precautions in dealing with a situation of this magnitude - Swingle Collins & Associates can advise on earthquake insurance to protect you family and belongings in the event of a catastrophic loss.
The most important thing to note when it comes to concerning earthquakes with insurance is that quake coverage is not included in a standard policy. Coverage is usually available for earthquake damage in the form of an endorsement to a home or business insurance policy. However, although some insurers don’t sell quake coverage, they may still be affected due to loss claims from calamities following the disaster.
As the development of urban areas in seismically active areas increases, the threat of losses from a quake is becoming more substantial. Even after history has continued to prove the destruction, risk, and high cost of earthquakes, a very small percentage of Americans have purchased protection. For example, in California, where the risk is over 99 percent, only 12 percent of homeowners have earthquake insurance.
Latest Earthquake Losses: Insured losses from earthquakes hit a record high in 2011, at $54 billon. The largest single insured earthquake loss, $25 million, resulted from a 7.0 magnitude quake in China.
Fracking: Fracking is the process of drilling into the earth to inject liquid at a high pressure into rocks and rock formations to force open fissures which enables the ability to lodge oil or gas. In 2011, a 5.7 magnitude earthquake hit Oklahoma, and according to the US Geological Survey, the quake was a result of fracking. The U.S. Department of Interior has confirmed that, due to the disposal of waste through fracking, there has been a significant increase in seismic activity.
Studies: Published in the journal of the Earthquake Engineering Research Institute, scientists at the U.S Geological Survey observe that populations in seismically active areas are constantly climbing. This increase results in more fatalities and other losses from cataclysmic earthquakes in our current century then ever before.
Earthquake Coverage: The Insurance Information Institute conducted a survey in 2013 to investigate the amount of Americans that actually invest in earthquake coverage. They discovered that Homeowners in the Northeast are least likely to buy coverage while those in the Midwest are mostly likely.
Mitchell, Eve. "Latest News." Why Earthquake Insurance Is Tough Sell, Even In Bay Area. Oakland Tribune, 14 Oct. 2009. Web. 17 July 2014. <http://www.uphelp.org/news/why-earthquake-insurance-tough-sell-even-bay-area/2009-10-14>.
Swingle, Collins & Associates specializes in earthquake insurance personal property and casualty coverage in Dallas, Southlake, Highland Park, and Plano for affluent families and high net worth individuals. The descriptions of earthquake insurance policy coverage listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs for property and casualty insurance please contact your dedicated risk manager to discuss the benefits and services of personal homeowners insurance coverage.
The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverage, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.