Sunday, August 28, 2011
Homeowners in East largely unprotected by earthquake coverage
Hayley Peterson has an important column on p. 4 of the Aug. 26 Washington Examiner, “Few homeowners’ earthquake damage covered by insurance”, link here.
Less than 5% of East Coast residents carry earthquake insurance, which means that some are paying enormously because Virginia’s recent tremor was larger than ever expected in this area. Homeowners in Boston, South Carolina, and even New York may be naïve about the risk they faced, given historical facts going back to the 18th Century. This may be an issue in the Midwest with the New Madrid MO “fault”.
Earthquake coverage usually has huge deductibles, such as $25000 or 5% of the value of the property, whichever is more.
Recently, found apartment buildings in Fairfax County were condemned (at least temporarily), as well as two in Prince Georges County, due to foundation damage from the Aug. 23 Virginia quake.
The article mentions EQECAT, a California company that calculates insurance risks associated with a variety of perils, link here.