Earthquake Insurance – Things you must know about it

Since the insurance commissioner came out last September encouraging Oklahoman’s to get earthquake insurance, we have had a lot of costumers calling to ask about the coverage.  This mostly came about from the U.S. Geological Survey releasing a report that states Oklahoma has seen a significant increase in seismic activity that could possibly get worse.  Recently, an earthquake warning was issued for our state indicating that an earthquake of 5.0 or greater could happen in the very near future.

Things that get Covered under Earth Quake Insurance

This is somewhat of a new peril for Oklahoman’s to experience so a lot of questions have been coming in about the coverage.  Here are a few things you need to know….

1)    Earthquake coverage is NOT a standard coverage on a home policy.  You have to add the endorsement to your current policy for it to be covered.

2)    Even renters policies can have earthquake coverage added.

3)    The deductibles are high.  Our lowest deductible is 2% but most carriers have a minimum deductible of 5% to 10%.

4)    Some carriers do NOT cover exterior brick.

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5)    Only about 5% of Oklahoman’s currently carry earthquake coverage but I have a feeling those numbers will change due to the recent warnings.

6)    The coverage is cheap!  Most policy owners can expect to pay $80 to $150 a year.  That amount is even lower for renters.

7)    Get the coverage now while there isn’t a lockout period.  Depending on the size of the earthquake, carriers can implement a moratorium on adding the coverage for a certain amount of time due to the likelihood of aftershocks.

If you have questions about earthquake coverage then following the NAIC has a great guide online on car insurance

Where to get Earth Quake Insurance

Though there are lots of insurance companies being available all over the country still not all of them provides you Earth Quake Insurance for sure, yet also some major banks are also providing out this Earth Quake Insurance. In our suggestion getting Earth Quake Insurance from banks is a much better option.

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