Missouri is the third-largest earthquake insurance market in the United States, trailing only California and Washington. According to a research by the United States Geological Survey, the likelihood of a magnitude 7.5 or higher earthquake in the New Madrid zone in the next 50 years is 7-10%. Over the same time frame, there’s a 25-40% chance of an earthquake of a magnitude greater than 6. According to a collaborative estimate by the University of Illinois’ Mid-America EarthquakeCenter and the Federal Emergency Management Agency, the New Madrid earthquake could result in the largest total economic loss of any natural disaster in US history.
Your homeowner’s insurance coverage does not cover earthquake damage.
Earthquake insurance must be obtained separately as a “endorsement” or as a standalone policy. The earthquake must be the direct cause of property damage in order for this sort of insurance to be valid. Natural disasters can, in many cases, set off other occurrences that cause property destruction. Earthquakes, for example, can cause bodies of water to produce waves, resulting in floods.
Earthquake coverage pays for damage to homes and other structures caused by shaking and cracking. Other insurance policies may cover damage caused indirectly by earthquakes. Even if triggered by a quake, fire and water damage caused by ruptured gas and water lines are normally covered by the basic section of a homeowners policy. Vehicle damage caused by earthquakes is covered by the comprehensive component of auto insurance policy.
Typically, earthquake insurance has two high deductibles: It’s a percentage of the cost of reconstructing the home, plus a separate deductible for the home’s contents, rather than a dollar sum. Deductibles ranging from 10% to 20% are usual. With a 20% deductible, for example, the owner of a $200,000 home could expect to spend up to $40,000 in deductibles before obtaining any benefit from their earthquake insurance policy.
The type of material used to construct your home can also affect premiums and whether or not your home is even insurable. Premiums for wood-frame homes, for example, may be lower since they endure tremors better than homes made of masonry, such as brick and stone. Single-story homes may also have reduced premiums due to the fact that they are less likely to be damaged by an earthquake. Premiums are also affected by the home’s age. Some insurers refuse to insure masonry homes in the event of an earthquake.
DCI understands the need of alerting consumers about insurers who provide earthquake coverage, as well as the reasons why they should consider purchasing insurance to cover damages caused by a catastrophic event. With a large number of Missouri property owners in the New Madrid Earthquake Zone, DCI believes it is critical to provide customers with up-to-date information on who to buy earthquake insurance from and where to get it. Please examine the Earthquake Shopping Guide and the Earthquake Report for additional information on the Missouri earthquake insurance market. Speak with your agent for further information about obtaining or keeping coverage.
Is earthquake insurance necessary in Missouri?
Earthquakes are becoming more common, as evidenced by recent quakes in Arkansas and Oklahoma. Surprisingly, most people’s existing homeowners policies do not include earthquake coverage. In Missouri, earthquake insurance is usually reasonable, but most people assume it isn’t necessary; however, we advise you to reconsider.
Is it a good idea to get earthquake insurance?
When determining whether or not to get earthquake insurance, the United States Geological Survey (USGS) recommends taking into account the following factors:
- The sort of land on which your property is built, including the soil type and slope.
That may appear to be a lot to consider, but it really boils down to three simple questions:
- Would you be able to pay to repair your home without the support of insurance in the event of an earthquake?
Last but not least, there’s a crucial question. Though the vast majority of the world’s 55 earthquakes per day do no or minor harm, it only takes one large one to wreak catastrophic damage to your property.
Check out this map from the USGS to see how often damaging earthquakes strike your location.
While earthquake insurance might be beneficial if your property is severely damaged and the cost of repairs exceeds your deductible, the high premiums and deductibles associated with earthquake coverage can make the balance between what you pay and what you receive unbalanced.
In fact, the Federal Emergency Management Agency (FEMA) estimates that most potential earthquake insurance buyers will not suffer damage that exceeds their deductibles.
Do I need earthquake insurance in St. Louis?
Several earthquakes have lately occurred in Missouri, Oklahoma, and Arkansas. They appear to be gaining in popularity in the southern Midwest states. Would you be surprised to learn that the majority of Missouri homeowners do not have earthquake insurance on their policies?
Despite the fact that earthquake insurance in the St. Louis area is reasonably priced, most people choose not to get it because they believe it is unnecessary. St. Louis earthquake insurance is vital, according to history.
Do I need earthquake insurance in Kansas City?
We can provide earthquake coverage for your Kansas property at Midwest Insurance Solutions. We understand that earthquake insurance is required in Kansas, so we’ll shop around with a few different firms to locate the best policy for you.
If you own a home in Kansas, you should take precautions to protect your property from damage caused by an earthquake.
Earthquake damage can cost thousands of dollars, and most homeowner’s insurance policies do not cover earthquake damage.
Midwest Insurance Solutions can help you find the proper balance of coverage and cost.
Is St Louis on a fault line?
With the New Madrid fault barely a hundred miles south of St. Louis, the region has long been considered to be more earthquake-prone than the rest of the Midwest. However, new research suggests that St. Louis is part of a larger area with its own seismic activity.
The Ste. Genevieve Seismic Zone, which stretches from St. Louis to Cape Girardeau along the Mississippi River, has been discovered by geologists. According to their findings, the zone is capable of producing moderate earthquakes every few decades and a catastrophic earthquake once every 2,000 to 4,000 years.
“It’s a game of chance, right?” It could happen in your lifetime if you’re unlucky. Gary Pavlis, a geologist at Indiana University, says the chances aren’t good.
On the Richter scale, a mild earthquake has a magnitude of roughly 5. They can be felt, according to Pavlis, but just disturb a few bricks here and there.
He was a member of the study’s geology team, which included geologists from Indiana University, Purdue University, Illinois University, the Indiana Geological Survey, and the Illinois Geological Survey. The team’s name is OIINK, which stands for Ozarks, Illinois, Indiana, and Kentucky, the region they’re investigating.
Do homeowners cover earthquakes?
Your homes insurance normally covers damage to your home, other structures, and contents from fire, smoke, lightning, hail, theft, and other perils as specified in your policy. Earthquake damage, on the other hand, is frequently excluded from home insurance coverage.
What happens if your house is destroyed by an earthquake?
Even if you lose your home in an earthquake, you still have to pay your mortgage. And only a small percentage of homeowners have earthquake insurance. It’s prohibitively expensive, with premiums ranging from 10% to 20% of the covered amount. Deductibles are also expensive.
Earthquake insurance often covers structural damage, temporary living expenses, and the replacement of personal items. However, due of the deductible and the possibility of delayed payment, you may face financial difficulty. If this is the case, contact your lender as soon as possible.
So, even if your house is destroyed by an earthquake, you still owe money on your mortgage. If you don’t have health insurance, you’ll have to find a means to pay your bills while still looking for and paying for a place to live.
You’ll have to look for alternative government assistance. Also, call your mortgage lender as soon as possible to discuss your choices.
Does house insurance cover earthquake damage?
Home structures can be severely damaged by earthquakes. Even relatively minor tremors can cause damage to housing foundations and collapse walls, and even relatively minor tremors can ruin furniture and belongings.
Earthquake damage is not covered by homeowner’s or renter’s insurance. A regular insurance, on the other hand, will typically cover damages from fires that occur as a result of a quake, as well as additional living expenses spent while your home is being repaired.
Earthquake damage is covered under the optional comprehensive portion of an auto insurance policy for cars and other vehicles.
Most private insurers, as well as the California Earthquake Authority in California, offer earthquake coverage as a separate policy or endorsement (CEA).
How much is earthquake insurance in St Louis?
There is considerable geologic evidence that the New Madrid seismic zone has had a lengthy history of activity, according to the United States Geological Survey. A French missionary on a cruise down the Mississippi River wrote the first documented account of an earthquake in the area. On Christmas Day, 1699, while camped in the vicinity of what is now Memphis, Tennessee, he felt a strong tremor.
The earthquake that struck southern Illinois on November 9, 1968, was the greatest in the central United States since 1895. In Hermann, St. Charles, St. Louis, and Sikeston, Missouri, the magnitude 5.5 earthquake caused moderate damage to chimneys and walls. All or parts of 23 states are included in the felt areas.
A magnitude 4.0 earthquake struck in the early hours of Feb. 21, 2012, in the southeast region of Missouri, waking up citizens in as many as 12 neighboring states. Homeowners watched as their possessions tumbled from their walls and shelves after windows were destroyed.
Is There Anything You Can Do to Protect Yourself?
When it comes to earthquakes, St. Louis University has a system of alerts in place for citizens. As part of the Advanced National Seismic System, SLU’s seismic network, which is sponsored by a cooperation agreement with the US Geological Survey, produces a stream of calibrated digital seismic data.
Acceleration and wideband sensors are used in the seismic network. The difference is that the first is a low-sensitivity equipment meant to record very big earthquake motions on scale, whilst the second records tiny local and long-distance earthquakes on scale.
The university is there to assist individuals prior to an occurrence such as an earthquake, but it’s also critical that you have protection once the event has occurred.
Does Your Homeowners Insurance Cover Earthquakes?
While many people think of California when they think of earthquakes, Missouri is also a place where large-scale earthquakes could occur. Although Californians buy the most earthquake insurance, Missouri is third in total premium volume, with over $88 million.
Most homeowner’s insurance policies do not include earthquake coverage. The coverage must be purchased individually as a “endorsement.” This additional coverage requires that the earthquake be the direct cause of property damage. Natural disasters can set off additional occurrences that can cause property damage. One example is earthquakes that cause waves in bodies of water, resulting in flooding.
What Does Earthquake Insurance Cover?
Earthquake coverage pays for damage to homes caused by shaking and cracking, which can cost thousands of dollars and make the home uninhabitable. Damage produced indirectly by earthquakes may be covered by other insurance policies. Even if the damage was caused by a quake, the basic section of homeowners policy usually covers fire and water damage caused by broken gas and water pipes. The comprehensive section of auto insurance policy covers vehicle damage caused by earthquakes.
It’s critical to determine what your homeowners and automobile insurance cover in order to secure the appropriate earthquake policy endorsement.
How Much Should You Pay for Earthquake Insurance?
The Missouri Department of Insurance reports that earthquake coverage in St. Louis has decreased during the last decade. In 2009, 62 percent of houses in St. Louis County had coverage, down from 73 percent in 2002. Coverage in St. Charles County fell from 77 percent to 66 percent. It dropped from 48 percent to 36 percent in the city of St. Louis.
Why? The cost of insurance has risen significantly over the years, yet it is still affordable. In St. Louis County, earthquake coverage costs an average of $153 a year, $161 in St. Louis, $87 in Jefferson County, and $99 in St. Charles County.