As most of you know, we all live very close to or on the New Madrid Fault Line. Since 1974, this has been responsible for more than 4,000 earthquakes. Many carriers today do not offer earthquake insurance coverage, and the ones that do are requiring higher and higher deductibles every year.
There is no way to predict exactly when or where an earthquake will occur. While seismologists can predict and study the appearance and effects of earthquakes, nobody know where or when an earthquake is going to strike. While Missouri and St. Louis in particular isn’t exactly earthquake country, we have had some major earthquake in St. Louis historically. In 1812, St. Louis suffered a terrbily devistation earthquake. Theres a 7-10% chance of a quake of this magnitude striking St. Louis again in next 50 years says the U.S. Geological Service. They also claim that chances of a lesser quake is 25-40% – that could crack and topple St. Louis home brick walls and chimneys. STLtoday has an interesting article discussing some important point of consideration on earthquake insurance.
Determining Earthquake Damage and Rates in St. Louis, MO
Most earthquake insurance policies have a very high deductible, making earthquake insurance useful if your entire home is destroyed, but not if it damaged (even severely in some cases). Rates are often less expensive for home made of wood, because they can withstand an earthquake more resiliently its brick counterpart. Earthquake damage is determined using a Damage Ratio (DR). This DR is a simple ratio of earthquake damage money amount to the total value of the home. HAZUS is another tool used for damage determination. It is a computerized procedure used specifically for loss estimation.
Know Your Options
Every insurance company is growing ever more cautious of insuring earthquake coverage because an earthquake strong enough to destroy one home will likely level a whole block. This makes it a big risk to insure lots of homes in the same area that could all incur massive damage all at once. And that is why earthquake detectables are so high. Your personal Mark Anthony Group agent will advise you on your options. We provide multiple options to our clients both in and around the St. Louis area. Whether your home was built in 1890 of solid brick, or 1980 of wood and vinyl siding, our agents can structure your policy to fit your specific earthquake insurance needs.