American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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Contact:

Brooke Kelley-Hunt

Phone:

847-553-3671

Email:

Brooke.kelley-hunt@pciaa.net

 

 

FOR RELEASE ON RECEIPT

March 26, 2014

PCI Offers Earthquake Insurance 101 to Help Consumers Prepare for Earthquakes

OKLAHOMA CITY - In the past seven days Oklahoma has experienced 36 earthquakes and while the tremors have not caused much damaged, the Property Casualty Insurers Association of America (PCI) urges residents to be prepared and consider purchasing earthquake insurance.

Recently there’s been in an increase in the number of tremors and earthquakes recorded across Oklahoma. In fact, the U.S. Geological Survey has recorded one earthquake today.

Earthquakes are unpredictable and can happen in a matter of seconds causing massive amounts of damage. Tomorrow the nation commemorates the 50th anniversary of the one of the worst earthquakes, The Great Alaskan Earthquake. According to the National Oceanic Atmospheric Association (NOAA) the 9.2 earthquake caused massive tsunamis that devastated several Alaskan coastal communities. The tsunamis caused an estimated $1 billion in damage and killed 124 people in Alaska, California and Oregon.

“The standard homeowners policy does not cover losses that result from earthquakes, due to the unpredictability and widespread catastrophic nature of these events,” said Joe Woods PCI’s vice president of state government relations. “While the damage from these smaller earthquake might not be noticeable this time, it should get residents thinking about the future and the importance of preparation for what could happen in the future is never a bad idea.”

Earthquake insurance is designed to provide coverage for catastrophe losses. Consumers are protected from the damage caused by the shaking that results from the movement of the earth. The deductible for earthquake insurance varies based on the policy and the insurer. These deductibles are generally based on a percentage of the replacement value of the home. The deductible can range from two to 25 percent of the home's replacement value.

FEMA offers some tips on how to prepare for an Earthquake:

 • To begin preparing, you should build an emergency kit and make a family communications plan.

 • Store breakable items such as bottled foods, glass, and china in low, closed cabinets with latches.

• Fasten heavy items such as pictures and mirrors securely to walls and away from beds, couches and anywhere people sit.

 • Secure your water heater, refrigerator, furnace, and gas appliances by strapping them to the wall studs and bolting to the floor. If recommended by your gas company, have an automatic gas shut-off valve installed that is triggered by strong vibrations.

 • Hold earthquake drills with your family members: Drop, cover and hold on.

For more information you can visit PCI’s Earthquake Headquarters.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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