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Earthquake Insurance Facts
December 16, 2008
FOR IMMEDIATE RELEASE
Russ Dubisky, Executive Director
803-252-3455 or cell phone 803-708-5271
russd@scinsnews.com
Earthquakes in South Carolina
Updated December 16, 2008
- Most people don't buy earthquake insurance because they think it's too expensive and an earthquake will never happen to them. In South Carolina, the entire state is considered to have a moderate to high risk for earthquakes.
- An earthquake of the same magnitude as the 1886 earthquake would cost close to $40 billion in today's dollars (according to AIR Worldwide).
- Most homeowner and rental insurance policies DO NOT cover damages caused by an earthquake, but coverage can be added to most policies as an "endorsement" for an additional cost.
- Even in earthquake prone areas, only 25-28% of homeowners have earthquake insurance (Western Insurance Information Institute).
- Earthquake deductibles are set as percentages, i.e. 5% or 10% of the coverage amount rather than fixed dollar amounts. The earthquake deductibles apply separately from your basic homeowner's (and business) policy deductible.
- Following a damaging earthquake, South Carolinians could face loss of life, injury and property damage. Without earthquake insurance, you will have to pay for all losses to your home and possessions.
The South Carolina Insurance News Service recommends South Carolinians understand the following basic information regarding their homeowners insurance and earthquake coverage:
■ Most homeowner and rental insurance policies do not cover damage caused by an earthquake, but coverage can be added to most policies as an “endorsement” for an additional cost. Earthquake insurance covers the damage to a home and its contents caused by the movement of the earth.
■ Even in earthquake prone areas, less than 15% of homeowners have earthquake insurance.
■ Earthquake insurance is sold with a deductible on the amount of coverage. Deductibles are set as percentages, i.e., 5% or 10% of the coverage amount rather than fixed dollar amounts (higher deductibles are also available). These deductibles are separate from your basic homeowner’s policy deductible.
■ Earthquake insurance can be quite inexpensive. Contact your insurance agent or company to find out what the costs would be for your home.
■ Check for hazards in and around the home. Look for things that could fall or move during an earthquake. If you have a frame house, is it fastened to the foundation? Are your gas connectors flexible to help prevent fire? Learn how to turn off the gas, electricity and water to your house and secure your hot water tank with straps so it cannot tip over.
■ Consider retrofitting your home to make it more resistant to earthquake damage.
■ Educate your children about earthquakes and what they should do if one occurs.
• South Carolina experiences many earthquakes annually.
• No area in the state is immune from earthquakes. While the frequency of earthquakes in South Carolina is low, the potential for a severe quake is high. Most people don't buy earthquake insurance because they think it's too expensive and an earthquake will never happen to them, but in South Carolina, the entire state is considered to have a moderate to high risk for earthquakes. (Earthquake Education Center, Charleston Southern University)
• Most homeowner and rental insurance policies DO NOT cover damage caused by an earthquake, but coverage can be added to most policies as an "endorsement," for an additional cost.
• Even in earthquake prone areas, less than 15% of homeowners have earthquake insurance. (Insurance Information Network of California)
• Earthquake deductibles are set as percentages, i.e. 5% or 10% of the coverage amount rather than fixed dollar amounts. The earthquake deductibles apply separately from your basic homeowner's (and business) policy deductible.
• About 70% of earthquakes in South Carolina are located in clusters around three areas: (1) Ravenel-Adams Run-Hollywood, (2) Middleton Place-Summerville, and (3) Bowman. These are not, however, the only places that earthquakes occur in South Carolina. Earthquakes have occurred in the Lake Jocassee area, Charleston/Summerville and near the Monticello Reservoir area in the past year. Other locations in the state with low level earthquakes in the last ten years are near Bowman, Neeses, Aiken, McCormick, Greenwood, Liberty Hill and the Savannah River Site. (Earthquake Education Center, Charleston Southern University and University of South Carolina, South Carolina Seismic Network)
• The earthquake of 1886 in Charleston registered 7.6 on the Richter Scale and was felt from Cuba to New York and from Bermuda to the Mississippi. Approximately 110 persons lost their lives. Damage estimates in 1886 dollars were about $5.5 million. Ninety percent of the brick structures around Charleston were damaged. (Earthquake Education Center, Charleston Southern University)
• Following a damaging earthquake, South Carolinians could face loss of life, injury and property damage. Without earthquake insurance, all of the losses to your home and possessions would have to be financed by you or by relying on the federal government for assistance.
For more information on earthquakes in South Carolina or for an interview call 803-252-3455 or e-mail alove@scinsnews.com
For more than 30 years, the South Carolina Insurance News Service, a nonprofit organization, has been providing free insurance information to consumers and the media about property and casualty insurance issues. The News Service is funded by insurance companies doing business in South Carolina.
For more information, contact the South Carolina Insurance News Service at 803-252-3455 or use our contact form.
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