探花精选

They Don't Just Happen in California; Quakes Can Occur from the Big Apple to the Heart of the Homeland, Says the I.I.I.

INSURANCE INFORMATION INSTITUTE
Oficina de Prensa
New York: 212-346-5500; media@iii.org
Washington, D.C.: 202-833-1580

NEW YORK, April 1, 2008 - Earthquakes are commonplace in California and parts of the west coast, but did you know that earthquakes have occurred in 39 states over the last 100 years and have inflicted damage in all 50 states? One of the largest historic earthquakes to strike the continental U.S. occurred in the winter of 1811-12 along the New Madrid seismic zone, which stretches from just west of Memphis, Tennessee, into southern Illinois. With earthquakes happening in almost every state in the country, homeowners and business owners need to be better prepared, according to the (I.I.I.).

Each year there are about 5,000 earthquakes that occur in the U.S. The potential cost of earthquakes has grown due to an increase in urban development in seismically active areas and the vulnerability of older buildings which may not have been built or upgraded to current building codes.

Standard homeowners, renters and business insurance policies do not cover damage from earthquakes. Coverage is available either in the form of an endorsement or as a separate policy for homeowners, renters and small business owners usually on an actual cash value basis, though in some states you can purchase replacement coverage. Earthquakes policies are not intended to replace all your possessions; they are designed to help the policyholder avoid catastrophic loss while keeping premiums affordable for more consumers.

Unlike flood insurance, earthquake coverage is available from private insurance companies rather than from the government. In California, homeowners can also get coverage from the California Earthquake Authority (CEA), a privately funded, publicly managed organization. An earthquake endorsement generally excludes damages or losses from floods and tidal waves-even when caused or compounded by an earthquake.

Loss caused by landslide, settlement, mudflow and the rising, sinking and contracting of earth may be covered if the damage resulted from an earthquake, depending on the state and your individual contract. Contents coverage is very limited. Depending on where you live, coverage for fences, pools or outbuildings is usually not included. Additional Living Expense (ALE), also known as Loss of Use, is extremely limited in some states like California-typically, about $1,500.

Earthquake insurance provides protection from the shaking and cracking that can destroy buildings. Coverage for other kinds of damage that may result from earthquakes, such as fire and water damage due to burst gas and water pipes, is provided by standard home and business insurance policies. Cars and other vehicles are covered for earthquake damage under the comprehensive portion of an insurance policy.

There are generally percentage deductibles for earthquakes. Deductibles can range anywhere from 2 percent to 20 percent of the replacement value of the structure, depending on your proximity to a fault line. The standard CEA policy includes a deductible that is 15 percent of the home's replacement cost. Insurers in states like Washington, Nevada and Utah, with higher than average risk of earthquakes, often set minimum deductibles at around 10 percent. In most cases, consumers can request higher deductibles in order to save money on earthquake premiums.

Some insurers may require an inspection of your property before they will agree to issue a policy. For example, many companies require that your home be bolted to its foundation. Other factors that might be considered by an insurer include:

• The location and bracing of interior walls
• Strapping guards to secure fixtures such as water heaters
• The manner in which shelves are mounted on walls

Improving many of these factors is not expensive, and makes good sense. Some improvements can be expensive and may require a contractor. Consumers should examine their individual situation before deciding whether to undertake construction improvements aimed at qualifying for earthquake insurance. Additionally, requirements will vary from insurer to insurer. Some insurers may be willing to waive construction changes if the consumer is willing to purchase coverage with a higher deductible.

"Unlike other disasters such as hurricanes, there are no seasons or warnings for earthquakes," said Loretta Worters, vice president, I.I.I. "They can happen almost anywhere at anytime. That's why it's important to have a disaster recovery plan which includes securing the right type and amount of insurance. Consider what would happen inside your home or business if an earthquake occurred. A few simple steps can reduce property damage, save lives and reduce injury."

Unfortunately, even in earthquake prone states, most people are not properly prepared for a disaster. In fact, a sponsored by the (IINC) and found that only 22 percent of Californians consider themselves to be prepared for a disaster despite the fact they believe their state is prone to disasters, and only 12 percent of California homeowners carry earthquake insurance.

"Your home is one of your most important assets," said Worters. "Protecting it just makes good sense."

The I.I.I. and the (IBHS) suggest several basic steps you can take to protect your family and home from disaster.

Inside the House

• Anchor bookcases and filing cabinets to nearby walls.
• Anchor large appliances, such as water heaters, to walls using straps.
• Install ledge barriers on shelves; place heavy items on lower shelves.
• Use closed screw-eyes and wire to securely attach pictures and mirrors to the walls.
• Attach computers and small appliances to desks, tables or countertops.
• Install latches on drawers and cabinet doors to keep contents from spilling.

The Structure of the House

If the structural elements of your home need reinforcing, you can consider investing in some of the most important and common retrofits:

• Add anchor bolts or steel plates between your home and its foundation.
• Brace the inside of your home's cripple wall (the short wood-stud wall between the top of the foundation wall and the first floor) with sheathing.
• Brace unreinforced chimneys, masonry and concrete walls and foundations.

For more information on earthquake insurance, visit the , the and the .

For related audio, go to Earthquake 探花精选.

For related video, go to Earthquakes.

The I.I.I. is a nonprofit, communications organization supported by the insurance industry.