First thing this morning, we received a bulletin from CNA suspending EQ binding authority in three states in the affected area. I wonder how long this will stay in effect ? a certain number of weeks past the last aftershock ? just curious, since EQ is so unpredictable, what are the underwriting criteria for this ? Of course, from John Q Public perspective, it looks like another ins co trying to exclude coverage for anything likely to result in a claim.
I am surprised your bulletin did not reveal the length of the moratorium. In my state its 30 days after the most recent aftershock. As for John Q Public?
What does a moratorium that prevents binding EQ in the future have to do with what’s been covered in the past? For the few left who actually have an agent, they can get clarity from a reliable source. For the rest who don’t have an agent? Let the government fill the gap that your own insurer won’t.
I’m guessing your moratorium will remain in effect for at least 7 days following the last aftershock recorded. Most catastrophe reinsurers consider everything within 168 hours one earthquake event.
Here in the Pacific Northwest EQ is ahout
$2 per thousand per year. For that my clients get building and contents covg with a ten percent deductible. We are in an earthquake zone similar to the risk in California. Reportedly about 15% of homeowners here have eq.
things are changing here, in Missouri, we’re supposedly #3 in EQ coverage after CA and WA. A bit over half are supposed to have the endorsement on their policy.
However, recently, State Farm increased the min ded to 20% in increased the premium drastically; Travellers followed with same. Other carriers, like American Family (very large in St. Louis area) and Safeco offer 15%.
Most consumers do not begin to understand their policy, let alone the earthquake provisions. I remember when the 5% ded on my old State Farm policy sounded high.
How many people do you thing will be able to afford a $40000 ded on a 200k home?
Better $40K on a small business administration loan than $200K on your own. Also, I can take any settlement for contents and apply that to repairing my real estate.
no doubt better to have some rather than none, but fully expect the remaining industry to go to 20% ded’s as well.
Many won’t have the money to repair if we get a major loss, even with the coverage. Word has it reinsurers do not want to touch EQ, or are hiking rates drastically.
This one scared the ‘stuff’ out of me the other nite; heard the rumbling and suddenly realized…Quake! It hit around 437 am. I’ve always carried the coverage, but 20% will ruin those who have the coverage, while those who don’t will scream for govt buyouts…I’ve already heard one yokel who claims he’s suing his ‘major carrier’ because they won’t pay for his damage.
We had an earthquake in 2001 that resulted in a small amount of damage and a huge amount of education. FEMA will give grant money – about one months worth of living expenses. They will also facilitate an SBA loan at reduced interest rate for repairs, suitable to make up the gap associated with the deductible. But no widespread government bailout. Lets see if the earth movement exclusion stands, or if a resourceful class action attorney decides to test it in the way the flood exclusion has been tested in other states.
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I wonder what percentage of homeowners even purchase earthquake coverage in the midwest. Bet its less than 10 percent.
First thing this morning, we received a bulletin from CNA suspending EQ binding authority in three states in the affected area. I wonder how long this will stay in effect ? a certain number of weeks past the last aftershock ? just curious, since EQ is so unpredictable, what are the underwriting criteria for this ? Of course, from John Q Public perspective, it looks like another ins co trying to exclude coverage for anything likely to result in a claim.
I am surprised your bulletin did not reveal the length of the moratorium. In my state its 30 days after the most recent aftershock. As for John Q Public?
What does a moratorium that prevents binding EQ in the future have to do with what’s been covered in the past? For the few left who actually have an agent, they can get clarity from a reliable source. For the rest who don’t have an agent? Let the government fill the gap that your own insurer won’t.
I’m guessing your moratorium will remain in effect for at least 7 days following the last aftershock recorded. Most catastrophe reinsurers consider everything within 168 hours one earthquake event.
Gill, humans in the midwest DO purchase earthquake. I’ll bet more than half my clients have it (here in Iowa). It is very inexpensive here!
Here in the Pacific Northwest EQ is ahout
$2 per thousand per year. For that my clients get building and contents covg with a ten percent deductible. We are in an earthquake zone similar to the risk in California. Reportedly about 15% of homeowners here have eq.
things are changing here, in Missouri, we’re supposedly #3 in EQ coverage after CA and WA. A bit over half are supposed to have the endorsement on their policy.
However, recently, State Farm increased the min ded to 20% in increased the premium drastically; Travellers followed with same. Other carriers, like American Family (very large in St. Louis area) and Safeco offer 15%.
Most consumers do not begin to understand their policy, let alone the earthquake provisions. I remember when the 5% ded on my old State Farm policy sounded high.
How many people do you thing will be able to afford a $40000 ded on a 200k home?
Better $40K on a small business administration loan than $200K on your own. Also, I can take any settlement for contents and apply that to repairing my real estate.
no doubt better to have some rather than none, but fully expect the remaining industry to go to 20% ded’s as well.
Many won’t have the money to repair if we get a major loss, even with the coverage. Word has it reinsurers do not want to touch EQ, or are hiking rates drastically.
This one scared the ‘stuff’ out of me the other nite; heard the rumbling and suddenly realized…Quake! It hit around 437 am. I’ve always carried the coverage, but 20% will ruin those who have the coverage, while those who don’t will scream for govt buyouts…I’ve already heard one yokel who claims he’s suing his ‘major carrier’ because they won’t pay for his damage.
We had an earthquake in 2001 that resulted in a small amount of damage and a huge amount of education. FEMA will give grant money – about one months worth of living expenses. They will also facilitate an SBA loan at reduced interest rate for repairs, suitable to make up the gap associated with the deductible. But no widespread government bailout. Lets see if the earth movement exclusion stands, or if a resourceful class action attorney decides to test it in the way the flood exclusion has been tested in other states.