Category Archives: Weather Insurance

TAHLEQUAH — Oklahomans have always experienced the diverse furor aimed by Mother Nature at this part of the country. but 2011 has been a banner year. Tornadoes are prevalent. In may 1999, an outbreak produced 66-74 tornadoes statewide, killing 48 people, and causing over $1 billion in damages. the destruction was unprecedented, but the severe weather was not. According to the National Weather Service, Oklahoma averages 52 twisters per year – more than any other state in terms of instances per square mile. the same spring weather that leads to tornadic activity also results in hail. Last may, Oklahoma City was hammered by a hail storm that hurled softball-sized hunks of ice through windows and windshields, damaging homes and vehicles. Oklahoma summers are blistering. from Aug. 1–3, Tulsa experienced three consecutive days of temperatures in excess of 110 degrees Fahrenheit. Oklahoma City broke a 31-year old record, with 63 straight days of 100+ degree highs. Hotter still are the wildfires that make an annual appearance. In August, dry and windy conditions sparked a blaze that decimated more than 1,500 acres near Oklahoma City. it gets cold, too. between Feb. 9–10, 27 inches of snow fell at Spavinaw, setting a state record for snowfall in a 24-hour period. On Feb. 10, the temperature dove to minus 31 degrees Fahrenheit in Nowata. Much more common than snow, however, is ice. In 2009, a remarkable ice storm blanketed most of the state, leaving hundreds of thousands without power from Green Country into northern Arkansas. At some point, regardless of what type of natural elements the earth dishes out, inhabitants of the Sooner State get used to it. but earthquakes? Evidently, the time has come to make room for one more potential natural disaster. Saturday night, at 10:53 p.m., the state played host to a magnitude 5.6 earthquake – the largest in Oklahoma history – along the Wilzetta fault. In the days since, 14 aftershock tremors, ranging from 2.7 to 4.0 in measurement, are listed on the U.S. Geological Survey. On Wednesday, Gov. Mary Fallin declared a state of emergency for 20 Oklahoma counties due to earthquakes, tornadoes, severe storms, straight-line winds and flooding. that begs a question that, until recently, seemed irrelevant: Is earthquake damage covered under a typical homeowner’s policy? the answer is, probably not. “We’ve had several calls about earthquake insurance this week,” said local insurance provider John Rozell. “for current customers, it is simply an add on to their basic homeowner’s insurance.” According to the Oklahoma Insurance Department, earthquake insurance typically must be purchased apart from a standard homeowners policy, either as an endorsement added to the policy by the company that carries the purchaser’s homeowners insurance, or as a separate policy from a company specializing in earthquake coverage. Consumers will also often have to wait a period of time – usually 30 to 60 days – after the most recently reported earthquakes in their area before they can buy new earthquake insurance, due to the likelihood of aftershocks. some companies take into account the location of the temblor’s epicenter. “with most companies, there is a waiting period of 30 days, but the waiting period is enforced on a company-by-company basis,” said Glenn Craven, communications officer with OID. “I would encourage people to call around and shop around, starting with the agent that already has their policy.” Tahlequah resident James Bailey says the cost of earthquake insurance has skyrocketed in recent months. “When we bought our house over three years ago, we got earthquake insurance,” said Bailey. “Two months ago, our provider quit carrying it. now they say we have to go through a different agency to get it. so, it went from $11 per year to at least $150 per year.” with less than 1 percent of Oklahoma homeowners carrying earthquake insurance, however, Craven says this type of scenario is common. “the best place to start is with whoever already insures your home,” said Craven. “Using your current policy holder may qualify you for some discounts. but a lot of smaller companies don’t carry earthquake insurance due to the lack of demand.” Homeowners should be cognizant of what their policies cover, as well. “unlike most other insurance policies, earthquake insurance is very customizable. You need to make sure that you are covering everything that you want covered. for example, providing or not providing coverage for brick or stone veneers on your home.” Earthquake insurance typically carries a substantial deductible, as well. According to Craven, the deductible comes apart from the standard homeowners deductible. Commonly, it is calculated as 5 to 10 percent of the insured property’s value. “In the event of a catastrophe, earthquake insurance would be worth it,” said Craven. “but in most instances, it will likely be cheaper for the home owner to pay for the damages out-of-pocket.” one company that has been selling policies in the wake of the quakes is USAA. An earthquake rider for a $250,000 homeowner’s policy costs about $60 per year, but the deductible would be $5,000. also, USAA only sells policies to current or former members of the U.S. military and their families. Regardless of whether consumers deem earthquake insurance to be a worthwhile investment, one thing is undeniable: the recent onset of these earth trembling quakes has given homeowners across the state something to consider.