Chicago, IL (PRWEB) February 06, 2013
PCI Urges Participation in Fantastic Shakeout Earthquake Drills
Although earthquakes often do not come to mind when a single thinks of the Midwest and South, it is in fact 1 of the most volatile seismic zones in America. That is why the Property Casualty Insurers Association of America (PCI) urges Americans to participate in Great Shakeout earthquake drills Thursday across the central United States.
Thursday’s Excellent Shakeout requires spot in Alabama, Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, Oklahoma and Tennessee. Details can be located on the Internet at: http://www.shakeout.org/centralus/.
Men and women, organizations, and schools across the country should use the Excellent Shakeout as an opportunity to test lifesaving earthquake preparedness expertise, stated Christopher Hackett, PCI director of individual lines policy. It is also a wonderful reminder that we ought to also test our monetary preparedness by contemplating the threat our properties or companies face in the event of an earthquake.
PCI encourages everyone to be ready for earthquakes, the least predictable of possible natural disasters. With population growth in locations of intense seismic activity, the risk of catastrophic loss of life and house damage continues to swiftly improve. According to the Federal Emergency Management Agency (FEMA), it is estimated that a main earthquake in a highly populated region of the United States could result in upwards of $ 200 billion in losses. Regardless of facing this significant danger, several Americans do not obtain earthquake insurance coverage. For example, even in earthquake-prone California, only 12 percent of property owners purchase earthquake insurance coverage.
The area participating in the Great Shakeout on Thursday was the website of a series of some the largest recorded earthquakes in U.S. history, the New Madrid, Mo., earthquake and aftershocks of 1811-12, Hackett mentioned. The seismic activity was so great that it caused minor damage as far away as Washington, D.C., and reportedly triggered church bells to ring as far east as Boston.
The region was sparsely populated at the time of the New Madrid quakes, but according to a Federal Emergency Management Agency (FEMA)-funded study by the Mid-America Earthquake Center at the University of Illinois, a equivalent occasion right now would result in nearly $ 300 billion in damages, displace 7.2 million individuals and cause about 86,000 casualties. And despite the fact that there hasnt been an event of that magnitude because, seismic activity demonstrates the regions earthquake threat remains active.
The New Madrid seismic zone and surrounding areas stay an active earthquake threat. Earthquakes in Oklahoma in 2011 registered 4.6 and five.7 on the Richter scale, and the Center for Earthquake Investigation and Data at the University of Memphis has recorded almost 4 dozen minor quakes in the area, ranging from .four to four.1 on the Richter scale, given that Jan. 1st, Hackett stated.
In spite of the ongoing threat, a lot of individuals dont realize that earthquake coverage is not included in a common homeowners insurance coverage policy. Home owners in earthquake prone areas need to think about their danger and think about purchasing this extra coverage to protect their most expensive asset–their property.
The common homeowners policy does not cover losses that outcome from earthquakes due to the unpredictability and widespread catastrophic nature of these events. In addition, it is critical to note the regular home owners policy also does not cover landslides, mudslides or sinkholes. Coverage is normally available as an endorsement to the homeowners policy or below a separate policy.
Earthquake insurance is created to supply coverage for catastrophe losses. Buyers are protected from the damage caused by the shaking that outcomes from the movement of the earth. The deductible for earthquake insurance coverage varies primarily based on the policy and the insurer. These deductibles are normally based on a percentage of the replacement worth of the property. The deductible can variety from two to 25 percent of the home’s replacement worth. In California, the normal deductible is 15 percent. Nevertheless, for an extra fee customers can now reduce their deductible to ten percent and raise the limits for contents and loss of use to $ one hundred,000 and $ 15,000 respectively.
Earthquakes are a risk from Alaska to Maine, mentioned Hackett. We hear a lot of reminders to prepare physically for earthquakes which includes storing food and water, bracing water heaters and bookshelves, but it is equally crucial to speak to your agent or insurance firm and assess your monetary danger.
PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members create more than $ 190 billion in annual premium, 40 % of the nations house casualty insurance. Member companies write 46 percent of the U.S. automobile insurance coverage market, 32 percent of the homeowners market, 38 percent of the commercial house and liability marketplace, and 41 % of the private workers compensation market.
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