Earthquake Insurance
In the wake of the tragic Haiti earthquake, you may wonder what would happen if an earthquake struck closer to home. Would your homeowner’s insurance policy cover your home if it was destroyed by an earthquake? For most homeowners, the answer is “no.” Unfortunately, the standard homeowner’s insurance policy excludes earthquake losses. Similar to a flood risk, earthquake is considered too high of a risk to be covered by standard rates.
Liberty Mutual is one of the few companies that offers earthquake insurance in Hawaii. However, very few of our policyholders choose to add this coverage to their policies. The premium is quite expensive and the deductible is very high.
Read the following article for safety tips and more on earthquake insurance:
Consider Buying Earthquake Insurance
Images of desperation and despair continue to pour out of Haiti in the wake of its devastating earthquake last month, killing over 200,000 people and directly impacting over 3 million of its people. This earthquake also serves to remind Americans of their exposure to this peril as well. Records dating back to 1900 reveal that earthquakes have occurred in all 50 states and caused damage in 39 of these states. The Federal Emergency Management Agency (FEMA) released a major study in 2000 indicating that U.S. earthquake losses over time could average $4.4 billion a year.
So the following question naturally arises: what is your exposure to an earthquake? Research indicates that residents in California, Oregon, and Washington are most at-risk. However, parts of Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, and Tennessee are also quite exposed to earthquakes. The New Madrid Seismic Zone runs under these states and, though it occurred long ago, gave rise to one of the largest magnitude earthquakes to ever hit the United States.
If you live in any of these states, you should ascertain your proximity to an earthquake fault zone. California residents can determine their exposure by visiting the State of California’s Department of Conservation Web site, which provides a list of affected cities and counties. For other state-specific information, visit the U.S. Geological Survey Web site.
Most homeowners policies specifically exclude earthquake losses, just as they do flood losses. Therefore, if you live near an earthquake seismic zone, consider purchasing a separate earthquake policy or an earthquake endorsement attached to your homeowners policy. In addition, the following are some steps to take that will reduce your chances of injury or property damage resulting from an earthquake.
- Verify that operational fire extinguishers are strategically located on each floor of your home.
- Anchor tall furniture, refrigerators, water heaters, and bookcases securely to the walls.
- Utilize flexible connectors for gas supply to gas-fueled appliances.
- Keep beds away from glass or any hanging object that might fall.
- Verify that your home’s roof and chimney are well-maintained, with proper support.
- Apply safety film to windows and glass doors.
- Add anchor bolts or steel plates between the home and its foundation.
- For older homes, work with a civil engineer or city building department to verify that your home is up to code for the earthquake peril.
- Communicate to family members an emergency meeting place should your family get separated during an earthquake.
If you are in your home when an earthquake occurs, stay inside and move away from windows, skylights, doors, and objects that might fall. Crawl under a sturdy item such as a large table or desk. Stay where you are until the shaking stops.
Get more personal lines insurance and risk management tips and ideas from IRMI.
Copyright 2010
International Risk Management Institute, Inc.
Dog Bites
For Christmas, we bought a puppy for our two daughters. He is a Jack Russell/Chihuahua mix. One of the reasons we bought him is because we already had a Jack Russell. We thought it would be a good idea to get a playmate for our Jack Russell. So far, things are working out. Sure, the puppy often irritates the Jack Russell. But they also play nicely together.
If you also own a dog, do you know what to do if your dog bites someone? Each year, 4.5 million people are bitten by dogs in the United States. And 18% of these injuries require medical attention. If you have a homeowner’s insurance policy, dog bites may be covered under the liability section of your coverage. Still, as a dog owner, you would probably like to minimize your exposure. Check out the following article for some helpful tips.
Take Steps To Prevent Dog Bites
Did you know that dog bites cause about 800,000 injuries requiring immediate medical care in the United States each year? This statistic is based on research conducted by the Centers for Disease Control and Prevention (CDC). If your dog bites someone, you can be held legally liable. Fortunately, this loss is usually covered by the homeowners policy, with some exceptions. In fact, about one-third of all liability insurance claims paid by homeowners policies are for dog bites! Even if your insurance covers the claim (and possibly the lawsuit), however, imagine the personal grief you and your family would feel for the injured friend, not to mention the time and trouble you would incur in cooperating with your insurer in defending against the claim, following a tragic event involving your pet.
Therefore, preventing such an unfortunate occurrence should be your primary objective, and there are steps you can take to reduce or prevent dog bites. Here are some suggestions from the professionals.
- Carefully consider dog breeds prior to selecting a pet. Some breeds have worse reputations than others, and a veterinarian can help you decide which breeds might best fit your lifestyle.
- Spay or neuter the animal as this often decreases the aggressiveness of dogs.
- Seek a veterinarian’s advice quickly if your dog becomes aggressive.
- Socialize your dog from an early age to encourage appropriate behavior.
- Never leave dogs alone with small children.
- Avoid aggressive games with puppies and dogs, such as tug-of-war.
- Do not place your dog in situations where he or she can be teased or feel threatened.
- Train your dog to obey commands.
- If your dog does bite someone, a board-certified plastic surgeon should treat this person to minimize scarring and potential disfigurement.
There is one other loss exposure concerning dogs you should consider. You may face liability claims if your dog gets out into the road and causes or contributes to an auto accident. You can be sued for violation of leash ordinances by allowing your dog to “run at large.” Use a well-maintained and sturdy fence or other safeguards to reduce this exposure.
And, if your dog does injure someone despite all your efforts to avoid it, report it to your insurance company immediately to assure your coverage is not jeopardized for late reporting.
Get more personal lines insurance and risk management tips and ideas from IRMI.
Copyright 2009
International Risk Management Institute, Inc.
If you have questions about your homeowner’s insurance policy, feel free to contact me.
