Agents Fielding More Calls About Quake Coverage
|By Jessica Miller, Enid News & Eagle, Okla.|
|McClatchy-Tribune Information Services|
"We are seeing an increase, definitely, of calls, with all the increased activity,"
A number of agencies sell added endorsements for existing homeowners policies, while other insurance agencies sell separate policies.
"We've contacted our current customers and let them know that (earthquake coverage) is available and that it does not come standard with the policy but it can be endorsed," Crow said. "Any new business that we write, we of course recommend it. It's very, very affordable. So, for the little amount of money that they typically do cost, it kind of seems like a no-brainer to me."
Crow said 60 percent of his policyholders have either added or purchased earthquake insurance.
In the past few months, several earthquakes -- 3.0 magnitude or stronger -- have occurred near
"I haven't seen a significant increase, it's just been kind of steady, people inquiring," he said. "Of course, it kind of comes in spurts from time to time.
"Years ago, we used to endorse it on homeowners policies, and, of course, it wasn't an item that people requested or we added or quoted along with policies. Of course, (with) the increase in the number of earthquakes we've had ... it has been just recently a requested item."
"More people are asking about it but, you know, there (are) a lot of companies that won't do earthquake (coverage) here in
"Not as much as you'd think,"
"It's not doing much up around here."
Hood said the problem with the coverage is the deductibles are so high, most homeowners do not purchase coverage.
"(Deductibles) start out at either two percent of the value of the house, or
Hood writes policies for about eight major companies, about half of which offer earthquake coverage as an endorsement.
"There is a company that offers it as a standalone product, but it's, oh goodness, it's about a 5 percent minimum deductible," he said. "It's a little bit pricey."
"I've had inquiries wanting to find out how much it was going to cost," he said. "It's probably more in the last six months than what we did in the previous two or three years. Yes, there has been more interest."
"We've had a large influx of earthquake inquiries to our office," said
"It's based on what we have their house covered for, and it comes with a separate deductible," she said.
Most customers who inquire about coverage are purchasing it because it is "pretty affordable," according to Johnson.
"Most people are just doing it as a precautionary measure," she said.
"It actually comes in spurts," she said, adding that the agency gets more calls after 3.0 magnitude or stronger earthquakes.
While coverage is "fairly cheap," Christy said the deductible on the coverage is anywhere from 2 to 10 percent of the amount of purchased coverage.
None of the agents reported having received a claim for earthquake damage.
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