Japan is in the midst of the most catastrophic disaster in recent history. On Friday, the nation suffered a magnitude 8.9 earthquake that was the most powerful geological event in the region in millennia. The quake triggered powerful tsunamis that invaded the shores of Japan and caused grievous damages to the Northern provinces. While the earthquake threatened to tear apart the nation’s foundations, the unrelenting tsunami washed away everything it its path. Insurance companies are struggling to fathom the cost of the disaster. Initial estimates claim that more than $35…
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Earthquake insurance rates set to increase in certain areas
Spurred by news of recent earthquakes that rocked New Zealand and Chile, as well as tumblers felt in the United States, State Farm has been raising their rates for earthquake coverage. The recent wave of tremors in Arkansas has provoked the insurer to make the first significant raise in its rates in the state in 15 years. The premiums were unchanged from 1997-2007. Adjustments were made in 2008 and again in 2010, but were relatively minor. Spokesman for State Farm, Gary Stephenson, says that insurance premiums change all the time.…
Read MoreMissouri residents are underinsured
Missouri just held an event noting the 200 year anniversary for the New Madrid earthquake. John M. Huff, the acting director Missouri’s Department of Insurance, spoke at said event to help bring awareness to the weak number of homes that actually have earthquake insurance within the state. He has also has expressed in the past, that there’s a large percentage of homeowners that will not be accurately protected if an earthquake happens these days. Huff’s concern is, that over the past ten year’s the amount of earthquake policies purchased has sharply decreased and the ones that do have…
Read MoreNew Zealand insurance companies are rallying after major earthquake
Insurance companies are rallying together on the heels of a devastating earthquake that rocked the New Zealand city of Christchurch. They are expected to pay millions in claims. Chris Ryan, the chief executive for the Insurance Council of New Zealand, says that it is difficult to estimate the total cost of the quake as the buildings that collapsed were damaged by a previous earthquake in September of last year. A powerful earthquake struck Christchurch during its lunchtime rush. The magnitude 6.3 quake toppled office building, flattened homes and at least…
Read MoreWill The Catastrophe Obligation Guarantee Act Help Lower Earthquake Rates in California?
The Catastrophe Obligation Guarantee Act was introduced in Congress back in 2009. The bill would authorize the federal government to provide committed loan guarantees to qualified insurance companies, California Earthquake Authority being one. The CEA, commonly known as, is a non-profit catastrophe insurance company that currently insures approximately 70% of earthquake exposure for households in California. The reason this act is so important to the market and to disaster relief associations is with this guarantee the CEA will be able to lower their reinsurance thus being able to pass along…
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