Earthquake Damage Claims
Unlike damage suffered from tornados and hail, earthquake claims are a relatively new threat to those of us here in Oklahoma. Over the past 10 years, many Oklahomans have added earthquake coverage to our homes. As with the threat posed by tornados, we all want to protect our most valued asset: our homes.
Recognizing the threat of earthquakes and the need for Oklahomans to now have such coverage, the insurance companies made the decision to sell earthquake coverage, and sell it hard, in Oklahoma.
As earthquakes have increased over the past 5–6 years, the premiums for our earthquake coverage have skyrocketed. As with tornados and hail, insurance companies are now once again changing the rules and deductibles under which they will pay.
Most claims for earthquake damage here in Oklahoma are routinely denied for one reason or another. Insurance companies consistently claim damage to foundations, brick exteriors, driveways, etc. are merely the result of pre-existing earth settlement and therefore excluded under the terms and conditions of the policy.
The insurance companies know full well homes in Oklahoma are not designed or built to withstand earthquakes. Moreover, our residential building codes do not require construction with earthquakes in mind. Again, both of these facts were well known to the insurance companies when the policies were marketed, sold, and the premiums taken in. Nonetheless, such claims are being denied because they arguably can result in the home being structurally unsound requiring the home to be totally rebuilt. For if the home’s foundation is affected by the earthquake(s), the home must be restored to its pre-loss condition.
Recognizing, the seriousness of these claims, many insurance companies have recently adopted the “take the money and run” approach. Namely, discontinue writing any more earthquake policies in Oklahoma and systematically cancel those who already possess such coverage as soon as the law will permit them to do so. Many Oklahoma policyholders have already received letters notifying them their particular insurance company will no longer be writing such coverage in our state and will soon be cancelling their earthquake coverage, and perhaps referring them to other affiliated companies for such coverage. Such an exit strategy, however, does nothing to relieve your insurance company of being responsible for paying your claim.
If you believe your home was damaged by an earthquake and your claim was denied for any of the reasons noted above, you ARE entitled to recover. Whether or not your insurance company currently writes such coverage in Oklahoma is irrelevant. If you were insured at the time your home was damaged, you are entitled to recover for your claim.
1973-07/06/2017 Oklahoma Earthquake Map
