Whoa, was that another earthquake???

Guest post:

Better check Facebook and Twitter to verify!  I know this is what I typically do when I feel the ground shake!

As Oklahoman’s this is something we never thought we would have to deal with, but unfortunately this is quickly becoming a reality in Oklahoma.  Rightfully so, people are growing concerned for their safety and the condition of their property.

Another insurance to buy right?  After looking into it,  most people have found out that earthquake damage is not typically covered under their home insurance policy.  You can add an “earthquake rider” to your policy to provide you coverage, however it does have a few nuances.  The details:

  • It does come with a separate deductible from your policy. The deductibles are going to be higher than normal and is a percentage of the value of the dwelling.  I.e. $250,000 home x .05% deductible = $12,500.  I have seen the deductibles vary from 2%-15%.
  • Ask if masonry veneer (brick) damage is covered by the rider.  Many companies do not include that coverage on the rider, which is a major issue in Oklahoma!
  • Premium is typically pretty affordable.  For example,  my company is $25/per $100,000 of coverage.  Example:  a $300,000 house premium is $75/year.
  • Companies will go on a moratorium if there is major earthquake in a given area.  My company exercise that option after a 5.0 magnitude or greater earthquake.  The moratorium will typically last anywhere from 30-60 days depending on the following  tremors.
  • Many companies will not offer coverage for homes that are 1940 or older.

The next time you feel that ground shake, have the peace of mind knowing your home is protected with earthquake insurance!

If you have any questions, need advice, or would like counseling feel free to contact me!

Reg Aldrich

Country Financial Representative

Home, Life and Auto Insurance plus Financial Planning



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