Homeowners claim that insurers are refusing to cover damage caused by earthquakes
Controversy has erupted in Oklahoma’s homeowners insurance sector, and earthquakes are part of the problem. Many homeowners have begun issuing complaints that their insurance providers are refusing to cover damage caused by earthquakes. Oklahoma has been rocked by quakes in recent months, with these disasters becoming somewhat more frequent over the past year. Notably, these quakes may be being caused by injection wells, which are used to extract natural gas from the earth.
Even homeowners with earthquake insurance are seeing their claims rejected
Some consumers have been receiving notifications from their homeowners insurance providers that the damage caused by man-made earthquakes will not be covered by their policies. Notably, these homeowners also have earthquake insurance coverage, which is somewhat rare in the residential sector. Most conventional homeowners insurance policies do not protect against earthquakes, but many consumers in Oklahoma have purchased additional coverage due to the growing frequency of earthquakes.
Issue may become a legal nightmare for homeowners insurance companies
Homeowners issued concerns regarding the matter last week at a state committee. Legal experts have been analyzing the issue, suggesting that homeowners insurance companies may be failing to adequately inform consumers of their policies. Some suggest that the issue could become a legal nightmare for insurance companies and, to some extent, companies that specialize in the extraction of natural gas.
Insurance Commissioner Doak encourages consumers to acquire earthquake insurance
Oklahoma Insurance Commissioner John Doak notes that earthquake insurance is becoming more important for consumers. The majority of homeowners in the state still lack this sort of protection, leaving them exposed to earthquakes that can cause damage to their properties. Homeowners are being encouraged to contact their insurance providers in order to determine whether or not they have the appropriate level of coverage. For many, however, the additional cost of earthquake insurance may be somewhat unattractive, especially in a state that is not known to have many of these disasters. Injection wells have lead to a higher frequency of quakes, however, which may soon make earthquake insurance a very important form of protection for homeowners.