Recent quake leads to spike in interest for insurance coverage
Demand for earthquake insurance is on the rise in Kansas. The state’s insurance agents are reporting that more people are becoming interested in coverage for natural disasters. Since a 4.8 magnitude earthquake struck the state last week, several insurance agencies have been receiving queries about the type of coverage they have to offer that can protect against such disasters. This new trend represents the most significant attention that earthquake insurance has received in the state in recent history.
State is looking for a link between hydraulic fracturing and earthquakes
Earthquakes are not overly common in Kansas. This year, however, the state has been hit by several dozen of these disasters, which has some homeowners and businesses concerned about the damage that could be caused to their properties. State officials are looking into the cause of these earthquakes, as there is growing concern that these disasters could be linked to hydraulic fracturing, which is the process of drilling for oil and gas. Previous investigations into the matter claimed that there was not enough evidence to link the two together, but some state officials are not convinced that is the case.
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Additional coverage may be an expensive form of protection for homeowners concerned about earthquakes
Though earthquakes are not common in Kansas, there is no shortage of policies that can protect against these disasters. Many homeowners are encouraged to add earthquake protection to their existing policies, simply because it is a relatively inexpensive form of protection. Adding earthquake coverage to an existing homeowners insurance policy could add $35 to $100 in annual insurance costs. Typically, earthquake coverage comes with deductibles of 2% and 5%.
Earthquake insurance must be purchased as supplemental coverage, added on to an existing homeowners insurance policy
Some homeowners believe that their existing insurance policies are enough to protect against the damage that an earthquake can cause. This is not the case, however, as most homeowners insurance policies do not offer earthquake protection as baseline coverage. Additional protection must be purchased as a supplement to an existing homeowners insurance policy.