TheGannAgency

Earthquake Insurance Is Financial Preparedness - Do You Have It?

Posted by Nick Gann

Apr 19, 2014 6:30:00 AM

We had a guest speaker at church a few Sundays back. He said many things that were like nuggets to me. But he said one thing that made me think of insurance. Earthquake insurance to be exact. Natural disasters come in spurts, maybe not spurts, but they seem to space themselves out in a manner that makes sense once it happens.

In 1964, Alaska had what they refer to as the Great Alaska Earthquake. A 9.2 magnitude shake-up that wreaked havoc on Anchorage.

do_I_need_earthquake_coverage_in_arkansas

What most people don't know is that of the 139 deaths, 124 were by water. That's right. Water is already one of the most powerful forces on the planet. Add an earthquake to the mix and that's like putting the ocean in a blender.

Remember the 2004 tsunami in India:

water_damage_due_to_an_earthquake

Over 230,000 people lost their lives because of the power of water.

But we live in Arkansas, why should we worry about the ocean taking lives during an earthquake?

We shouldn't. Not the ocean. But let me show you a few things you should worry about:

do_I_need_earthquake_insurance_in_arkansas

But we're talking about earthquake insurance, not flood. That's right. If an earthquake causes flood damage to your home, then you had better have flood coverage... or earthquake coverage. My bet is you have neither.

The only folks buying flood insurance are those in a hazardous flood zone, and because their mortgage requires it.

People, there's an earthquake coming. No doubt in my mind. And I don't think it's far off.

According to EarthquakeTrack.com, the United States has recorded over 13,000 earthquakes in the past 12 months. Thirteen thousand! And a 6.8 and 5.1 in California.

I'm not worried about California. I'm worried about Arkansas. We live too close to the New Madrid fault line. Way too close.

Heber Springs had 2 earthquakes on April 18, 2014. Fairfield Bay on 4/14 & 4/17. Black Rock, Freeport, Lapanto, & Demascus all in March.

Are we ever caught off guard by a natural disasters? Almost always.

The guest speaker at my church said "Everything can change in an instance. You better be prepared!"

Earthquake insurance, even flood insurance, isn't that expensive. Will you be one of the few standing after an earthquake hits? Not if you don't prepare.

Don't be the person who says "I can't believe I passed on coverage that was only a couple hundred dollars. I could have avoided this financial disaster."

You're right. It could easily be avoided. Here's how:

1) check your current homeowners insurance policy or call your agent - do you have coverage

2) do you need to include the brick/masonry? Not really, just know it's not covered

3) do you need a low deductible? No! A high deductible is better than no coverage

4) if your homeowners insurance is escrowed your earthquake endorsement will be paid with that

The average price of an Arkansas home is $140,000. That means your approximate debt will be that amount times 2. Why times 2? Because you'll still owe your mortgage and you'll need somewhere to live.

But I'll rent. That's fine. The average rental home in Arkansas goes for $800/month. You'll still owe your mortgage on the earthquake-damaged home and you'll owe the $800 rent.

You can head this problem off by having the coverage.

Earthquake insurance is financial preparedness. Do you have it?

Don't let your life be shaken up by not having the coverage you need. Prepare yourself. That's what insurance is for.

My name is Nick, and I'm the owner of The Gann Agency.

Have more questions about earthquake insurance? Email me. I'm here to be a servant. Insurance allows me that opportunity.

Email Nick

    

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