Minor shakes and rattles may not cause much anxiety among Portland, Oregon residents who live along a series of earthquake faults.
But being uninsured for possible earthquake damage to your home could cause major financial stress. If you haven’t checked your homeowner’s policy lately, take a closer look.
Earthquake coverage usually is not automatically included in a home policy. Instead, such coverage can be purchased as an optional endorsement to an insurance policy.
The coverage is available for qualified dwellings and personal property. Earthquake coverage carries a percentage deductible based on the amount of insurance for each applicable coverage amount. For example, if a home is insured for $250,000, the clients would pay the first $25,000 of dwelling repairs with a 10 percent earthquake deductible.
The Pacific Northwest Seismograph Network records more than 1,000 earthquakes every year. Residents actually feel the rumbling effects of 24 of those quakes every year. The last major earthquake in Oregon occurred in 1993 in Portland.
Federal Emergency Management Agency (FEMA) officials predict most future earthquakes will occur in California, Oregon and Washington. Other areas at risk include the New Madrid Seismic Zone in Illinois, Kentucky, Missouri, Tennessee and Arkansas.
Earthquakes have occurred in 39 states and caused damage in all 50 since 1900, according to the Insurance Information Institute. FEMA officials say earthquakes over time have cost $4.4 billion in the United States.
FEMA officials also believe the potential cost of earthquakes will continue to grow as urban development increases in seismically sensitive areas. Portland ranks among the top 40 cities for high loss potential from earthquakes.
Oregon homeowners should check their insurance policies to see if they are covered for earthquake damage, and consider purchasing earthquake coverage.
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