Despite the May 2003 earthquake centered in Blytheville, Ark., area residents still have availability of earthquake insurance in the region. With another earthquake impacting the New Madrid fault zone on February 10, 2005, there could be less availability of earthquake insurance for the region.
A small earthquake centered in northeastern Arkansas rattled parts of several states but caused no major damage.
Shaking was felt as far away as Memphis, Tenn., and in Mississippi casinos. Window blinds and doors shook and swayed, pictures fell from the walls and telephone service was briefly interrupted in one small town in Arkansas.
The quake hit at 8:05 a.m. about four miles east of Caraway. Over the course of the day, the U.S. Geological Survey gave varying magnitudes for the quake — from 3.9 to 4.2. The quake was centered in the New Madrid seismic zone, which covers portions of Arkansas, Missouri, Illinois, Kentucky and Tennessee. One of the largest earthquakes ever to strike in North America, estimated at magnitude 7.5, was centered at New Madrid, Mo., during a series of temblors in the winter of 1811-1812.
In the late 1990's despite no earthquake events, "Prices did go up for a lot of companies and deductibles have changed," noted Steve Deere of Allstate Insurance. "Deductibles used to be about 2 percent and now theyre anywhere between 10 and 15 percent."
Despite the increased rates and deductibles by the state over 2002, Deere admitted less than 10 percent of property owners and renters actually refuse the additional earthquake coverage offered with homeowner's and renter's policies. Older homeowners may choose not to carry earthquake insurance, but theyre in the minority, he added.
While Cravens Insurance Agency owner Jim Cravens said there hasn't been an influx of people wanting earthquake insurance since recent earthquakes, ("You're about 12 years late," he said) there hasnt been a decline either.
"There are some companies who don't offer earthquake insurance. Some stopped back in 1990 after the prediction for the big New Madrid Fault earthquake never happened," Cravens explained.
Earthquake coverage varies a great deal in type and cost, explained Sharon Bryant, an agent for State Farm Insurance. State Farm does earthquake endorsements on any home, and with commercial property, seismic guidelines by code are applied. Things like building structure — if it's frame or masonry — also make a difference, she added.
According to Federal Emergency Management Agency, the New Madrid Fault is the most seismically active region in the United States east of the Rockies. Since 1974, seismic detection instruments in the New Madrid Fault have recorded over 4,000 earthquakes.
Farmers Insurance has never paid an earthquake claim anywhere in the New Madrid area. State Farm has not paid a claim in the last five years.
In Missouri, according to an analysis by the state department of insurance, 59 percent of homeowners in areas near the New Madrid fault and 42 percent statewide bought quake coverage in 2002. The high percentage may be explained by the fact that coverage in the state is relatively inexpensive (38 cents per $1,000 of coverage statewide and 76 cents per $1,000 in high-risk areas). Recent research puts the location of the Midwestern earthquake about 130 miles from St. Louis, closer than originally thought. Growing amounts of business came from other states as well including New York, Texas, Florida, Georgia, Massachusetts and Pennsylvania.
The New Madrid Fault zone lies within the central Mississippi valley extending from northeastern Arkansas through southeastern Missouri, western Tennessee, Kentucky and southern Illinois. The last major earthquake, magnitude 8, occurred there in 1812. But scientists warn that this was not a freak occurrence. Earthquakes in Central and Eastern United States affect much larger areas than earthquakes of similar magnitude in the West. For example, the San Francisco earthquake of 1906 was felt 350 miles away, whereas the New Madrid earthquake of December 1811 rang church bells in Boston, Massachusetts, 1,000 miles away.
| Companies writing quake
coverage in Arkansas |
Companies writing quake
coverage in Mississippi |
| Farm Bureau Mutual Insurance Co. |
State Farm |
| State Farm |
Southern Farm Bureau Casualty |
| Houston Casualty Group |
US Fidelity & Guaranty Group |
| Allstate Insurance Group |
Nationwide |
| St. Paul Insurance |
W. R. Berkley |
| Nationwide |
Allstate |
| Shelter Insurance Co. |
Lumbermans Mutual Casualty Group |
| Farmers Insurance Group |
State Auto Mutual Group |
| State Auto Mutual Group |
Zurich Amerian Insurance Group |
| USAA Group |
Travelers |
| Companies writing quake
coverage in Illinois |
Companies writing quake
coverage in Missouri |
| State Farm |
State Farm |
| St. Paul Insurance |
Farmers Insurance |
| Farmers Insurance |
American Family Insurance Group |
| Allianz Insurance Group |
Travelers |
| Allstate Insurance Group |
Allianz Insurance Group |
| Houston Casualty Group |
SAFECO Insurance Group |
| Zurich American Insurance Group |
Shelter Insurance Co. |
| Hartford Fire & Casualty Group |
Chubb & Son |
| Netherlands Insurance Co. |
St. Paul Co. |
| Markel Corporation Group |
Allstate |
| Companies writing quake
coverage in Indiana |
Companies writing quake
coverage in Tennessee |
| State Farm |
State Farm |
| Netherlands Insurance Co. |
Allstate |
| Allstate Insurance Group |
CNA Insurance Group |
| Farmers Insurance Group |
Nationwide |
| Westfield Co. |
Travelers |
| Auto-owners Group |
USAA Group |
| Zurich American Insurance Group |
Grange Mutual Casualty |
| Commercial Union Insurance Co. |
St. Paul Co. |
| American Family Insurance Group |
State Auto Mutual Group |
| Prudential |
SAFECO Insurance Group |
| Companies writing quake coverage in Kentucky |
| State Farm |
| State Auto Mutual Group |
| Allstate Insurance Group |
| CNA Insurance Group |
| Ohio Casualty Group |
| Grange Mutual Casualty |
| Netherlands Insurance Co. |
| Nationwide |
| Westfield Co |
| Travelers |
Source: Insurance Information Institute
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