Earthquake Hazards in the United States
Although the West Coast and Alaska tend to have the largest earthquake, earthquake potential exists almost everywhere in the United States. Active areas in the Midwest include: 1) A new seismic zone in Madrid in southeastern Missouri, which can affect eight states: Alabama, Arkansas, Illinois, India, Kentucky, Mississippi, Missouri and Tennessee; and 2) the Wabash Valley seismic zone along the Illinois-Indiana border, which will affect three states: Illinois, Indiana and Kentucky. In the Eastern United States, another Charleston area in South Carolina is another active region.
California and Midwest Earthquake Prediction
In California, a probability of 99.7% has a moment Mw = 6.7 earthquake (the same as the Northridge event) for the next 30 years. The southern segment of the San Andreas Fault has the highest probability of creating such an earthquake in Southern California with a 67% chance of hitting the Los Angeles area, while the Hayward Fault is the most likely source of earthquakes in Northern California with a 63% chance of hitting San Area Francisco. Larger earthquakes are less likely during the same time period; 94%, 46% and 4.5% for Mw = 7.0, 7.5 and 8.0, respectively. On the other hand, the probability of a new earthquake in Madrid Mw = 6.0 or higher in the next 50 years is 25-40%, and the repetition of 1811-1812 earthquakes Mw = 7.7 is 7-10% in accordance with the United States Geological Survey. However, most structures in the Midwest were not built with earthquake earthquakes. Moreover, awareness and preparedness for earthquakes in the Midwest have lagged far behind the west coast.
What if your house is destroyed or partially damaged?
Many people mistakenly believe that the United States government will take care of all its financial needs if they are hit by an earthquake, which is not true. In fact, federal disaster relief programs are designed to help you get back on your feet, but not replace everything that you’ve lost. At the same time, homeowners insurance does not cover the earthquake of your home and property. Therefore, most of the damage caused by an earthquake will eventually be processed and paid for by you. In addition, you are still responsible for your existing debts, such as mortgages, car loans, and credit card payments, even if your house is destroyed or partially damaged.
How to protect your assets and investments?
If you own your home, this is probably your biggest financial asset. You worked hard to protect your part of the American dream to become a homeowner. Your assets and investments made in personal items may be at risk when an earthquake occurs, as your home is likely to have some level of damage. How do you plan to protect these assets and investments from the costs of devastating earthquakes? Earthquake preparedness plans, which include upgrading your home and mitigating its contents, are effective ways to protect against earthquakes. Another option for managing potential costs is to buy earthquake insurance.
Earthquake insurance
Earthquake insurance provides coverage for an earthquake that can destroy your home, business and personal belongings. Other types of damage that may occur as a result of earthquakes, such as fire and water damage due to the explosion of gas and water pipes, are covered by standard homeowners and business insurance policies. On the other hand, cars and other vehicles are covered for earthquake damage only as part of a comprehensive auto insurance policy. The states of California, Washington, Missouri, Tennessee, Oregon, Illinois, New York, Kentucky, Florida and Indiana are the 10 largest earthquake insurance markets. Earthquake insurance premiums vary greatly in location, insurance company and building material of your home. Older buildings are more expensive than newer ones. Timber frame structures benefit from lower velocities than non-reinforced masonry buildings, as they tend to earthquakes better than earthquakes. A timber frame house in the Northwest Pacific Ocean costs $ 1–3 for $ 1,000, but less than $ 0.50 on the east coast, and an unfortified brick house costs $ 3–15 for $ 1,000 in the Pacific Northwest, but $ 0.60 - $ 0.90 in New York.
Do you need earthquake insurance?
A wise decision on insuring earthquakes is crucial if you live in an active seismic region. My family and I survived the 1995 Kobe earthquake because I decided to live in a relatively new reinforced concrete apartment building, despite the fact that the rent was higher than traditional Japanese wooden houses. The three-story main building is still in the wake of the earthquake, except for the expansion, which partially collapsed, while many of the surrounding traditional houses collapsed. However, the contents of the apartment were damaged, including a refrigerator, a microwave and a large TV. Answers to the following questions can help you decide if earthquake insurance is right for you:
- Do you know the plausible danger of an earthquake at home?
- How much does it cost to repair / rebuild your home?
- Can you afford to pay the mortgage, and also pay for the repair / restoration of your home?
- Can you afford to lose your net worth?
- How much would it cost to replace your expensive home items (furniture, computers, HDTV, refrigerators, etc.), if they were destroyed?
- How much will the cost of temporary residence, if you can not live in your house after an earthquake?
Interesting facts about earthquake insurance
It's amazing to know that only 12% of California residents currently suffer from earthquake insurance, from 33% in 1996, when the devastating Northridge earthquake in 1994 was still fresh in people. On the other hand, 35% of homes in Missouri are covered by an earthquake that seems reasonable.
Final note
January 9, 2010 a powerful earthquake in Northern California in Northern California Mw = 6.5 caused moderate damage to the city of Eureka and in other areas of Humboldt County. A few days later, on January 12, 2010, a catastrophic 7.0 earthquake stuck in Haiti, which is considered one of the deadly earthquakes in the past four decades. These earthquakes trigger calls for people living in active seismic regions to reconsider the possibility of modernizing their homes and mitigating their content to protect themselves and their families; develop, update or maintain their earthquake preparedness plans; and reconsider the purchase of earthquake insurance to manage the potential costs of future inevitable earthquakes.
