MEMBERSHIP
AMPLIFY
EN ESPAÑOL
Connect With Us
- Popular search terms
- Automobile
- Home + Renters
- Claims
- Fraud
- Hurricane
- Popular Topics
- Automobile
- Home + Renters
- The Basics
- Disaster + Preparation
- Life Insurance
2021 Earthquakes: On February 13 a 7.1 magnitude earthquake struck off the coast of Japan’s Fukushima Prefecture near the area of the devastating 2011 quake. According to Aon as many as 4,700 residential structures were damaged or destroyed. Total economic losses were expected to reach into the hundreds of millions of dollars.
2020 Earthquakes: Croatia experienced the strongest earthquake in 140 years on December 29, a 6.4 magnitude quake 50 km southeast of the capital, Zagreb. The Economic Ministry of Croatia estimated that insured losses would be about $63.5 million, a tiny fraction of the $13.7 billion in total losses. In March, an earthquake with a magnitude of 5.3 struck the region north of Zagreb, causing property losses of $1.8 billion according to Munich Re.
In the United States, on January 7, a 6.5-magnitude earthquake struck southwest Puerto Rico, which lies in a tectonically active region. The island had not had a quake of this level since 1918. The 2020 quake caused widespread damage to infrastructure in a region that is still recovering from the effects of 2017’s Hurricane Maria.
2019 Earthquakes: In the United States, the sparsely populated Ridgecrest City section of California was struck by a pair of significant earthquakes in 2019. On July 4 a 6.4-magnitude “foreshock” earthquake hit the area, followed by a stronger 7.1-magnitude quake the following day, along with a number of aftershocks. The 7.1 quake was the largest to hit the state in 20 years. According to Karen Clark and Co., insured losses from the quakes are estimated to total less than $40 million.
2018 Earthquakes: On September 5 an earthquake struck Hokkaido, Japan which left dozens dead and caused more than $1.7 billion in damage, according to Aon. On June 17 another strong earthquake impacted Osaka Japan, resulting in insured losses of at least $935 million.
In the United States, a magnitude 7.0 tremor struck near Anchorage, Alaska on November 30. losses totaled more than $150 million.
2011 Earthquakes: On March 11, 2011 a devastating tsunami hit the coast of northeast Japan, triggered by a powerful earthquake approximately 80 miles offshore. The quake and tsunami caused $40 billion in insured damages when it occurred ($46 billion in 2020 dollars), according to Munich Re. Also, in February 2011 a powerful earthquake struck Christchurch, New Zealand, resulting in $16.5 billion in insured damages when it occurred ($19 billion in 2020 dollars) . The Japan and New Zealand quakes are among the 10 costliest world earthquakes and tsunamis, based on insured damages, according to Munich Re (see table).
The 1994 Northridge quake was the costliest U.S. earthquake on record, causing $15.3 billion in insured damages when it occurred ($28.4 billion in 2021 dollars) according to Aon. The Northridge quake ranks as the eighth costliest U.S. disaster, based on insured property losses (in 2021 dollars). Six of the costliest U.S. quakes, based on inflation-adjusted insured losses, were in California.
($ millions)
|
(1) Includes losses sustained by private insurers and government-sponsored programs such as the National Flood Insurance Program. Ranked on losses in 2021 dollars. Subject to change as loss estimates are further developed. As of February 1, 2022.
(2) Adjusted for inflation by Aon using the U.S. Consumer Price Index.
Source: Aon.
($000)
|
(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.
Standard homeowners, renters and business insurance policies do not cover damage from earthquakes. Coverage is available either in the form of an endorsement or as a separate policy. Earthquake insurance provides protection from the shaking and cracking that can destroy buildings and personal possessions. Coverage for other kinds of damage that may result from earthquakes, such as fire and water damage due to burst gas and water pipes, is provided by standard home and business insurance policies. Earthquake coverage is available mostly from private insurance companies. In California homeowners can also get coverage from the California Earthquake Authority (CEA), a privately funded, publicly managed organization. Only about 14 percent of California homeowners had earthquake coverage in July 2020, according to the CEA.
Twenty-three percent of homeowners who had homeowners insurance responding to the 2020 Triple-I Consumer Poll said they had earthquake insurance, up from 15 percent in 2018. Homeowners in the West were most likely to have earthquake insurance, with 28 percent saying they had the coverage, followed by the South at 25 percent; the Northeast at 21 percent; and the Midwest at 16 percent. See the Poll report for details.
($000)
|
(1) After reinsurance transactions, excludes state funds, such as the California Earthquake Authority, a not-for-profit, privately funded, publicly managed organization that provides coverage in California.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded numbers.
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.