Here’s why earthquake insurance rates are rising in the South

Many consumers and agents have noticed significant increases in their earthquake insurance premiums, and a state commissioner has confirmed two separate 100% rate increase requests

Insurance News

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The increasing number of higher magnitude earthquakes in Oklahoma—including three strong events within 24 hours last week—might be rapidly inflating insurance rates all over the state, according to the insurance department.
 
Between April 26 and 27, central Oklahoma registered events with magnitudes measured at 2.8, 3.7, and 4.1.
 
The Oklahoma Insurance Department announced that it would schedule a hearing with insurance companies and the public by the end of May to discuss rate increase requests from policy providers. The insurance department said that it has received 16 of these appeals since 2014, with two of them even asking for a 100% hike.
 
“We’re not saying which companies right now, because they have not, we have not finalized those rate filings,” said department official Buddy Combs, as quoted by KFOR.com.
 
Earthquake insurance plans have been seeing increased popularity among Oklahomans, although some consumers remain skeptical of what these policies can actually do in case of a major event.
 
“It’s not worth it. It isn’t going to cover anything. Not right now, not unless they improve it and change it,” according to Luther resident Barbara Weidell, who experienced a magnitude 3.7 quake in her area on April 27.
 
“It feels like a jagged thing. It goes whomp, whomp, whomp, whomp. And, you just feel it go boom,” said Weidell.
 

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