When we founded TLR in 1994, we could not have imagined that our continued commitment would be required 15 years later … but we are here only out of necessity. I am grateful for your continued support.
Dick Weekly Co-founder, Chairman, CEO Texans for Lawsuit Reform, Houston
Haiti Quake a Reminder of U.S. Vulnerability
continued from page 1
Earthquake insurance policies often carry a deductible, generally in the form of a percentage rather than a dollar amount. Deductibles can range anywhere from two percent to 20 percent of the structure’s replacement value. This means that if it costs $100,000 to rebuild a home and the policy had a two percent deductible, the policyholder would be responsible for paying the first $2,000.
In California, homeowners can also secure coverage from the California Earthquake Authority (CEA), a privately funded, publicly managed organization. The CEA offers homeowners dwelling coverage deductibles of either 10 or 15 percent. The CEA coverage limit is the insured value of the home as stated on the companion homeowners insurance policy.
Earthquake insurance premium rates are determined differently by each insurance company and can vary widely depending on several factors, such as the location of the building and the construction materials used in its construction.
U.S. Earthquake History The severity of January’s Haitian earthquake is being compared to that of the quake that struck Haiti in 1842, killing thousands, but few realize that the U.S. also was rocked by a major quake in the 19th century.
The New Madrid earthquake of Decem-
ber 1811, one of the largest in U.S. his-
tory, had its epicenter in Missouri, and
ended up ringing church bells in Boston,
more than 1,000 miles away. The New
Madrid Fault zone lies within the central
Mississippi valley extending from north-
eastern Arkansas through southeastern
Missouri, western Tennessee, Kentucky
and southern Illinois. Indeed, four small
quakes in mid-December 2009 were
felt in Arkansas, Missouri, Tennessee
and Kentucky, even though the high-
est magnitude was only 3. 1, versus the
7.0 temblor that hit Haiti. No injuries
or property damage were reported in the
U.S. from last month’s seismic activity.
39 States Quaked Since 1900, earthquakes have occurred in 39 U.S. states. Minor earthquakes, for instance, struck states such as Illinois and Nevada in 2008. There has been no major quake on the U.S. mainland, however, since the 6. 7 magnitude Northridge, Calif., event in 1994.
California Leads Shakers Nonetheless, California remains the U.S. state most at risk of a major earthquake. A huge quake is more likely in Southern California than in Northern California over the next 30 years, according to a 2008 study compiled by experts from the U.S. Geological Survey, USC’s Southern California Earthquake Center, and the California Geological Survey. The study also predicted, in looking at the 30-year probability of one or more events greater than or equal to the magnitude of the Northridge quake hitting California, that there is a 99 percent chance that at least one earthquake meeting that criterion will occur.
The 1994 Northridge earthquake and the 1989 6. 9 magnitude Loma Pri-eta quake that struck the Oakland-San Francisco area during that year’s World Series were the two most costly earthquakes in U.S. history, as defined by insured losses. In 2008 dollars, Northridge caused an estimated $19 billion to $29 billion in insured losses, while the Oakland-San Francisco quake resulted in insured losses totaling a little over $12 billion.
Yet, almost 16 years after 1994’s Northridge, California earthquake, only about one in eight California residents have their homes or businesses insured for property losses in the event of a quake, the Insurance Information Network of California (IINC) estimates.
DES PLAINES, Ill.—New Year’s Day was the leading holiday for reported vehicle thefts in 2008, according to an analysis issued by the National Insurance Crime Bureau (NICB). Among holidays, your vehicle was safest on New Year’s Eve and Christmas Day.
Nationally, vehicle thefts have been on a steady decline for several years in a row, to less than one million a year in 2008. But the thieves are still busy, stealing an average of 2,650 vehicles every day in the U.S., or one every 33 seconds.
“We know that thieves never miss an opportunity to make a quick buck by stealing a car,” said Joe Wehrle, president and CEO of NICB. “They work weekends, nights and holidays and ironically, they are particularly busy on New Year’s Day and Labor Day.” The holidays are ranked by number of thefts reported to the National Crime Information Center (NCIC) in 2008.
New Year’s Day......................... 3,017
Labor Day ................................ 2,847
Halloween ................................ 2,727
President’s Day ......................... 2,683
Memorial Day.......................... 2,599
Independence Day ................... 2,584
Valentine’s Day......................... 2,389
Christmas Eve .......................... 1,841
Thanksgiving ........................... 1,806
Christmas Day ......................... 1,267
New Year’s Eve.............................916
National Ins. Crime Bureau The NICB, headquartered in Des Plaines, Ill., is a not-for-profit organization exclusively dedicated to preventing, detecting, and defeating insurance fraud and vehicle theft through information analysis, investigations, training, legislative advocacy, and public awareness. The NICB is supported by more than 1,000 property and casualty insurance companies and self-insured organizations. NICB member companies wrote nearly $343 billion in insurance premiums in 2008, or more than 82 percent of the nation’s property/casualty insurance.
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