February is Earthquake Awareness month, and the Missouri Department of Commerce and Insurance (DCI) and the Missouri Insurance Education Foundation (MIEF) want to encourage homeowners to assess their financial readiness to recover in the event of a major earthquake event in Missouri. Missouri is the third largest earthquake insurance market in the U.S., following California and Washington.
A news release says experts estimate the chance of a major earthquake of a magnitude 7.5 or greater in the New Madrid zone over the next 50 years is seven to 10 percent. The probability of an earthquake exceeding magnitude 6.0 over the same period is 25 to 40 percent. A joint assessment by the Mid-America Earthquake Center of the University of Illinois and the Federal Emergency Management Agency predict a New Madrid event could constitute the highest total economic loss of any natural disaster in U.S. history.
Despite these predictions, a report released by DCI in 2019 shows that residences covered by earthquake insurance in the most at-risk counties of the state dropped by 46 percent between 2000 and 2018.
DCI and MIEF have partnered to raise awareness about the financial impact an earthquake could have on Missouri homeowners. Earthquake coverage is not a part of the standard homeowner’s policy. It, like flood insurance, must be purchased separately.
To make it easier to shop and compare earthquake insurance options, DCI provides a shopping guide on its website.
Resources to assist consumers as they make their readiness and recovery plans can be found at centralusquake.org.