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54 WWW.AGRM.ORG MAYJUNE 2016 DAY-TO-DAY INSURANCE SOLUTIONS Brian H. Merriam Earthquake Coverage Typical property insurance policies dont cover this major disaster I recently returned from Haiti where I regularly travel to do mission work. As you may recall this poor nation 90 minutes south of Miami suffered an earthquake on January 12 2010 that killed a quarter million people According to the U.S. Geo- logical Survey between 14000 and 32000 earthquakes have occurred each year worldwide over the last 12 years Of these 15 were a magnitude of 8.0 or greater. The devastating 2010 earthquake in Haiti was a 7.0. The number of deaths from earthquakes ranged from 231 in 2000 to 320120 in 2010. Of all the natural disasters that occur the shaking of the earths tectonic plates has the potential for the greatest amount of damage. I point this out because I believe that too many property owners do not give considera- tion to the potential of major damage affecting their build- ings and the contents within them. If there is a consistent omission of coverage from the typical insurance policy it is for this. In fact I am unaware of any insurance policy that automatically provides earth- quake coverageit must be requested. Unlike the perils of fire windstorm and smoke earth- quake coverage is purchased separately and can be for an amount that is not reflective of the entire building and its con- tents. In other words you may have full replacement coverage for your building and contents for fire but only purchase a definitive amount of coverage for an earthquake. Because of this it is recommended that you purchase coverage that reflects the probability of dam- age to your building such as faade damage that would allow you to make the substan- tial repairs that an earthquake can cause. Typically newer well-made buildings can with- stand a minor earthquake especially wood frame build- ings but a masonry building with brick veneer may see the face of the building fall away when the earth shakes. To gauge how much cover- age to obtain start by speaking with a qualified contractor and ask his opinion on the resiliency of your building to withstand a tremor. Then obtain at least a modicum of coverage that would allow you to make repairs to alleviate the burden of paying for damage out-of-pocket. If your building is near a fault line consider the potential of replacing the entire structure and purchase insur- ance accordingly. Bear in mind that earthquake deductibles are usually substantially higher than those for other perils. Brian is the official insurance consultant for AGRM. The Merriam Agency offers property casualty auto directors and officers and workers compensation coverages tailored to the needs of AGRM members. You can email Brian at brianmerriaminsurance.com.