Oklahoma Commissioner: Quake Coverage Still Being Sold in State

Oklahoma Insurance Commissioner John D. Doak wants to quell rumors that insurers are imposing six-month moratoriums on purchasing earthquake insurance. He said consumers raised concerns about moratoriums after a 5.8 magnitude earthquake struck near Pawnee on Sept. 3.

A moratorium is a temporary suspension on issuing new earthquake insurance policies.

“While touring earthquake damage in Pawnee, several residents said they didn’t think they could purchase earthquake coverage for six months,” said Doak. “That’s just not true. We reached out to the industry and couldn’t find one with a moratorium longer than 60 days right now.”

Doak added that several insurance companies are already selling new policies.

Many insurers enact moratoriums after strong earthquakes in order to clearly separate one earthquake event from another. Coverage cannot be purchased for damage that has already occurred or is occurring.

While the exact guidelines range from insurer to insurer, many impose moratoriums after quakes with a magnitude of at least 5.0 for new policies within 100 miles of the epicenter. Typically, a small magnitude quake in the same area during the moratorium would not trigger an additional waiting period.

Only about 15 percent of Oklahomans carry earthquake insurance, according to the insurance department.

The Pawnee quake was the strongest recorded in Oklahoma to date.

Topics Catastrophe Oklahoma Earthquake