Nationwide increases earthquake insurance to NE Ohio

Allstate drops all earthquake insurance to NE Ohio. A day after a 3.1 centered 5 miles off Madison, OH in Lake Erie struck yesterday. This is very unusual considering it is the 5th or so mild earthquake in region in last two years. Why now drop insurances? Do they know something we don't?

Sorry, I guess I have to include some reference like my mamma and third cousins were reptilians to get some meaningful feedback. My bad.

[edit on 10-1-2008 by jpm1602]

Are there any documented earthquakes that ever hit Ohio?Thats really strange,I never knew Ohio has or had earthquakes.Weird.

Google 'ohio earthquake information'. Yesterday's 3.1 wouldn't even weird me out other than nationwide is raising eq rates and allstate is dropping eq insurance all together in NE Ohio. That IS significant.

The only trhing I could find on this were articles dated for june of '06 so it sounds like this is just part of the strategy to get out of the Earthquake insurance biz by Allstate.

Here's one article from Seattle talking about it.

seattlepi.nwsource.com...

It appears that Nationwide is raising the deductible because of fewer companies offering it.

www.wlwt.com...

I don't know if I would agree on this statement from a Nationwide rep.

"This is one way Nationwide manages its risk. There is potential for serious earthquake loss in Ohio," said company spokeswoman Nancy Smeltzer.

[edit on 10-1-2008 by GAOTU789]

Sorry, should have provided direct link.
earthquake.usgs.gov...

Ya I seen that quake. I am a regular watcher of the USGS site. It just appears that this is all part of a long term strategy on both Allstate and Nationwide.

Now are they conspiring in this strategy to increase there profits by decreasing options available to customers thereby justifying their price increases?

I don't think that would be a big stretch to think. Insurance companies aren't know for their compassion.

I hate insurance companies. They should be forced to pay everyone back who has been paying for earthquake insurance. Ridiculous that they are more than happy to take peoples money, since they obviously thought there was no risk of them actually having to pay any benefits. But once it looks like people will actually need the insurance, the quit providing it. Slimy.

That's for certain 789. Ins cos are not known for their altruistic behaviours.
My question is....'why now?'. Seems a bit odd to me.

I don't think it's anything more than underhanded insurance company practice's.

The quote I picked from that article in my first post leads me to think this. My question would be... What are they using to decide this "serious risk"? The article states something like 30 quakes in 5 years measuring 2 or greater. So what, I just don't see how this justifies the move. If Ohio had a couple of 5 or 5.5 in a short period of time(6 months to a year) then I could see the rationale but this just smells of gouging to me. From 2 to 5% seems like a large jump with little real evidence of a threat to back it up.

[edit on 10-1-2008 by GAOTU789]

I can truly understand that 789. Yet allstate is willing to give up all any continued proceeds to back out altogether. It just doesn't smell right to me. I live about 20 miles west sw of epi. I heard a loud bang on the eastern side of my house. LOUD. About 430 pm. Actual eq was at 835 pm. Mentor police joked almost everyone called into station with reports of booms, shaking etc. Mentor is a rather large metropolis of at least 20k. No deaths or damage reported except for rattled nerves and maybe a few vases over mantles. I did not actually hear anything at 835pm, but my dogs were acting really needy, unconsolable.

[edit on 10-1-2008 by jpm1602]

I'd say that is a matter of hedging bets on the New Madrid Faultline.

link

A 90% chance of a 6.0 by 2040 and a 25% of 7.5 by 2040 seems to be some impressive odds considering the last that I read about the Mars Meteor impact only has a 4% chance and it has people excited.

And for the doom and gloom, 1812 was the big one 8.0, it rang church bells in Boston, reversed the flow of the Mississpi River and has a probabilty of 3% of happening by 2040 on cycle of every 500-600years. Yet earlier the article stated a 7.5+ has a 200-300 year cycle.

(bold added for the 2012'ers)



[edit on 11-1-2008 by Ahabstar]

Apparently the pea counters have some inside info no one else has.

reply to post by jpm1602


Might want to read that link I posted. A 6.0 would cause serious damage to buildings from Memphis, TN to St. Louis, MO. A 7.5 or greater would do damage in 20 states and cost over $6 Billion in damages in Missouri alone.

In doing more research there is small fault in your area of Ohio that exends out halfway across Lake Erie. Reports of strange lights and UFO activity tend to increase around fault line several months before seismic activity. Given the reports of the UFO's over the Lake last year, a beancounter might have ran some probability numbers past the higher ups. That, and the fact that nothing is built conforming to an earthquake code could be some very expensive damage totals in the event of a big one.

Thanks for the info Ahabstar, will do. I've done some homework on the 1812 Great EQ, time to check my homeowners policy.

I think the risk of insuring a place like Ohio for earthquakes is too much for the insurance companies.

Even though California is Earthquake country, Earthquakes for the most part have not caused a lot of devastation out here. Builings in California are built to withstand Earthquakes.

On the other hand, places like Ohio are not built to withstand earthquakes. An earthquake that would do little damage in California would completely destroy Ohio. Since Ohio does have an active fault line yet is completely unprepaired to withstand an earthquake, it is very risky to insure.

That makes alot of sense pink. I believe many structures would go up like sawdust. My humble hovel takes 70 mph winds in stride though. I think she would fair thee well.