ST. LOUIS – The United States experiences around 20,000 earthquakes annually. More often than not, they go unnoticed. However, experts warn that the nation could see around 16 “major” earthquakes in any given year.

The U.S. Geological Survey defines a “major earthquake” as any seismic activity with a magnitude 7 rating or greater. The agency reports that earthquake damages cost the United States around $14.7 billion each year, and they can be more costly when striking urban areas.

In the case of an earthquake, most homeowners or renters insurance policies do not cover damages as part of their standard coverage. Earthquake insurance is an option in anticipation of such scenarios. Without it, you might be responsible for covering the costs of damages and repairs to your personal property.

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According to recent reports from the USGS and ClearInsurance.com, nearly 75% of the country is at risk of experiencing a damaging earthquake. The reports consider Missouri, Illinois, and other states along the New Madrid fault line as places susceptible to potentially costly earthquakes.

Should you invest in earthquake insurance if you live in Missouri or Illinois?

Outside of the financial implications of earthquake insurance, the USGS says, “No one can predict earthquakes. However, by investigating faults and past quakes, scientists can better assess the likelihood of future earthquakes and how intense their shaking might be.”

The New Madrid earthquakes of 1811 and 1812 are considered among the most powerful to ever hit the Midwest, three ranging from 7.5 to 7.7 magnitude in a matter of months.

According to the Missouri Department of Insurance, the New Madrid zone has a 7-10 percent chance of experiencing a major earthquake over the next 50 years and a 25-40 percent chance of experiencing an earthquake of at least a 6.0 magnitude.

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The department’s report from 2022, however, shows only around 11 percent of homeowners in Missouri’s New Madrid coverage area have invested in earthquake insurance, dropping from nearly 60 percent at the start of the century.

“Depending on what the risk is in your area, additional coverage could be inexpensive or quite pricey,” said ClearInsurance.com. Their report recommends checking on earthquake insurance “either as an endorsement to your basic coverage, or sometimes it is necessary to purchase a separate policy.”

Earthquake insurance deductibles are usually offered at 10-20% of the home’s coverage limit. A 10% deductible on a $200,000 home would mean a homeowner would need to have more than $20,000 in damages before being paid for losses.

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