South Carolina: Earthquake Insurance Necessary?

South Carolina is considered to have a moderate to high risk of earthquakes, with 70% of earthquakes in the state occurring in clusters around three areas: Ravenel-Adams Run-Hollywood, Middleton Place-Summerville, and the Coastal Plain. The state has experienced significant earthquakes over the years, including a 5.1 magnitude earthquake in 2016 and a 7.0 magnitude earthquake in Charleston in 1886, which destroyed whole areas of the city and killed over 100 people. Given the risk of earthquakes in South Carolina, residents may be wondering if they need to carry earthquake insurance. Standard homeowners insurance policies typically do not cover earthquake damage, so residents may need to purchase a separate earthquake insurance policy or add an earthquake endorsement to their existing policy.

South Carolina's earthquake history and future risk

South Carolina has a history of significant earthquakes and is considered an area prone to seismic activity. The first recorded earthquake in the state occurred in 1663, and since then, approximately 10 to 15 earthquakes have been recorded annually, with three to five of them being felt by people. While South Carolina may not be the first state people think of when it comes to earthquake disasters, it is important to recognize its seismic activity.

One of the most destructive earthquakes in the state's history occurred in 1886 in Charleston. This earthquake registered at 7.6 on the Richter scale and was felt from Cuba to New York. It resulted in the deaths of approximately 60 to 110 people and caused extensive damage, including the collapse of buildings and cracks in the streets. This earthquake is considered the largest seismic event ever recorded in the southeastern United States.

Another notable earthquake in South Carolina's history took place in 1913 in Union County. This quake was estimated to be a 5.5 magnitude earthquake and caused significant damage. More recently, in August 2016, a 5.1 magnitude earthquake was felt throughout the state. Additionally, in late 2020, a string of minor earthquakes in the Midlands region led to an increase in residents purchasing earthquake insurance.

According to the South Carolina Department of Insurance, about 70% of earthquakes in the state occur in clusters around three areas: Ravenel-Adams Run-Hollywood, Middleton Place-Summerville, and an area in Lake Jocassee. The state is considered to have a moderate to high risk for earthquakes, with the potential for a severe quake being high. The Federal Emergency Management Agency (FEMA) also lists South Carolina as a state with a high risk of experiencing an earthquake.

While the frequency of earthquakes in South Carolina may be relatively low compared to other regions, the impact of a potential large-scale quake should not be underestimated. Scientists continue to study the state's seismic activity to better understand the risks and reduce the potential dangers. The Earthquake Education Center at Charleston Southern University predicts a 40 to 60% chance of a major earthquake occurring somewhere in the eastern United States, including South Carolina, in the next 20 years.

Given South Carolina's history of earthquakes and the ongoing risk of seismic activity, it is essential for homeowners and residents to consider earthquake insurance. Standard homeowners' insurance policies typically do not cover earthquake damage, so purchasing separate earthquake insurance or adding an earthquake endorsement to an existing policy is crucial for protection.

Homeowner's insurance and earthquake damage

Homeowners Insurance and Earthquake Damage

Homeowners insurance is designed to provide financial protection in the event of damage to your property. While standard homeowners insurance policies typically cover most natural disasters, it's important to note that earthquake damage is often excluded from this coverage. This means that homeowners in areas prone to seismic activity, such as South Carolina, may need to purchase separate earthquake insurance or add an earthquake endorsement to their existing policy.

South Carolina has experienced significant earthquakes throughout its history, including a 5.1 magnitude earthquake in 2016 and a 7.0 magnitude earthquake in Charleston in 1886, which caused widespread destruction and loss of life. The state is considered to have a moderate to high risk for earthquakes, with 70% of earthquakes occurring in the Coastal Plain region. Given this risk, it is important for homeowners to consider their insurance coverage options carefully.

Earthquake insurance provides specialized coverage for damage caused by earthquakes, including damage to the structure of your home and its contents. It can be purchased as a standalone policy or added to your existing homeowners insurance. This type of insurance can provide valuable peace of mind, knowing that you are protected financially in the event of an earthquake.

When considering earthquake insurance, it's important to understand the specific coverage offered by different policies. For example, some policies may only cover damage to your home, while others may also include coverage for additional living expenses if your home becomes uninhabitable due to earthquake damage. It's also important to be aware of any exclusions or limitations, such as gradual damage or losses from floods and tidal waves.

The cost of earthquake insurance can vary depending on factors such as the location and value of your property, as well as the deductible amount chosen. The deductible for earthquake insurance is typically a percentage of the coverage limit, and it's important to choose a sufficient amount of coverage to protect your finances and your ability to rebuild in the event of a major earthquake.

In summary, homeowners in South Carolina should not overlook the importance of earthquake insurance. By adding this coverage to their existing policies or purchasing a separate policy, homeowners can ensure that they are protected from the financial burden of earthquake damage. Speaking with an experienced insurance agent can help individuals make informed decisions about their specific coverage needs and ensure their homes are protected from potential seismic risks.

Earthquake insurance affordability

Earthquake insurance in South Carolina is an important consideration for homeowners due to the state's moderate to high risk of seismic activity. While it may be tempting to forgo coverage, especially with the added cost of insurance, it is worth noting that earthquakes can cause significant damage to properties and result in costly repairs or replacements.

The affordability of earthquake insurance is a key factor in deciding whether to purchase it. In South Carolina, the cost of earthquake coverage can vary depending on factors such as the size, price, and type of construction of the home. According to Gary Patterson, a State Farm insurance agent, earthquake coverage can range between 5% and 15% of one's deductible. For example, if your home is insured for $200,000, a 10% deductible would be $20,000, and the earthquake coverage would add an extra $1,000 to $3,000 to your insurance costs.

It is worth noting that the deductible for earthquake insurance is typically higher than that of standard homeowners' insurance, usually ranging from 10% to 20% of the coverage limit. This is because earthquake insurance covers a specific and significant risk that is not typically included in standard policies. The higher deductible helps to keep premiums more affordable for those who choose to purchase earthquake insurance.

While the cost of earthquake insurance may seem like an unnecessary expense, especially for those on a tight budget, it is important to weigh the potential benefits against the risks. South Carolina has experienced significant earthquakes in the past, and the potential for a severe quake remains high. In the event of a major earthquake, the damage to your home could result in financial losses far exceeding the cost of insurance premiums.

Additionally, it is worth considering the peace of mind that comes with knowing you are protected financially in the event of an earthquake. This can be especially important for those living in high-risk areas or for those who have experienced the trauma of a previous earthquake.

When deciding whether to purchase earthquake insurance, it is essential to speak with a trusted and experienced insurance agent. They can help you assess your specific coverage needs, taking into account factors such as your home's location, proximity to fault lines, and the age and occupancy of your home. By working with a knowledgeable agent, you can make an informed decision about whether earthquake insurance is a worthwhile investment for your situation.

How to prepare for an earthquake

Although South Carolina may not be the first place people think of when it comes to earthquakes, the state has a history of seismic activity and is considered to be at moderate to high risk for earthquakes. With this in mind, here is some advice on how to prepare for an earthquake:

Firstly, it is important to secure your home. Make sure that your water heater, gas appliances, and other fixtures are fastened securely. Check that bookcases and furniture are also secure and fastened to walls to prevent them from falling over during an earthquake.

Secondly, develop a family emergency plan. This should include designating a meeting place outside the home where family members can gather once the danger has passed. It is also a good idea to designate a distant relative or friend as a point of contact in case you and your family get separated.

Thirdly, plan ahead and stock up on emergency supplies. Keep flashlights, batteries, candles, and a portable radio on hand. It is also important to have enough non-perishable food and water to last your family for at least a few days.

Finally, educate yourself and your family on what to do when an earthquake strikes. If you are inside, stay indoors and take cover under a sturdy table or desk, and stay away from windows. Do not evacuate the building unless instructed to do so by emergency personnel. If you are outside, stay away from buildings and power lines, as there is a risk of falling debris. If you are in a car, stop in an open area away from buildings and power lines and stay inside the vehicle.

In addition to these preparations, consider purchasing earthquake insurance to protect your home and finances in the event of an earthquake. Most standard homeowners' insurance policies do not cover earthquake damage, so you may need to purchase a separate policy or add an earthquake endorsement to your existing policy.

What to do when an earthquake strikes

While South Carolina may not be the first place that comes to mind when thinking about earthquakes, the state has experienced significant earthquakes over the years, and the Federal Emergency Management Agency (FEMA) lists it as a state with a high risk of earthquakes. Therefore, it is important for residents to know what to do when an earthquake strikes. Here are some instructive and focused guidelines:

Before an Earthquake:

• Create an emergency plan: Develop a family emergency communication strategy that includes an out-of-state contact and a designated meeting place.
• Assemble a supply kit: Include essential items such as food and water for several days, a flashlight, a fire extinguisher, and a whistle.
• Protect your home: Secure heavy items like bookcases, refrigerators, and televisions to prevent them from falling and causing injuries or damage.
• Practice earthquake safety drills: Familiarize yourself and your family with the "Drop, Cover, and Hold On" technique.

During an Earthquake:

• If indoors: Stay inside. Get under a sturdy desk or table, covering your head and neck with your arms. Stay away from windows, fireplaces, and heavy furniture. Do not run outside or downstairs.
• If outdoors: Move away from buildings, power lines, and anything that could fall on you, such as trees or chimneys.
• If driving: Pull over to a safe location, away from bridges or overpasses. Stop the car, apply the parking brake, and stay inside until the shaking stops.
• If in a mountainous area: Be cautious of falling rocks, landslides, and falling trees or debris.

After an Earthquake:

• Wear sturdy shoes: Protect your feet from broken glass and debris.
• Check for injuries: Provide first aid to anyone who is hurt.
• Expect aftershocks: Be prepared for additional tremors following the initial earthquake.
• Check utilities: Inspect for gas leaks, and turn off the gas valve if necessary. Check for electrical damage and water leaks.
• Evacuate if needed: If the building is severely damaged, evacuate and do not re-enter. Use text messages or social media to communicate your status and location.
• Help others: Provide assistance to those who may be injured or trapped, but do not move seriously injured people unless they are in further danger.
• Listen to news and authorities: Stay informed through local news reports and follow the instructions provided by emergency management authorities.

Frequently asked questions