EQ Insurance 101

Find Earthquake Insurance Info Online (listed by state on the Insure Against Earthquakes public site).

NAIC-CIPR State Resiliency Map. Find disaster resilience information on the website of your state or territory’s insurance department.

CUSEC website: earthquake insurance page.

Missouri Department of Insurance:

• Earthquakes page.
• Missouri Earthquake Insurance Shopping Guide (2021).

Financial preparedness, including the purchase of earthquake insurance where possible, is a critical component of household disaster readiness. Outreach and messaging should:

• Attract public interest.
• Raise awareness about the risk and the need for financial preparedness.
• Encourage people to investigate and, if possible, purchase EQ insurance.
• Present people with a menu of financial preparedness actions, acknowledging differences in people’s budgets and circumstances.
• Encourage people to minimize potential damage and costs by mitigating home hazards.
• Make preparedness look and sound doable, positive, and reassuring.

People are more likely to be persuaded to undertake positive actions if the message communicates both what to do and why to do it. Rational arguments explaining why you should act can motivate, but generally people are more strongly influenced by arguments and reasons that stimulate emotions and evoke values. Value-oriented reasons for preparing your finances and purchasing earthquake insurance include, for example, ensuring your security, giving you peace of mind, and knowing you’ve done all you can for the care and protection of your family. Similarly, taking steps to prepare can boost confidence, provide a positive sense of control, or evoke a positive self-image.

So, it’s important that a complete message emphasize not only that preparing your finances and purchasing earthquake insurance protects you from future material financial impacts and the loss of your home; but also that there are critical (and immediate) positive consequences of your actions (you’re prepared, in control, better able to recover) and as a result, you get peace of mind, feel you’ve taken care of your family, sleep better at night, gain confidence, and build self-esteem.

In a persuasive message, emotions and values can be conveyed by a combination of words and images.

Address Common Misconceptions.

A good focus of messaging is to overcome common misconceptions and points of confusion. Top examples for financial preparedness and earthquake insurance:

• Many people assume that their homeowners or renters policy will cover earthquake damage. Message: Homeowners and renters policies don’t include coverage for earthquake damage unless consumers purchase it as an add-on or buy a separate earthquake policy.
• Many people may expect that government disaster aid will cover their losses. Message: Make your own preparations; don’t count on being rescued. Aid is designed to help people out in a crisis; even if you qualify for aid, the average payout is too low to cover all losses, repair serious damage, or rebuild your house.
• People often misunderstand or find the deductible of an earthquake insurance policy confusing. Encourage people to ask their insurance agent to describe how the deductible works in the policy they are thinking of buying. Reading a reliable explanation of earthquake insurance deductibles online can help people understand their policies and prepare them for a conversation with an insurance agent.

• Understanding Your Insurance Deductibles, by the Insurance Information Institute.
• What’s Up With Home Insurance Deductibles? by United Policyholders

Be Consistent.

While messaging can and should be tailored to suit different audiences and contexts, the core messages should be consistent. Repetition of standardized messages through multiple channels, by all public information sources, increases their impact and effectiveness.

Be Specific.

Communicate specific steps or actions that people can undertake. It isn’t necessary to provide every detail: directing people to other sources for more information or instruction is effective.

Point out Multiple Preparedness Actions.

Earthquake insurance may not be the best choice for everyone, and not everyone will be able to purchase it. Likewise, some financial preparedness steps, such as contributing to an emergency savings account, require more financial resources than some people have. Communicate that there are a variety of financial preparedness actions and that each one can aid a person’s recovery after an earthquake. A good place to start is creating an emergency financial first aid kit, which can be done at no cost.

Paid social media campaigns via Facebook and Twitter are relatively inexpensive and have been shown to be an effective way to circulate disaster preparedness messaging. Public reception of the messaging can be tracked and measured via hits, likes, shares, and comments. 

Suggested dates for pushing out messaging about earthquake insurance and financial preparedness:

• National Preparedness Month: September.
• Great ShakeOut Earthquake Drills: October (except Utah: April).
• Central U.S. Earthquake Awareness Month: February.
• National Tsunami Awareness Week: March.
• Earthquake Preparedness Month (CA; UT; Multnomah County, OR): April.
• Income tax season: March-April.
• National Financial Capability Month: April.
• National Building Safety Month: May.
• National Insurance Awareness Day: June 28.

Impromptu messaging: Post a message about financial preparedness and earthquake insurance when:

• An earthquake or other disaster is reported in the news.
• A news story draws attention to disaster insurance (or the consequences of having no insurance). 

Share/retweet related messages, articles, and blogs posted by partner agencies and organizations.

Not all areas and people have good access to wi-fi, so outreach using non-digital materials and distribution strategies is recommended. Consider, for example:

• Informational posters in public spaces, such as public libraries. 
• Distributing brochures and info-sheets at public events.
• Investing in paid media, such as PSAs on local radio and T.V. 
• Including the topic of financial preparedness for disasters when speaking with local organizations, such as Rotary clubs.

Consider also partnering with local stakeholders to craft and share messaging that’s tailored for a specific community or demographic.

Earthquakes happen suddenly: ground shaking that lasts for less than a minute could cause very costly damage and disrupt your life for months or even years. 

If you’ve seen one earthquake, you have not seen them all. Just because your home survived an earthquake in the past doesn’t mean it won’t be damaged by the next one.

Thinking ahead and taking steps to prepare financially for earthquakes can make your recovery after an earthquake quicker and less stressful.

Don’t count on receiving outside help:

• A federal disaster declaration must be in effect and must include your county by name in order for you to be considered eligible for individual disaster assistance.
• FEMA’s Individuals and Households Program (IHP) aid is supplemental and meant to help you restore your damaged property to a safe, sanitary, and usable condition. It does not take the place of insurance and will not restore the property to its pre-disaster condition.

Many of the actions that you can take to prepare financially for earthquakes will make you better prepared for other disasters and emergency situations, too.

An emergency financial first aid kit ensures that copies of all of your important documents, including identification and insurance policies, are safe and easy to retrieve after an earthquake, or in any emergency situation. 

Tax season is the perfect time to create or update your emergency financial first aid kit: You already have your important financial documents collected together, so what could be easier than to make copies for your kit? 

Standard homeowners and renters insurance policies don’t cover earthquake damage.

Earthquake insurance is sold as an add-on to an existing homeowners or renters policy. Some insurers offer earthquake insurance as a separate, stand-alone policy. Ask an insurance agent or broker about your earthquake insurance options.

If you have most of your life savings tied up in the equity of your home, purchasing an earthquake insurance policy can help protect it.

If you live in an older home, you may need to do seismic retrofitting, such as bolting your house to its foundation, before an insurer will agree to insure your property.

If you’re a renter, the property owner’s insurance won’t cover your losses or damage to your belongings. Consider adding earthquake coverage to your renters policy.

Earthquake insurance for renters may be more affordable than you think: ask an insurance agent about your options.

If you have to live elsewhere temporarily because of earthquake damage to your house or rental unit, an earthquake insurance policy could pay for your additional living expenses.

Earthquake insurance covers direct effects from ground shaking; it doesn’t cover secondary effects of earthquakes, such as damage from tsunami flooding. If you live in a tsunami inundation zone, consider purchasing flood insurance.

Damage caused by fire is usually covered by a standard homeowners or renters policy, even if the fire was a consequence of an earthquake. Read your policy and talk to your agent about what is and is not covered.

Parametric earthquake insurance for homeowners and renters is available in some states [California, Oregon, and Washington]. This can be a good lower-cost option to provide you with some funds for immediate after-earthquake expenses; however, you should still consider purchasing a conventional earthquake insurance policy to cover serious damage and larger expenses.  

If you have concerns or questions about the availability of earthquake insurance where you live, contact your state insurance department.

• Actions you take now can help you recover faster and more fully after an earthquake. Learn more. [link] #InsureAgainstEarthquakes #EarthquakeFinancialResilience.
• Actions you take now can help you get back on your feet tomorrow. Learn how: [link] #InsureAgainstEarthquakes #EarthquakeFinancialResilience.
• Discover how to prepare yourself and your family for the financial impacts of an earthquake: [link] #InsureAgainstEarthquakes #EarthquakeFinancialResilience.
• If you live in a tsunami inundation zone, be sure to ask your agent about flood insurance, too. #InsureAgainstEarthquakes #EarthquakeFinancialResilience #tsunami #insurance.
• An emergency financial first-aid kit ensures that you can find your important documents in an emergency. Learn how to build your kit: PDF #InsureAgainstEarthquakes #EarthquakeFinancialResilience.
• Where would you go if you had to leave your home because of earthquake damage? Planning ahead and taking steps today can prepare you for other emergencies, too. Learn more. [link] #InsureAgainstEarthquakes #EarthquakeFinancialResilience.
• Make financial preparedness part of your disaster-readiness planning. Learn more. [link] #InsureAgainstEarthquakes #EarthquakeFinancialResilience.
• Actions you take now can help you recover faster and more fully after an earthquake. Learn more. [link] #InsureAgainstEarthquakes #EarthquakeFinancialResilience.

• Earthquakes cause more expenses than just the cost of repairs. Speak with your insurance agent to learn more. #FinancialResilienceFactSheet #EarthquakeFinancialResilience.
• Prepare for disasters by setting aside money in a rainy-day fund. Learn more financial preparedness tips: #FinancialResilienceFactSheet [link].
• Saving is the best financial defense against disasters. A little bit can go a long way. Learn more: [link] #FinancialResilienceFactSheet.
• Take control of your finances and make a plan for when disaster strikes. Learn how: [link] #FinancialResilienceFactSheet.
• Before disaster strikes, review your #insurance coverage. Insurance is the fastest way to recover. Learn what steps you can take to be financially prepared: [link] #FinancialResilienceFactSheet.
• Homeowners’ and renters’ insurance don’t typically cover earthquake damage. Learn more [link]  #FinancialResilienceFactSheet #EarthquakeFinancialResilience.