Here is the Script of my recent Conference Call about Earthquake Insurance.

“EARTHQUAKE Insurance”.

We will be discussing the:
1. The Problem
2. What is covered
3. Facts and Q&A
4. Be Prepared
5. Safety
o Before
o During
o After

The Problem

We all know that we are going to have an earthquake; the problem is we don’t know when!
Also Earthquake coverage is not usually a peril that is covered on a Homeowner, Renter, Condo or a Landlord policy. The peril of earthquake needs to be added and there is usually an additional premium charge to add it to your policy!

First of all we need to know the Terms associated with the peril “Earthquake”

One of the most frightening and destructive phenomena of nature is a severe earthquake and its terrible after effects. An earthquake is a sudden movement of the earth, caused by the abrupt release of strain that has accumulated over a long time. For hundreds of millions of years, the forces of plate tectonics have shaped the earth, as the huge plates that form the earth’s surface slowly move over, under, and past each other. Sometimes, the movement is gradual. At other times, the plates are locked together, unable to release the accumulating energy. When the accumulated energy grows strong enough, the plates break free. If the earthquake occurs in a populated area, it may cause many deaths and injuries and extensive property damage.

Aftershock

An earthquake of similar or lesser intensity that follows the main earthquake.

Fault
The fracture across which displacement has occurred during an earthquake. The slippage may range from less than an inch to more than 10 yards in a severe earthquake.
Epicenter
The place on the earth’s surface directly above the point on the fault where the earthquake rupture began. Once fault slippage begins, it expands along the fault during the earthquake and can extend hundreds of miles before stopping.

Seismic Waves

Vibrations that travel outward from the earthquake fault at speeds of several miles per second. Although fault slippage directly under a structure can cause considerable damage, the vibrations of seismic waves cause most of the destruction during earthquakes.

Magnitude

The amount of energy released during an earthquake, which is computed from the amplitude of the seismic waves. A magnitude of 7.0 on the Richter Scale indicates an extremely strong earthquake. Each whole number on the scale represents an increase of about 30 times more energy released than the previous whole number represents. Therefore, an earthquake measuring 6.0 is about 30 times more powerful than one measuring 5.0.

Earthquake Facts

How many earthquakes occur in the US every year?
The National Earthquake Information Center reports from 12,000 to 14,000 earthquakes yearly. Approximately, that averages out to 35 earthquakes every day.
There is not anything we can do to prevent them! Just be prepared for them and we will discuss that later in the call.

In Utah there are several Faults, the main one in the most populated areas is called the Wasatch Fault
The Wasatch Fault runs 240 miles from Malad City, Idaho to Fayette,Utah in 12 Segments.

Earthquake Safety – Be Prepared

Insurance can’t save lives and property – but knowledge and action can.
While an insurance policy can help safeguard your financial health, it can’t prevent a major catastrophe from occurring. You must take protective measures to help ensure the safety of your family and home. We encourage you to use your own good judgment about what’s most appropriate.

Are you protected?
)The best time to plan and prepare for the unexpected is now. By following these two proactive steps, you can help protect your family, your home and your valuables.
1. Learn about the potential risks in your area. Take precautionary measures, such as the ones that I will point out, to help keep your family and home safe.
2. Familiarize yourself with your local emergency and recovery plans. Contact your local police or fire department, or visit city hall to discover your community’s current plans and evacuation routes.
3. Purchase Earthquake insurance. You have a lot invested in your home, so it would be wise for you to protect your investment.
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What to do before an Earthquake

Six Ways to Plan Ahead

1. Check for Hazards in the Home
• Repair defective electrical wiring, leaky gas lines, and inflexible utility connections. Get appropriate professional help. Do not work with gas or electrical lines yourself.
• Bolt down and secure to the wall studs your water heater, refrigerator, furnace, and gas appliances. If recommended by your gas company, have an automatic gas shut-off valve installed that is triggered by strong vibrations.
• Place large or heavy objects on lower shelves. Fasten shelves, mirrors, and large picture frames to walls. Brace high and top-heavy objects.
• Store bottled foods, glass, china, and other breakables on low shelves or in cabinets that fasten shut.
• Anchor overhead lighting fixtures.
• Be sure the residence is firmly anchored to its foundation.
• Install flexible pipe fittings to avoid gas or water leaks. Flexible fittings are more resistant to breakage.
• Locate safe spots in each room under a sturdy table or against an inside wall. Reinforce this information by moving to these places during each drill.
• Hold earthquake drills with your family members: Drop, cover, and hold on!
• Hang heavy items such as pictures and mirrors away from beds, couches, and anywhere people sit.
• Repair any deep cracks in ceilings or foundations. Get expert advice if there are signs of structural defects.
• Store weed killers, pesticides, and flammable products securely in closed cabinets with latches and on bottom shelves.

2. Identify Safe Places Indoors and Outdoors
• Under sturdy furniture such as a heavy desk or table.
• Against an inside wall.
• Away from where glass could shatter around windows, mirrors, pictures, or where heavy bookcases or
• other heavy furniture could fall over.
• In the open, away from buildings, trees, telephone and electrical lines, overpasses, or elevated
• expressways.

3. Educate Yourself and Family Members
• Contact your local emergency management office or American Red Cross chapter for more information on earthquakes. Also read the “How-To Series” for information on how to protect your property from earthquakes.
• Teach children how and when to call 9-1-1, police, or fire department and which radio station to tune to for emergency information.
• Teach all family members how and when to turn off gas, electricity, and water.

4. Have Disaster Supplies on Hand
• Flashlight and extra batteries.
• Portable battery-operated radio and extra batteries.
• First aid kit and manual.
• Cash and credit cards.
• Sturdy shoes.
• 3-day supply of drinking water for every family member and pet
• 3-day supply of nonperishable food that doesn’t require cooking
• Manual can opener for canned foods
• Essential medicines and prescriptions, including glasses and contact lenses
• Blankets and/or sleeping bags
• CONSIDER ASSEMBLING A MINI EMERGENCY SUPPLY KIT TO STORE IN THE TRUNK OF YOUR CAR.

5. Develop an Emergency Communication Plan
• In case family members are separated from one another during an earthquake (a real possibility during the day when adults are at work and children are at school), develop a plan for reuniting after the disaster.
• Ask an out-of-state relative or friend to serve as the “family contact.” After a disaster, it’s often easier to call long distance. Make sure everyone in the family knows the name, address, and phone number of the contact person.

6. Help Your Community Get Ready
• Publish a special section in your local newspaper with emergency information on earthquakes. Localize
• the information by printing the phone numbers of local emergency services offices, the American Red Cross, and hospitals.
• Conduct a week-long series on locating hazards in the home.
• Work with local emergency services and American Red Cross officials to prepare special reports for people with mobility impairments on what to do during an earthquake.
• Provide tips on conducting earthquake drills in the home.
• Interview representatives of the gas, electric, and water companies about shutting off utilities.
• Work together in your community to apply your knowledge to building codes, retrofitting programs, hazard hunts, and neighborhood and family emergency plans.

During an Earthquake

Minimize your movements during an earthquake to a few steps to a nearby safe place. Stay indoors until the shaking has stopped and you are sure exiting is safe.
During an earthquake – at home
An earthquake can feel like a freight train running through your living room. Walls and floors tremble. Furniture shakes. And the loud rumbling can be deafening.
• Remain calm. Don’t run outside.
• Take cover under a sturdy table or desk and hold on. If you can’t take cover, sit on the floor against an interior wall.
• Stay away from windows, skylights, tall furniture and cabinets.
• If you’re outside, remain there. Move away from buildings, power lines and trees.

During an earthquake -in your car

When you’re driving, an earthquake can feel like your tires have gone flat. Your steering wheel vibrates, making it hard to drive straight.
• Don’t panic. Slow down and drive your vehicle to the side of the road. Stay inside your car or truck.
• Don’t stop under power lines or hanging road signs. Avoid bridges, underpasses and tunnels.
• Listen for updates on the radio.
• Once the shaking stops, proceed home with caution. Avoid bridges and ramps that may have been damaged or weakened.

During an earthquake – in a public building

When you’re in an office or at a store, look to the people in charge for directions. Expect fire alarms and sprinklers to activate.
• Don’t rush to the exits. Encourage others to remain calm.
• If possible, duck under a sturdy fixture such as a table or desk. Otherwise, get close to the ground – sit or kneel to keep your balance.
• Stay away from windows, skylights and glass doors.
• After the quake has stopped, exit calmly or follow safety instructions from authorities. Avoid
elevators.

After an Earthquake

• Be prepared for aftershocks. These secondary shockwaves are usually less violent than the main quake but can be strong enough to do additional damage to weakened structures.
• Open cabinets cautiously. Beware of objects that can fall off shelves.
• Stay away from damaged areas unless your assistance has been specifically requested by police, fire, or relief organizations.
• Be aware of possible tsunamis if you live in coastal areas. These are also known as seismic sea waves (mistakenly called “tidal waves”). When local authorities issue a tsunami warning, assume that a series of dangerous waves is on the way. Stay away from the beach.
After an earthquake – taking action
ALWAYS FOLLOW THE INSTRUCTIONS OF AN EMERGENCY RESPONSE PROFESSIONAL.
• Be prepared for aftershocks. Most usually occur within an hour of the quake and can sometimes be more intense than the original quake.
• Turn on the radio or TV for safety information and instructions.
• Don’t use your phone immediately following a quake unless you have an emergency. If you must call, keep conversations short so as not to overload the circuits.
• Be on the lookout for fire hazards. If you have no electricity, use flashlights. Don’t use candles, in case of a gas leak.
• If the gas is shut off at your home, call the gas company to have it reactivated.
• Avoid using water from the faucet until it has been designated as safe.
• If you’re uncertain about the safety of the building you’re in, evacuate with caution.
Keep away from any downed power lines-they may still be live.
• Don’t drive around immediately following temblors. Keep streets clear for law enforcement and emergency vehicles.

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After an earthquake – making a claim

• Contact your insurance provider once the aftershocks have subsided.
• If your home is safe to enter, take photos before cleaning up or throwing anything away. Review your home inventory.
• Consult with your insurance provider before making temporary repairs to help prevent further damage. Keep track of receipts.
• Try to be flexible with your schedule when making an appointment with an adjuster to have them inspect your property.

Here are the Qualifications for coverage

Dwellings must meet the following requirements in order to qualify for coverage:

The Dwelling needs to be on a Concrete slab, basement or solid perimeter foundation and built on flat ground or 26 degrees or less slope.

a. The dwelling is properly anchor bolted to the foundation. Steel anchor bolts must connect the sill plate (the wood board that lays directly on top of the foundation) to the foundation. Bolts should be placed four to six feet apart. In houses with crawl space, the presence of bolts can be verified by looking underneath the house. In slab on grade foundation, an unfinished room such as a garage is the best place to verify the presence of bolts.

b. Cripple walls are braced with plywood or its equivalent. Cripple walls (sometimes referred to as crawl space walls) are short, wood perimeter walls used to elevate the house above ground to allow access to the construction and utility lines or to level a dwelling built on a slope. The height of the cripple wall generally ranges from 14 inches to 4 feet. The interior or exterior faces of cripple walls should be sheathed with plywood. The presence of cripple walls can be confirmed by looking around the perimeter of the crawl space. If wood studs are visible then the cripple walls have not been braced. Braced cripple walls will be completely covered with plywood.

c. The hot water heater is strapped to the building frame. A properly strapped water heater will have at least one metal strap wrapped completely around the water heater and bolted into studs of the dwelling’s walls on either side of the water heater. The metal strap used to secure the water heater should be sufficient enough in size to prevent the water heater from toppling during shaking caused by an earthquake.

Earthquake Questions and Answers

Q: Is the policy effective date the online binding date?
A: The policy effective date can be the online binding date, or the agent can choose
an effective date up to 45 days later.

Q: How is the amount of insurance determined?
A: The amount of insurance is ultimately determined by the customer, but may not
be less than the primary coverage level on the companion policy.

Q: Does a Home Protection Policy insure homes valued over $600,000?
A: $600,000 is the maximum amount for any home’s Coverage A limit.

Q: Are the earthquake policies replacement cost or actual cash value policies?
A: Structures and Personal Property covered under Coverages A and C are settled
on a limited replacement cost basis.

Q: Are basements included in the amount of stories?
A: For the Premium Protection Policy basements are included in the number of
stories. For Condo and Renters policies basements are not included in the
number of stories.

Q: Is masonry veneer excluded from coverage?
A: Yes, masonry veneer is excluded from coverage. Wood frame homes with
exterior masonry veneer are not subject to the masonry surcharge and rate the
same as other wood frame homes.

Q: How is mixed construction rated?
A: If a home is 51% or more wood frame construction the home will be rated as
wood frame. If the home is 51% or more masonry construction the home will be
rated as masonry.

Q: Can Coverage C (Personal Property) be increased on a premium policy?
A: No. The coverage C limit is 50% of the Coverage A limit.

Q: Can you schedule personal property?
A: No.

Q: Does this policy also cover landslides?
A: No.

Q: Are condo associations covered?
A: No.

Q: Is a bolted pre-fabricated house covered under this policy?
A: Yes.

Q: Are mobile homes covered under this policy?
A: No.

Questions About the Inspection Process:

Q: What do the inspectors look for?
A: Inspectors will primarily check the property for:
1. Prior damage
2. Bolted foundation
3. Secured water heater
4. Reinforced cripple walls (if cripple walls are present)
5. Slope of the land the property is built on
6. Any other earthquake hazard identified in the underwriting guidelines

Q: Who pays for the inspection?
A: An inspection fee is charged to the insured upon inception of the policy. The fee is automatically included in all quotes.

Q: Are inspections conducted on renewal business?
A: No.

Q: How can the insured tell if their home is bolted to the foundation?
A: If they check the foundation of their dwelling and see large anchor bolts drilled
into the sill plate (the wooden board that lies directly above the foundation) every four to six feet they will know their home is bolted to the foundation. Please see Figure 1.

Q: Will a dwelling strapped, rather than bolted, to the foundation pass inspection?
A: No.

Questions About Premiums and Fees:

Q: Are fees refundable?
A: No.

Q: Is the policy fee charged on new and renewal business?
A: Yes. Unless prohibited by the laws of the program’s state.

LET’S TALK !!!! I hope this information has been helpful to you.

Now is the time to act on this. We are here to help you get your property protected. It just takes a few minutes to give you a quote and get the policy issued. It is easy and simple. The company does have payment plans available. We can do most of the process over the phone.
Don’t delay getting this important coverage for your home!

If you have any questions please give the office a call.
My contact information is:
Phone- 801-224-7433
Website – www.Tedwhitaker.com
Email – info @tedwhitaker.com

Now remember
“If you don’t have your insurance with me. . .you should!”