Seattle quake estimates high

An earthquake that shook Seattle and nearby areas in Washington and Oregon will cost insurers about $330 million, says a press release from the Insurance Services Office (ISO). The quake, which struck on February 28 and measured 6.8 on the Richter scale, resulted in over 13,500 claims from homeowners and businesses in the affected area. Most of the damage, about $315 million in losses, occurred in Washington.

Early reports pegged insured losses at more than $1 billion dollars, but a recent survey of insurers shows costs were much lower than previously thought.

Earthquake policy endorsements that provide for deductibles equal to 10% or more of the policy limit are one reason costs were lower than expected, notes Gary Kerney, director of ISO’s Property Claims Services unit.

Kerney adds that earthquake coverage may apply to less than 25% of the buildings in the quake zone.

ISO will resurvey insurers in two months’ time to see if further damage has been assessed, the release notes.