Shaking Things Up

Did you know that in 2023, the United States Geological Survey’s data reported 21 earthquakes in North Carolina? Most of these happened in the western part of the state, firmly in AFM’s writing territory. Although most of them were either too small in magnitude to easily feel, or happened in less populated areas, the statistics don’t lie: earthquakes are a not-so-rare occurrence in our state.

Did you also know that a standard, unendorsed homeowners policy does not cover the peril of earthquake? While some carriers do not offer any option to add earthquake coverage to their policies, AFM is proud to have this coverage available by endorsement on our Select Homeowners program.

Quoting this coverage for your clients is quick and easy. However, there are a couple of things to keep in mind that make quoting the Earthquake line item different than other endorsements:

· The deductible is a percentage of the Coverage A amount instead of a flat dollar amount. AFM offers deductibles ranging between 5-20%.

· You will need to select if the Masonry Veneer Exclusion will apply. To answer this correctly, it is important to evaluate the exterior construction of the home. Selecting “Does Not Apply” indicates that the insured does want coverage for Masonry Veneer on the exterior of the home. Selecting “Applies” for this option indicates that either the home is frame construction with no Masonry Veneer exterior present, or that the insured does not wish for coverage to apply to the Masonry Veneer exterior portions of their home. There is a significant premium difference between including or excluding coverage for Masonry Veneer.

Many homeowners don’t think to ask if their policy covers earthquakes until one is reported in the news, even if the event happens several states away or in a completely different part of the world. Once an earthquake becomes the story of the day, many insurance agents’ phones start ringing with questions. As an AFM writing agent, you can confidently say that you have an option available for earthquake coverage.

For more information about quoting the Earthquake endorsement, please contact our Underwriting team. For more information about actual earthquake events, visit the USGS website at https://www.usgs.gov/programs/earthquake-hazards/earthquakes