Agent Discusses Feasibility of Earthquake Insurance
DARYN KAGAN, CNN ANCHOR: People affected by this week's quake are no doubt considering how they're going cleanup and fix the damage. If you're in the Seattle area or live in an earthquake-prone region, questions are ever present about earthquake insurance.</s>LEON HARRIS, CNN ANCHOR: And joining us now to answer your e- mails is Michelle Rupp. She is an independent insurance agent in Seattle, who, as I understand it, Michelle, you've actually lived through a few of these earthquakes in Seattle, correct?</s>MICHELLE RUPP, INDEPENDENT INSURANCE AGENT: Yes, I have. I'm sorry, I can't hear you very well.</s>HARRIS: I'm sorry.</s>RUPP: Could you ask me that question again?</s>HARRIS: All right, I'm sorry. Yes, we've got to get that earpiece out there straightened out. But I understand that you are an earthquake nut and you've lived through a couple of earthquakes out there in Seattle -- is that right?</s>RUPP: Yes, I have. Three of them, actually, but this was the toughest.</s>HARRIS: Really?</s>RUPP: And the scariest.</s>KAGAN: Where were you, and how did you do?</s>RUPP: I was at my office, and because we have earthquake kits under our desks, immediately we all dove for cover under our desks, with our heads resting on our earthquake kits. So we got to ride that out.</s>HARRIS: Now, since you introduced the concept, explain to those of us who may not be as familiar with these things.</s>KAGAN: The Ohio in you.</s>HARRIS: That's me -- what the heck is an earthquake kit and what should you have in it?</s>RUPP: Well, at the office, we have water, food, some blankets, little warmers, a flash light, light sticks, and that's about it -- a little first aid stuff. Just in case you get stuck in your office, you have you some water, some things to sustain you. You really should have a kit that will last -- sustain you about 72 hours, in case help doesn't come for that long.</s>KAGAN: And all this, of course, is part of the preparation, and part of that, too, is having the right kind of insurance, in case you have some damage to your home. We're both homeowners; we both have homeowners' insurance, so we're covered, right?</s>RUPP: Well, not necessarily.</s>HARRIS: How do you know if you...</s>RUPP: Regular...</s>KAGAN: ... if you're covered or not for an earthquake?</s>RUPP: Well, first of all, you need to speak with your agent, because it's not -- I don't think most of us -- well, most people don't want to be looking into their contract and reading their contract right now. I suggest this is a time to call your agent. Most people don't have it unless they've specifically requested it.</s>HARRIS: Yes.</s>RUPP: So that's something you need to really pay attention to, particularly after this kind of a disaster.</s>KAGAN: How much more expensive does that make your policy, if do you think in advance and get it.</s>HARRIS: That exactly what I was going to ask, yes.</s>RUPP: Generally speaking, it can be fairly expensive. It can double the price of your insurance policy.</s>KAGAN: It really can.</s>RUPP: Very much so. And it depends on what kind of house you have. If you have brick, which is much more susceptible to brick falling off of a home, it's going to be much more expensive than, for example, a wood-frame home. And if you live on a hillside that has a tendency to come down, you're also going to be paying more money for that.</s>HARRIS: Now, is this something that most people in Seattle do have or would have, do you know?</s>RUPP: Not really. Actually, they say about 20 percent of the people have it. Even after the Northridge earthquake in California, lots of people started buying it, and then as the time progressed, they dropped it, because it is expensive.</s>HARRIS: Let's say now you've been lucky enough to come through with your home not being damaged, but this has been a good scare, and you decide you want it. Is now the time to shop for earthquake insurance -- I would imagine the prices would be rather high, since the insurance companies are looking at all these damages -- or it would be better to wait?</s>RUPP: Well, the problem is is you're not going to be able to buy it right now. Most companies put some kind of moratorium on earthquake insurance anywhere from 10 days to 30 days. And if we get any aftershocks, that will keep extending. So you're now going to be able to but it, but it's a good time to shop it and start educating yourself about how much it's going to cost.</s>HARRIS: Yes, and it strikes me as sort of like the issue that comes -- the discussion that comes after every hurricane: You know, we talk to folks along -- and some people inland who gets stuck -- or get stung by what happens with the hurricane, they never even think about it.</s>KAGAN: They never think it's going to hit.</s>HARRIS: Yes, now, do people, when they buy places, I guess, in the West, do they find that out automatically? Is that kind of information available immediately to people, whether or not they are in an earthquake zone?</s>KAGAN: Just like a flood zone when you buy a house around here.</s>HARRIS: Yes, right.</s>RUPP: Unfortunately, it's not available, even to those of us who sell insurance. Various companies have that kind of information available. But once again, I think it's something people should think about, because you simply can't get it for any price. And I think people should take a clue, because if an insurance company who wants to make money from you is not selling you earthquake insurance, it's because they're pretty darn sure if we have one, you're going down.</s>HARRIS: Yes.</s>KAGAN: Yes.</s>RUPP: So pay attention to that.</s>KAGAN: Michelle, we have a question from one of our viewers, from e-mail, so we're going to put that on the screen. We'll read it to you, and then you can answer back. Question here, "Is earthquake coverage in Washington modelled after the California policy? Does Washington policy cover damage to driveways, sidewalks, exterial wall services, Sheetrock and plaster?" That's kind of specific.</s>RUPP: Well, every policy varies. Unfortunately, there's not any general answer to any of that. This is a time when you need a good agent, and you need to discuss those issues with your agent. This is the time to call them and talk extensively about those things before it happens. Everyone's concerned after, but before it happens, ask every question you can, because again, you get what you pay for in insurance, and something -- some coverages are broader than others, some policies are broader than others. So again, talk, again, with your agent.</s>KAGAN: Very good. Very educational.</s>HARRIS: Yes, we'll keep an eye on some more e-mails to see if we get any other good ones in later on.</s>KAGAN: Very good. Michelle Rupp, thank you so much. Glad you came through the earthquake OK. Thanks for the information.</s>HARRIS: Thanks, and be careful out there. All right.</s>RUPP: Thank you.