The seismic shocks that reverberated throughout the Midwest last week might not have caused significant insurance claims and damage to the regions surrounding the earthquake's epicenter, but one thing is certain: The notion that natural catastrophes only occur on our nation's coastlines was shook loose.
In an article Claims published last May, author Gary Brown made the case that earthquakes have the potential to cause at least as much -- if not greater -- distress to commerce than hurricanes, both in terms of building structures and business operations, particularly if an earthquake event of significant magnitude strikes a Pacific Rim metropolis.
That statement was reinforced with the awakening of the New Madrid seismic zone last week. This zone lies within the central Mississippi Valley, extending from northeast Arkansas, through southeast Missouri, western Tennessee, western Kentucky to southern Illinois, and has historically been the site of some of the largest earthquakes in North America, according to the department of earth and atmospheric sciences at St. Louis University.
The earthquake, which measured 5.2 on the Richter scale, was centered in the southern region of Illinois near the Indiana border. It is reported to be the strongest quake to hit the Midwest since 1968. Despite this fact, most areas escaped significant damage and no injuries have been reported. However, aftershocks continue to affect surrounding areas.
According to a report from Guy Carpenter, residents located close to the earthquake's epicenter reported some damage following the earthquake. A small number of properties suffered structural damage in West Salem, just west of the Indiana border in Illinois, and some residents were woken from their sleep as items fell from the shelving. The USGS said the quake was felt as far west as Kansas, as far east as Georgia and as far north as Michigan. The earthquake also shook skyscrapers in central Chicago, and rocked homes in Cincinnati.
Insurers said early homeowner damage claims were mostly for cracks in drywall and foundations, according to Guy Carpenter's report. AIR Worldwide said damage from the earthquake is unlikely to result in significant insured loss while EQECAT said market losses will not exceed $1 billion. AIR Worldwide added that an earthquake of 6.0 or larger in the Midwest region would cause significant damage to older structures as they have not been built to withstand earthquake shaking.
Interested in more catastrophe news and in-depth articles? Head over to Claims' catastrophe channel for more information.
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