NU Online News Service, June 30, 3:50 p.m. EDT
A sizable earthquake in the New Madrid seismic zone, located in the central U.S., could cause $300 billion in direct economic losses from the immediate states impacted, according to a recent report.
The report, "Impact of New Madrid Seismic Zone Earthquakes on the Central USA," released by the Mid-America Earthquake Center at the University of Illinois, concludes that indirect losses from a magnitude 7.7 earthquake caused by the rupture of all three New Madrid faults would be at least twice the $300 billion direct loss figure.
Tennessee, Arkansas and Missouri would suffer the most severe damage, with Illinois and Kentucky also impacted, the report states.
About 715,000 buildings will be damaged due to the earthquake, with major destruction to infrastructure like roads and bridges, and limited services from emergency personnel.
About 86,000 people would be injured, with 3,500 deaths, according to the report.
The center's modeling concluded an earthquake of this size would leave 2.6 million households without power--that is, if the home remains standing. The report said 730,000 people would be immediately displaced and 215,000 would be seeking shelter.
But three days after the catastrophe, 7.2 million would be displaced due to an extended lack of utility services.
The upper Midwest, East Coast and other states just west of the seismic zone would be without adequate commodities for an extended period as the repair and restoration process fails to make progress.
The report was completed late in 2009 as a resource for the Federal Emergency Management Agency as part of its Catastrophic Disaster Planning Initiative to develop plans for mass evacuation, sheltering and response to catastrophic disasters.
The lack of resources and destruction to infrastructure "present significant unresolved strategic and tactical challenges to response and recovery planners," the report concluded.
About 5,000 earthquakes are recorded in the U.S. each year. Earthquakes are not covered by a standard homeowners or business policy. Comprehensive vehicle insurance does cover an earthquake.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
