Farmers Insurance, in an effort to extend its insurance reach, offered residents of the state of Oklahoma property insurance with an endorsement coverage for property damage caused by earthquakes.PropertyLegislation & Regulation
Between January 1, 2001 and March 1, 2021, thousands of Oklahomans purchased this cover as a means to protect themselves from the growing seismic activity the state faced.
As part of a bulletin issued by the state’s Insurance Commissioner, insurers providing such coverage were expected to 1) conduct prior inspection of properties insured under such coverage and maintain a current record of property conditions pre-earthquake, and 2) train adjusters accordingly.
These expectations were in-line with Farmers’ own policies.
However, as damages from earthquakes grew, so too did the number of claims Farmers denied.