As Oklahoma’s earthquake frequency exploded, so did the rates of insurance companies covering the damages. Reuters reporter Luc Cohen recently examined thousands of pages of documents from the Oklahoma Insurance Commission. He found efforts by nearly a dozen insurance companies to place the expense of the earthquakes at the feet of homeowners, reports StateImpact Oklahoma.Six Oklahoma insurers hiked premiums by as much as 260 percent, while three other companies increased deductibles.
In instances where they would have to pay damages to homeowners, insurers were prepared to sue oil and gas companies for reimbursement. The documents also showed that insurers worried the surge in small quakes might mean a “big one” was coming.
Because of this fear, the companies hiked premiums and prevented policyholders from obtaining earthquake coverage. When insurance companies did provide coverage, it gave them incentive to try to recoup payouts from oil companies.
