Insured losses from the earthquake which struck Kent in the early hours of Saturday morning are expected to result in tens of millions of pounds worth of insurance claims, while homeowners in the affected area face the prospect of higher premiums.
At around 8:18am on Saturday 28 April the largest earthquake to hit the British Isles since 2002 struck Kent. The quake reached a magnitude of 4.3 on the Richter scale causing serious damage and disruption.
The quake's epicentre was a few miles off the Dover coast but damage to property was centred on the Black Bull road area in Folkestone (an area which is also prone to flooding). Loss adjuster GAB Robins reported emergency instructions from a number of clients as far out as the M20 and tremors were felt across East Sussex, Essex and Suffolk, with cracks appearing along the Hampshire seaside cliff top.
The tremors caused damage to hundreds of homes as well as vehicles. Partially collapsing chimney stacks damaged roof coverings and triggered falling debris which struck vehicles parked on the street below. Most internal damage was confined to very minor cracking (usually at the junction of the ceiling and walls on the first floor).
Earthquakes, like tornadoes and floods, fall under the category of natural disasters, and as such will be covered by standard insurance policies. Many of the major insurers are thought to be involved. Lloyds TSB insurance said that it has over 2,000 customers in the affected area and has so far received claims for collapsed chimneys and damage to outer walls, driveways and pathways.
According to the ABI, the earthquake could result in tens of millions of pounds worth of insurance claims. Previous estimates of similar earthquake damage have put the cost at between £2,000 and £3,000 for each property. Stuart Sealey of Davies loss adjusters, who assessed the damage over the weekend, said he expects around 100 claims varying between £3,000 and £30,000.
“I wouldn't be surprised if the damage reached £50m,” said Ray Johnson, proprietor of Folkestone based Independent Insurance Services.
“The damage is a lot greater than people think. My own house has quite a few cracks. One dentist in the area had his chimney pot fall off his house and the top of his building is now cracked. My colleague's father, who lives in Hawkinge, has a crack running right up the front of his house.”
Johnson thinks homeowners could see an increase in rates following the disaster as some insurers lump the affected zone (postcode CT19) in a higher risk band.
