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.
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.