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RMS Estimates Insured Losses of Up to £30 Million for Lincolnshire
Earthquake
London–
February 28, 2008 – The earthquake that struck Market Rasen in
Lincolnshire yesterday is likely to cause insured losses of between £15
million and £30 million, according to initial estimates by Risk
Management Solutions (RMS), the world’s largest provider of products and
services for catastrophe risk management. Despite the location of the
earthquake’s epicenter, most of the damage was sustained some 18 miles
away in Gainsborough, where residential and commercial properties were
affected. The concentration of damage in the southern area of the town
is likely to be a result of poor soil conditions, which are known to
amplify the impact of earthquakes, and weaknesses in the buildings.
The magnitude 5.2 earthquake could be felt across a
wide radius, but created relatively low-level ground motions. “The
damage caused is largely a reflection of the vulnerability of buildings,
rather than the strength of the earthquake,” commented Dr. Andrew Sorby,
model manager for Europe earthquake at RMS. “Had the same event occurred
in an area like California, where earthquake risk is high and properties
are built to withstand ground-shaking, the damage would have been
minimal.” For example, a similar magnitude earthquake in California in
October caused very little damage, with only a few cracked windows
reported. Many U.K. properties are made of masonry,
which makes them more prone to severe cracking during earthquakes
compared to wood-framed buildings, for example. The damage resulting
from the Folkestone earthquake in April last year – reported to be
between £20 million and £30 million - was concentrated in a small
residential area consisting of mainly Victorian properties, which tend
to be more prone to damage. Earthquake insurance is
included as standard in most homeowner and commercial business policies,
together with wind and flood risk. “Since the summer floods, which
affected many of the same areas impacted by the earthquake, more people
are likely to have taken out insurance to protect their properties, so
most of the damage from this earthquake should be covered,” added Dr.
Sorby.
RMS has sent reconnaissance teams to assess the
damage in Lincolnshire, and will include this information in its UK
earthquake model to be released later this year.
Notes to editors
The population of Market Ramen is around 3,200 compared to 17,500 in
Gainsborough. On average, earthquakes have been felt strongly in
Lincolnshire every 200-300 years over the last 1,000 years, including in
1185 (when Lincoln Cathedral was badly damaged), 1343 and 1755.
Dr. Andrew Sorby discusses the Lincolnshire
Earthquake in the March 3, 2008 edition of Best Week Europe.
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