Up to $100 million in insured losses from Spanish earthquake
A magnitude 5.1 earthquake struck near Lorca, Spain on Wednesday, May 11, 2011. The quake ruptured near the surface about 350Â kilometers south-southeast of the capital city of Madrid.
Catastrophe modeler EQECAT says that there are at least 10 fatalities reported, primarily caused by the collapse of masonry walls. Damage to properties from this event is concentrated near the epicenter, but this area includes the central business district of Lorca. There are many reports of partial collapses of buildings.
The earthquake occurred in a seismic belt that runs across Spain’s southern Mediterranean coast. Unreinforced masonry is a common construction material in the region, especially among older buildings in the city center, and the vulnerability of this type of construction to damage resulting from earthquakes is the primary cause of the damage, said EQECAT.
Earthquake insurance is a mandatory coverage of property insurance in Spain (except for agricultural property, construction, and erection risks). EQECAT says insured losses net of deductible are not expected to exceed USD $100 million.
