EARTHQUAKE RISKS.

New Zealand Herald, Volume LXVI, Issue 20304, 11 July 1929, Page 8

EARTHQUAKE RISKS.

INSURANCE PROVISIONS. SOME RECENT DEMANDS. REQUIREMENTS OF LENDERS. THE SHAKE OF 189! RECALLED. Tho question of earthquake risk has been under consideration by more than tho Harbour Board in Auckland since the. South Island shake. As reported yesterday, tho Harbour Board has a proposal before it to allocate £SOOO for the purpose of placing raker piling at the ends of the wharves built before 1025 to strengthen them against tho lateral stresses set up by earthquake vibrations, this being suggested by tho engineer as "wiso insurance." It is possible that owners of some, city buildings may seek advice as to whether columns and tics nro of sufficient, strength to hold the structures in the event "f severe tremors being experienced. Already, however, several insurance covers ha\o been sought and obtained o\rr Auckland city properties. Earthquake insurance was practically unknown in Auckland until seven or eight years ago, when largo lending institutions, as a cousequenco to paying move attention than formerly to city investmcnts, deemed it advisable that they should be protected against earthquake loss. Tho rate for the additional cover ranges according to tho typo of building from 2s 6d to 4s per cent, per annum in this locality, which, of course, is not regarded as an earthquake zone. One Very Large Cover. It cannot be said that there has been any panicky rush for earthquake covers sinco tho recent shake, even though the new business embraces one or two important properties. One risk, it is understood, is between a quarter and half a million pounds. It may not bo commonly understood that the ordinary tiro insurance policy does not provide against fire caused by earthquake damage. Until tho Fan Francisco earthquake and fire disaster, the provisions in this respect were much more open, and in point of fact most insurance companies paid out for fire losses in that city which were directly due to the earthquake. This would not be done to day under ordinary policies. Fire is very liable to occur in a city mainly built of wood that is shaken by earthquakes, for stoves may be thrown out of their emplacements, gas-pipes may bo broken and the gas become ignited, or electric installations may be disturbed and short circuits established. At tho same tinio water mains may be broken, rendering tiro control in a street of wooden houses quite hopeless. Thus a, firo starting in One house might under a breeze sweep a wide area. 'J ho ordinary insurance policy would not protect the owners of any of the houses so destroyed. Tho extra rato must be paid, and even then the average policy would require insurance to full value and hold the owner liable for the first £SO of loss. Tho last Japanese earthquake caused greater loss (o property than that of Pan Francisco, but the insurance companies had less liability on account of the tightcning-up of the earthquake clauses. Business Not Sought. While one may not generalise too sweopiugly on the matter, there is reason for believing that insurance companies are not eager to take earthquake risks which are liable to defy the scientific actuarial calculations upon which ordinary rates are based. At the samo time they are not refused. Companies would find it difficult to refuse the additional business of valued clients. Reassuring statements have been made as to the remoteness of severe earthquakes being experienced in Auckland. Professor J. A. Bartrum, professor of geoloey at the Auckland University College, has said that tho geological proiv abilities are that Auckland is unlikely to bo affected by earthquakes of any great severity. "Auckland is situated well west of the really largo earth fractures which characterise our New Zealand area, • ho said. "It is true that active movement has been going on fairly recently in the region cast of Auckland, as instanced by tho Morrinsville shakes, but the lino of fracture there is. adjacent to one of the main fracture belts of the midAuckland area, namely, that which is responsible for the depression occupied bv the Hauraki Plains and tho Firth of Thames. There seems to be no reason why the owners of buildings erected on reasonably sound lines should have any causo for the legist anxiety during this period of 'earthquake nerves.' " What constitutes " reasonably sound lines" awaits the judgment of architects and civil engineers. As far ( as the Prince's, Queen's and King's Wharves are concerned expert opinion is that necessary earthquake provisions are absent and ought to be added, and evidence is not lacking that in some buildings earthquake safeguards have been sacrificed to economic demands. Eflect.s of Quake of 1891. With regard to Auckland's comparative immunity from earthquake shocks, reviews have overlooked one shake centred off Baglan and Kawhia that occurred on June 24, 1891. It, was described in the New Zealand Herald as a " slight shock." "An altogether new experience to most of the citizens," runs the report, " the. tremor was unmistakably felt., and in some houses tho crockery was rattled about but no damage worth speaking about was done." A few bricks, however, were toppled off some chimneys, olaster fell from ceilings and walls, and suspended articles were set swinging. Tho earthquaka was accompanied by a rumble, report eel the Onehunga correspondent. peoplo were swayed in their chairs, and others who were standing were thrown off their equilibrium. At Papakura the clock was stopped and bottles were tumbled eff shelves. At Lucas Creek trees waved to and fro. At Heleusville tho wharf shoe*, a truck swayed and moved off the rails, the blackboards in tho school fell and bottles in a hotel fell. At Hamilton bells were set ringing arid ono brick house was cracked. This shako was nearly dangerous to buildings. Tn/tho "Rossi-Forel scale it is classed VIT-VIII. One point more would have brought about the partial or total destruction of'some buildings, though possibly not at. the distance Auckland was from tho centre of the fracture. Ait authority states that the line joining this origin to that, of tho earthquake of 1832, which was centred off tho west enraiice to Cook Strait, is parallel to the other lines of quake origins, but there was no data to establish any connection between them.