Insurers Prohibited from Excluding Coverage for Fracking Under Earthquake Endorsements

Originally published by Charles Mathis.

Last month, the Pennsylvania Insurance Department (“PID”) issued a notice to all insurance carriers writing homeowners insurance policies in Pennsylvania prohibiting them from denying coverage under the earthquake endorsements of their polices for damage as a result of fracking.
For those that haven’t seen the very interesting documentaries on fracking entitled “Gasland” and “Gasland 2,” fracking is another term for natural gas drilling or hydraulic fracturing. Without getting too technical, hydraulic fracturing, “is the process of drilling down into the earth before a high-pressure water mixture is directed at the rock to release the gas inside. Water, sand and chemicals are injected into the rock at high pressure which allows the gas to flow out to the head of the well.”1 How earthquake endorsements become involved is as follows:

Increases in seismic activity following hydraulic fracturing along dormant or previously unknown…

.

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.

from Texas Bar Today http://ift.tt/1B7Jdvn
via Abogado Aly Website