Your home is insured for earthquake damage only ifyou’veadded an endorsem*nt to your policy or bought a separate earthquake policy. There are steps you can take to be preparedshould an earthquake strike.
TOP CONSIDERATIONS
Earthquakes can cause a great deal of damage thatwon’tbe covered under your homeownersorrentersinsurance policy.
Ifthere’sbeen a recent earthquake, most insurers won’t sell any new earthquake insurance for 30 to 60 days. If you are considering a policy, the ideal time to buy the coverage is beforethere’san earthquake.
Expect aftershocks, which can cause more damage in the hours, weeks, days or even months after the quake. Talk to your insurance provider about the coverage of these events.Typically, all earthquake events in a 72-hour (three-day) period are considered one event—with one claim and one set of deductibles. Damage caused by aftershocks more than 72 hours after the first quake could mean a second claim with a second set of deductibles.
WHAT YOU SHOULD KNOW
Call your insurance agent after an earthquake.The insurance company will assign a claims adjuster to assess the damages and determine the payment. These adjusters may be employees of the company or independent contractors. The adjusterwill likelymeet with you to inspect the damage.
Be aware of your earthquake policy’s deductible.A deductible is the amount the homeowner is responsible for paying on each claim.The deductible for earthquake insurance is usually 10–20% of the coverage limit. For example, if your home is insured for $200,000,a 10% deductible would be $20,000.
Even if youdon’tthink the earthquake damage to your home is greater than your deductible, let your insurance company know that your home has been damaged. A qualified professional should inspect your home for both structural (hidden) and cosmetic damage.
Earthquakes can be unpredictable.There are actions to lower the risk of earthquake damage. Some of these stepscanalsomean a lower earthquake insurance premium. Retrofitting (changes to your home to reduce damage) may be a way to protect some homes.
Bolt down items such as bookcases, dressers and televisions.
Secure and brace the water heater to the dwelling frame.
Install automatic gas shut-off valves.
Know what is not covered.Earthquake insurancedoesn’tcover water damage from external sources,such as from sewer or drain backup or flooding. For example, if you live near a lake that floods your home after an earthquake, earthquake insurancewon’tpay to repair the damage. A flood insurance policy will cover your property for that damage.
Earthquake insurance usually won’t cover anything yourhomeownersinsurance policy already covers. Itwon’t, for instance, cover fire damage to your home,even if the fire started because an earthquake ruptured a gas line. Yourhomeownerspolicy would cover losses from a fire.
THINGS TO REMEMBER
Standardhomeownersinsurance policies do not cover earthquake damage.
Be aware of earthquake deductibles and how they work.You can read about the topic in ourConsumer Insighton earthquake deductibles.
An insurance policy is a legal contract. Read your policy and contact your insurance agent or company if you have questions. If theycan’tanswer your questions, contact your state insurance department.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.
