Earthquake coverage is not usually covered on either a homeowners or commercial property policies, so if you live or own a building near an earthquake-prone area, this is definitely a coverage you are going to need to purchase.
Earthquake insurance can be purchased either as an endorsement to your policy or as a standalone policy. Unlike flood insurance, mortgage companies do not usually require you have it, but if you are in a high-risk area, they very well might.
Standard earthquake insurance will cover direct physical loss caused by or during an earthquake and its aftershocks within a specified time period of the main event. The extent of your coverage will depend on the policy limits, which are determined by the insurance company and you, the policyholder.
Typical exclusions on an earthquake policy are brick veneer/exterior masonry, other structures on the property, landscaping, pools, etc. If you need coverage for those things typically excluded, it is possible the company will allow you to add additional coverage to your policy if requested. It can never hurt to ask!
A standard earthquake policy will cover the following:
- Home/building rebuild cost
- Personal property
- Additional living expenses
- Emergency repair costs to protect your property from residual damage
- Building code upgrades
- Land repairs (when necessary to stabilize or support the structure)
If you have further questions or want to know if you need earthquake coverage, please reach out to our agency!