Indonesian Quakes Remind Many Homeowners of Earthquake Risks

The tragic aftermath of the major earthquakes that struck Indonesia, Samoa and American Samoa are a sad reminder to homeowners in the U.S. that earthquakes can happen at any time and with very little warning.

California homeowners are the most at-risk for a major earthquake, however, earthquakes have been detected in 38 U.S. States since monitoring began. Since earthquake damage can be devastating to homes, businesses and automobiles- it’s important to know what type of insurance coverage you have to help you clean up the mess should a disaster like this strike your area.

A standard homeowners insurance policy does not cover earthquake damage. A separate earthquake policy is needed to provide coverage for damage caused by a quake. These policies typically carry a deductible that is expressed as a percentage and rates can vary drastically depending on the risk level of your home and the company.

Tsunamis, which are caused by underwater earthquakes, are also a threat to homeowners on the coast. Tsunami damage is considered flood damage by most home insurance companies and is therefore only covered under a flood insurance policy. Tsunami and/or flood damage is not covered under a standard home insurance policy. >Flood Insurance 101

Automobiles are also at risk for damage from earthquakes and tsunamis. An auto insurance policy would typically cover these damages if the vehicle owner has comprehensive and collision coverage.