of damage from these causes is largely a function of where you're
located, however both are routinely excluded from property insurance,
and coverage available separately.
is fairly widely available, and offered by government or government-subsidized
sources. Private insurers also offer coverage.
insurance is usually offered with a flat deductible, usually $100-500
or more, however quake is normally written with a percentage deductible
- NOT a percentage of the loss, but of the property insured. A $100,000
building with a 10% deductible would need to suffer a loss exceeding
$10,000 in order for you to derive any benefit from insurance. Strictly
speaking, the building would need to suffer a loss exceeding the
sum of your paid premiums plus your deductible in order for you
is a well-known fact that huge flood losses occur in areas not even
remotely considered flood-prone. Keep in mind that basically any
accumulation of surface water is considered a flood and typically
excluded from standard property insurance. Any property located
in a configuration where a sudden downpour is likely to produce
flooding should be considered for insurance, as the premiums and
deductibles are quite reasonable.
important aspect of the earthquake exclusion is that most standard
fire insurance policies will still pay for fire damage, even if
it originated in an earthquake. Historically, much if not most heavy
damage outside the immediate epicenter of quakes has resulted from
fire, not directly from the ground movement. (Broken gas lines spark
off and produce significant damage.) This is particularly true in
well-built, structurally sound frame buildings. Frame buildings
built to modern code are highly resistant to structural damage due
to their ability to absorb shock and, to some extent, to flex. Quake
damage to these buildings will often consist of cosmetics, i.e.
cracked drywall and plaster, etc. In such instances, it is not especially
uncommon for insured property owners to face costly repair bills
which still do not exceed their deductible.
is an excellent web source for earthquake information and insurance
known as ICAT. These folks
will refer you to an agent, and produce a report grading your earthquake
risk, along with quote