What You Need to Know About Earthquake Insurance
As if 2020 hasn’t been difficult enough as we all deal with the immense challenges presented by the global COVID-19 pandemic, on August 9th, a magnitude 5.1 earthquake struck North Carolina, about two miles southeast of Sparta, which could be felt across the state. This earthquake is reported to be the second-strongest earthquake to occur in North Carolina since 1900. Add to that, the natural disasters (hurricane, tornadoes and fires) that occurred the week before and it is apparent, this has been one tough and crazy year!
Of course, when disaster strikes, one of the first questions on most homeowner’s minds is “Is this damage covered by my insurance”? Sadly, many in Western North Carolina – and other areas where earthquakes are a rare occurrence - find out that the answer is "no."
So, what do you need to know when it comes to insurance protection for your home and your family should an earthquake strike where you live?
Here is some helpful information that we hope will be useful when it comes to earthquake coverage:
· Homeowners policies do not cover losses caused by earthquakes. However, direct loss by fire, explosion or theft resulting from earth movement is covered.
· Dwelling policies do not cover losses caused by earthquakes. However, if fire or explosion ensues, the policy will cover the ensuing loss.
· An endorsement may be purchased to cover earthquake damage on a homeowners or dwelling policy.
o The endorsement provides coverage for direct loss to dwelling, other structures and personal property caused by an earthquake.
o One or more earthquake shocks that occur within a 72-hour period constitutes a single earthquake.
o The endorsement does not increase the limits of liability stated in the homeowners or dwelling policy.
o There may be exclusions on the endorsement such as flood, filling land and exterior masonry veneer.
o Deductibles are the amount that the homeowner is responsible to pay on each claim. There may be separate deductibles for the dwelling, other structures, and personal contents.
A home is often one of your biggest and most prized assets. To best protect it, it's important to ensure you have the right coverage, so speak to us or one of our amazing agents to learn more.
Additional consumer guidance can be found at: