Q&A about earthquake insurance
Most policies don't cover damage
Q: Is earthquake damage covered in a standard insurance policy?
A: Earthquakes are not covered under standard U.S. homeowners or business insurance policies. Coverage is usually available for earthquake damage in the form of a supplemental policy.
A: Earthquake insurance provides protection from the shaking and cracking that can destroy buildings and personal possessions. Coverage for other kinds of damage that may result from earthquakes, such as fire and water damage due to burst gas and water pipes, is provided by standard homeowners and business insurance policies in most states.
A: The cost of an earthquake policy varies depending on factors, including the carrier and the policyholder's desired level of coverage. But the Oklahoma Insurance Department said that typically an Oklahoma homeowner might expect to pay between $100 and $150 per year for earthquake insurance.
A: Earthquake insurance policies often carry a deductible, generally in the form of a percentage rather than a dollar amount. Deductibles can range anywhere from 2 percent to 20 percent of the replacement value of the structure. This means that if it costs $100,000 to rebuild a home and the policy had a 2 percent deductible, the policyholder would be responsible for paying the first $2,000.
A: Cars and other vehicles are covered for earthquake damage by comprehensive insurance, which also provides protection against flood and hurricane damage to vehicles as well as theft. The coverage is optional.