Millions of people in 42 states are at risk for earthquake damage, but very few have insurance to protect them, according to data from Triple-I.
Earthquakes in the United States aren’t covered by standard homeowners or business insurance policies. Damage caused by earthquakes, such as fire or water damage to burst gas lines or water pipes, is likely covered by standard policies, though. And policyholders could still file claims for business interruption or for additional living expenses, if needed.
But coverage for structural damage, broken items or anything else that occurred due to the earthquake requires the purchase of either an endorsement to an existing policy or a separate earthquake insurance policy.
Twenty-three percent of homeowners who had homeowners insurance said they had earthquake insurance in 2020, up from 15 percent in 2018, according to a Triple-I poll.
Earthquake insurance deductibles range from 2% to 20% of the replacement value of the insured structure. Older or brick buildings typically cost more to insure, while newer or wood frame structures cost less, because they tend to withstand quake stresses better.
Earthquake coverage is available through private providers in most states. California law requires homeowners insurance companies to offer earthquake coverage, but homeowners can decide whether or not to purchase it.
Californians can also opt to purchase coverage through the California Earthquake Authority, a publicly managed but privately funded entity offering earthquake insurance in the state. It’s the largest provider of residential earthquake insurance in the U.S.
The slideshow above highlights the top 10 cities most vulnerable to earthquakes this year, according to Home Gnome.
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