We have seen many media releases on the recent earthquakes in Haiti and in Chile. Aftershocks have been felt around the globe. Such seismic activity cannot be blamed upon global warming as some would like to have you believe. We can’t even blame it on George Bush. It is the way it has been since the beginning of time. The earth just moves and the geologic plates continue to realign.
There, I just told you everything I know about geology. What I do know is the subject of earthquake insurance. It is available in much of the world and in most of the United States. When I say most, I mean that many insurance companies may not offer quake insurance in all regions of the United States. Some areas are more prone to earthquakes than others. In these areas, the insurance companies may establish a maximum exposure they are willing to accept and once this capacity is saturated, the company will not accept any new risks. If capacity is saturated for one company, you may have to pursue more than one policy to adequately protect your property.
Whether you own property in a heavy quake prone area or in a fringe area that is thought to be less subject to quakes, you may want to contact an insurance agent for a premium quote on such coverage. The price will depend upon the intensity of the area and the frequency and severity of your seismic activity.
It doesn’t matter whether you own residential or commercial property; earthquake insurance may be an important addition to your insurance portfolio. Many banks and financial institutions require earthquake insurance before financing property.
There is one important point that I must make. Most insurance policies whether homeowners or commercial property packages don’t include coverage for earthquake. (Flood is also not usually included in such coverage packages. That is a topic for another time.) Quake must be endorsed or written on a separate policy.
So give your agent a call. Depending on your region, you may find the premium cost is affordable.
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