Earthquakes not covered by basic homeowner’s insurance

When Arizonans felt the effects of the magnitude 7.2 earthquake that hit Baja California, Mexico on Easter Sunday, there were reports of swaying buildings, rattled walls, and sloshing pool waters. but no major damage.

“Historically, the Valley of the Sun has not had any measurable earthquakes since 1875,” explains Frank Capparelle, Sr., Founder, President, and CEO of AnCap Insurance.  “Flagstaff is built along some fault lines but there has not been any significant activity in the area that caused damage since 1912.”

Basic homeowners’ insurance policies do NOT cover damage from earthquakes.  Thirty-nine states have experienced earthquakes since 1900, and about 90% of Americans live in areas considered seismically active. Yet only a small percentage of people purchase earthquake insurance, which is an addendum to a homeowner’s insurance policy.

Even in California, where earthquake fears are a part of daily life, only about ten percent of homeowners have earthquake insurance.

When buying insurance, think replacement costs

If you decide to buy earthquake insurance, you need to purchase enough to cover the costs of rebuilding your house and replacing broken possessions,” continues Frank.  “The amount of insurance should be based on replacement and reconstruction costs, NOT the market value of your property and possessions.”

“Additionally, you should find out your rights for filing claims.  It’s important to know how much time you have to file a claim as in some cases, damage from earthquakes is not immediately apparent.”

Contact us for more information about earthquake insurance.

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