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  • Last modified 2556 days ago (Nov. 17, 2011)

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Earthquakes not covered by regular insurance

Earthquakes in Oklahoma the weekend of Nov. 5 were felt in parts of Kansas, prompting Kansas Insurance Commissioner Sandy Praeger to address how earthquakes are covered by insurance.

Insurance against earthquakes is not part of regular homeowners, renters, or condominium insurance policies.

“If your insurance company offers it, coverage can be added by including an endorsement to your policy or by purchasing a separate earthquake policy,” Praeger said. “In either case, you will pay an extra premium, just as you do for flood insurance, which is also not part of a regular policy.”

Praeger offered other considerations:

  • Coverage can protect dwellings, other structures like a garage, and personal property. It may cover increased costs to meet current building codes and costs to stabilize land under the dwelling.
  • Coverage does not include damage to vehicles. That may be covered under an automobile policy. Praeger urges individuals to check with an insurance agent or company to verify coverage.
  • Insuring a dwelling for its appraisal or loan value may mean you only have enough coverage to repay your lender. Coverage should be occasionally reviewed to be sure it doesn’t drop below home replacement cost.
  • Most insurers won’t sell new earthquake insurance for one to two months following an earthquake.
  • The deductible for earthquake insurance is usually 10 to 20 percent of the coverage limit. In contrast, a regular homeowners policy usually has a flat deductible.

Last modified Nov. 17, 2011

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