When insureds meet with me a frequently asked question is:

What exactly is covered by earthquake insurance?

Insurance coverage is dictated by what event causes the actual damage to your building.

For example:

An earthquake hits and it is the earthquake itself which snaps the building supports then that would be an earthquake loss and would be covered by earthquake insurance.

Now, let’s suppose that the same earthquake cracks the gas line to the building and does no other damage. And then it just so happens that 15 minutes later a smoker walks down the street and ignites the gas causing an explosion which ultimately destroys the building. In this case it would be a fire loss and not an earthquake loss so the damage would  be covered under your fire insurance policy.

When a loss happens it all comes down to what causes the damage and that determination could mean a huge difference in the amount you will end up paying for your deductible.  It’s no surprise that the insurance company adjuster will make this call in a way that is most advantageous to the insurer.

Having a broker that has your interests at heart and who will refer you with the right professionals to help you with your claim could save you thousands of dollars should a loss like this occur.

Note: There is an email link embedded within this post, please visit this post to email it.