Maximize Your Earthquake Insurance Claim with Professional Help

Dealing with the aftermath of an earthquake is stressful, and then you’re faced with making earthquake insurance claims. Many homeowners find this challenging, particularly if they’re unsure where to begin, especially while also coping with displacement. I grew up in an area with frequent earthquakes and have experienced it firsthand, even when I was young.

This can impact anyone. The process might appear even more frustrating when your home is damaged.

But you are not alone. Understanding your policy and taking the right steps can help the process and avoid expensive mistakes when filing insurance claims.

Table of Contents

• Understanding Earthquake Insurance Coverage
  • What Earthquake Insurance Typically Covers
  • What it Doesn’t Cover
  • Assessing the Damage
• Filing Earthquake Insurance Claims
  • Working with Adjusters
  • Understanding Deductibles
  • Dealing With Denials of Earthquake Insurance Claims
  • Ways to Mitigate Earthquake Risk
  • Why Get Earthquake Coverage?
• Choosing The Best Earthquake Coverage Policy
  • How Premiums Vary
  • Common Mistakes When Filing Earthquake Claims
• Conclusion

Earthquake insurance is a separate policy that covers damage to your home from an earthquake. Unlike standard homeowners insurance, it addresses things like damage to your dwelling, loss of personal property, and additional living expenses.

Many might wonder whether additional living expenses cover mortgage costs. This should be detailed in your policy when living elsewhere during repairs or evacuation.

While policies can be helpful, understanding all these terms and how things can be confusing, there’s lots of industry specific information that can help. You can access forms through the National Association of Insurance Commissioners (NAIC) Industry resources.

What Earthquake Insurance Typically Covers

Dwelling coverage takes care of the structure of your home. Personal property coverage, takes care of your belongings like furniture, TVs, and electronics, including any appliances.

Loss of use, or additional living expenses (ALE), pays for temporary living arrangements. This includes a hotel room, temporary housing (rental) or apartment, along with temporary phones if needed.

What it Doesn’t Cover

It’s important to know what earthquake insurance doesn’t cover. Standard homeowners policies typically cover damages from things like fire, even if the fires start because a gas line ruptures.

Flood damage and other external water sources are other issues. For details, it’s best to review a glossary of insurance terms, which can give clarity in what you might be looking for.

This kind of damage won’t be covered through your earthquake coverage if you live in California, or other states. Flood insurance addresses that, although having it would mean that any damage can be fixed.

Assessing the Damage

Newer systems use lasers to assess damage more precisely. The idea of an individual coming out is dated compared to how newer technologies work.

Carefully inspect your property for any signs of damage, including cracks in walls, ceilings, and foundations. This also means looking at concealed areas on the property.

Filing Earthquake Insurance Claims

After an earthquake, taking the proper steps will set you up for a smoother claim. Notify your insurance provider promptly.

This includes the broker and carrier, even if it is something small that you noticed on the property. Even something that might not go over the deductible should still be reported to them.

Document all the losses thoroughly by taking photos and videos before any repairs. This provides strong evidence, detailing everything for the claim.

Keep detailed records of all communication with your insurer, including names, dates, and discussion summaries. Make sure your documentation is organized. This shows thoroughness.

Working with Adjusters

The insurance company will send an adjuster to assess the damages. Get a second opinion, as adjusters may have different incentives.

Be present during their inspection and show them all damage you’ve found, including hidden places. A great resource is from United Policyholders for homeowners and businesses which covers many earthquake claim tips.

Be thorough, because you don’t want things being “found” later.

Understanding Deductibles

Earthquake insurance deductibles typically range from 10% to 20% of your coverage limit. Depending on your policy, there can be separate deductibles.

The NAIC states, if your home is insured for $300,000 and has a 10% deductible, then you’re responsible for the first $30,000 of the earthquake claim. Below is a practical example:

If a 7.5 earthquake happened and it’s been 50 years in the New Madrid Seismic Zone, there is risk.

Dealing With Denials of Earthquake Insurance Claims

If your insurance claim is denied. request a detailed, written explanation.

Consider help from an attorney to review options. There’s also support from the federal government.

Ways to Mitigate Earthquake Risk

Retrofitting involves upgrades to increase your home’s resistance to earthquakes. Learn more at earthquakecountry.org/step4/ for advice on securing it.

Here’s ways to reduce risk before an earthquake:

• Bolt your home to the foundation.
• Install automatic gas shut-off features, since earthquakes cause lines to shake, rupture and break.
• Brace water heaters and chimneys to increase strength.
• Strengthening crawl spaces with plywood, as outlined at earthquakecountry.org.

Why Get Earthquake Coverage?

According to the United States Geological Survey (USGS), many states face earthquake risk, showing many should consider earthquake insurance. The USGS offers a mapping tool to display recent seismic activity over 2.5, helping you learn and stay informed.

Seeing it firsthand can encourage action. Consider where you would stay, temporary housing or covering damages, especially when needing help during repairs.

Also, ask the company about the insurance claim timeline. This helps determine the time to file a claim.

Many groups like the National Earthquake Hazards Reduction Program facilitates federal collaboration. They cooperate with state governments.

This aids those who are affected, emphasizing protection.

Choosing The Best Earthquake Coverage Policy

When seeking coverage, obtaining quotes is crucial. Begin by gathering specifics about the policy that suits your residence, also factor in the expense of rebuilding post-disaster.

It is wise to reassess coverage periodically, accounting for changes. These figures tend to increase over time.

How Premiums Vary

Premiums are influenced by several factors, including the home’s location, construction expenses, structural design, the chosen deductible, and even when it was built. Properties valued over one million may experience increased premiums.

Homes built during the 1980s might find savings by retrofitting or showing any documentation for updates made. Some insurance companies also have their own working groups and task force teams to find solutions for customers to help cover damage.

Common Mistakes When Filing Earthquake Claims

A frequent error in insurance claims is inaccurately assessing repair costs. Secure precise bids for all damages for the claims process.

Do not minimize the extent of damages either. Always capture photographs and maintain an inventory to bolster valuations.

Refrain from hastily settling and carefully document any observed damage. If your policy has a dwelling limit and the MS is exceeded, you should also have a discussion with the claims adjuster.

Conclusion

Managing earthquake insurance claims can seem challenging. However, with the right approach and knowledge, it doesn’t have to be overwhelming.

Understanding your policy and following established procedures is important. Proper adherence to established protocols enhances the process for everyone impacted by the ground shaking.

By taking the right steps you can receive the compensation you deserve to cover damage from natural disasters. Speaking with insurance regulators and finding resource centers can also help homeowners and businesses.