Have you thought about what you would do if a natural disaster happened to you? Do you know if your insurance policy would cover your property if it's damaged or a total loss because of the disaster? There are so many disasters occurring today that it's challenging for anyone to keep up, but too, it's becoming the norm, so we may not give them a second thought. Unfortunately, this could be devastating if it happens to you and you're not prepared. Earthquakes are the most widespread earthly disaster currently in the U.S. and cause billions of dollars in damage annually.

The definition of an earthquake

The definition of an earthquake is found in your policy under earth movement. Earth Movement is commonly defined as Earthquake, Landslide, Mine Subsidence, Sinkhole Collapse, and Volcanic Eruption. These catastrophes are generally excluded from the policy with the option to purchase protection. Unfortunately, since there are limitations and large deductibles, purchasing coverage may not put you back in the same financial position before the loss. However, it can significantly reduce the financial burden.

Who’s in danger?

The majority of earthquake fault lines are found in the western portion of the U.S. in states such as CA, WA, NV, UT, OR, MT, ID, WY, CO, AZ, NM, and AK, but they are also located across the country in states like TX, IL, IN, KY, TN, LA, AL, and AR The Federal Emergency Management Agency (FEMA) reported that 84% of earthquake losses are expected in California, Oregon, and Washington. According to the United States Geological Survey, 44 earthquakes have been reported in the U.S. and its territory Puerto Rico as of August 2020. Sixteen of these earthquakes occurred in CA with three of them being a magnitude 5.5 or greater. NOTE: 5.3 magnitude is considered a moderate earthquake, while a 6.3 is a strong earthquake.

Location, location, location…

The Midwest has experienced its share of a few good shakes in the past too. They are not as widely noticed since it doesn't cause as much damage and does not gain as much media attention. So, while earthquakes haven't been a significant issue in the Midwest, it's not out of the question to consider earthquake coverage for protection in case one big enough shakes the shingles off your roof. Coverage can be purchased separately, or in some cases, your insurer may endorse your property policy. Usually, higher deductibles, exclusions, limitations, and provisions apply, but the premiums are reasonable for low hazard areas. Areas more susceptible to earthquakes, such as California, will pay a substantially higher premium and have tighter underwriting guidelines.

What about volcanic eruptions?

Another natural disaster to consider is a volcanic eruption. It is usually included in the Earthquake coverage form. You may not realize it, but the U.S. is also susceptible to volcanic eruptions. They aren't something most of us think much about since we don't hear of them often. However, if you live in Alaska, Hawaii, or near Yellowstone National Park, you might think of them as often as an earthquake. According to the Smithsonian Institution, there are 169 potentially active volcanoes in the U.S. They are mostly located along the Pacific Coast in WA, OR, CA, with the most activity in Alaska. They are also found in OR, ID, UT, NV, AZ, CO, NM, WY (Yellowstone National Park), and HI.

Volcanoes can cause weather issues such as rain, thunder, and lighting, and can have long term climate effect by cooling the world. The lava and ash can damage or destroy property, and the eruptions can cause earthquakes. Hence, the coverage Earthquake and Volcanic Eruption.

Earthquake and volcanic eruption insurance may not reimburse you fully for all damages, but it can help with the costly repairs and additional living expenses it creates. Contact Williams Insurance for a free quote today to see if you qualify for coverage and if it makes sense to purchase coverage.


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