You never know what perils lurk just around the corner, as the Aug. 23 East Coast earthquake proved. That’s why it’s important to stay in close contact with your insurance agent, who can assist in finding affordable coverage for risks that we typically do not associate within our geographical location.
The specialists at Allegheny Insurance Services want to remind you that they’re available for consultation on a number of issues, including earthquakes! A few things to consider:
Earthquakes bring to mind a number of issues: how likely an earthquake will occur at any location, the amount of insurance coverage on property in the area, and what coverage is provided by such insurance.
Since earthquakes cannot be prevented, predicted or avoided, the best ways to cope with this threat are loss prevention and insurance. Loss prevention by way of building construction codes, building materials, and community preparation are very beneficial at lessening destruction and injuries. Even so, it does not totally mitigate all losses. Insurance then is the way to cover those unavoidable losses.
Earthquake coverage insures against loss caused by an earthquake. Loss or damage caused by earth movement is excluded by all three primary causes of loss forms.
Coverage for earthquake damage is available in three different ways: losses may be covered by using “an earthquake cause of loss form.” A difference in conditions (DIC) policy may be purchased with earthquake as a covered cause of loss. Or a separate earthquake policy may be purchased from a nonstandard insurance company.
The first two options are the most cost effective, but the nonstandard market may be the only place to obtain this coverage in certain earthquake-prone areas or with certain types of properties. Deductibles are usually expressed as a percentage of the amount of insurance and range from 1% to 10%.
Carriers have different stipulations. Some won’t bind coverage until 72 hours after the last seismic activity, and others wait until 30 days of no recorded activity before coverage can be bound. Stipulations will depend on the carrier you wish to place coverage with.
Remember, Allegheny’s agents can help fill gaps in coverage or answer any questions you might have concerning this type of coverage. For more information or a personalized evaluation, call 304-636-1680.