Insurance Industry Offers Reminders on Earthquake Coverage

1/14/2010

In the aftermath of a cataclysmic earthquake in Haiti that may have killed well over 100,000 people, the insurance industry is reminding homeowners in the U.S. about the importance of securing the right level of coverage.

The Insurance Information Institute reminds people that earthquakes are not covered under standard homeowner insurance policies, and is instead generally purchased under a supplemental policy. Still, some earthquake-related damages may be covered under a standard policy. One example provided by the I.I.I. is a fire caused in the aftermath of an earthquake.

For residents of the earthquake-prone state of California, the organization adds that there is the option of securing coverage through their homeowner insurance company from the publicly managed California Earthquake Authority.

According to the U.S. Geological Survey, fatal earthquakes occurred in 15 countries in 2009, with the only U.S. fatality occurring in one that took place on American Samoa.

Worldwide, at least 1,700 deaths around the world were blamed on earthquakes in 2009, which was far lower than the 2008 figure - largely because of the major one that took place in China that year.

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