Insurance Coverage for Earthquake Damage?

Illinois is home to four seismic zones including the New Madrid Fault Line, Wabash Valley Seismic Zone, Sandwich Fault Line, and Plum River Fault Line. A major earthquake in Illinois is likely to cause serious property damage. September is National Preparedness Month, and a good time to put a plan in place to pay for damage caused by earthquake.

Serious seismic events are difficult to predict and result in widespread, devastating loss. With the exception of fire, standard homeowners insurance policies do not cover property damage caused by earthquake. However, many insurers offer earthquake coverage as a policy add-on.

Pricing is based on several factors including the proximity to a seismic zone, dwelling construction materials, dwelling coverage limit, and earthquake deductible. Earthquake insurance provides catastrophic protection. Rather than the policy's $500 or $1,000 flat deductible, earthquake deductibles are a percent of the policy's dwelling limit. Typical earthquake deductibles range from two to fifteen percent. A local homeowners insurance agent can provide details on pricing and coverage specifics.