Following the recent 8.8 magnitude earthquake near Russia and the resulting tsunami waves, questions about insurance coverage for such catastrophic events have understandably come to the forefront. As an independent insurance agency serving the Western New York community, we believe it is critical to clarify what a standard homeowners or commercial insurance policy does—and does not—cover in these situations.
Unfortunately, many policyholders assume they are protected against all forms of natural disaster. However, both earthquake and flood damage are typically excluded from most standard property insurance policies.
Flood Damage Is Not Covered by Standard Insurance
Flooding, including damage caused by tsunami waves or storm surge, is not covered under traditional homeowners or commercial property insurance. This is a common misconception that often only comes to light after a loss occurs.
To obtain protection against flood damage, individuals and businesses must purchase a separate flood insurance policy, either through the National Flood Insurance Program (NFIP) or a private insurer. It is important to note that most flood policies include a 30-day waiting period before coverage takes effect.
Earthquake Damage Is Also Excluded
Similarly, most property insurance policies exclude losses resulting from “earth movement,” a category that includes earthquakes, landslides, and other seismic activity. This exclusion applies even if the structure sustains direct damage from the earthquake prior to any flooding.
In areas like Western New York, where the risk of earthquakes is relatively low, earthquake coverage can often be added as an endorsement to an existing homeowners or business policy. In higher-risk regions, such as parts of California, earthquake coverage typically must be obtained through a separate standalone policy.
Recommendations for Policyholders
To ensure appropriate protection, we recommend the following:
- Review your current insurance policies to understand what exclusions apply.
- Consult with your agent about adding earthquake coverage as an endorsement if you are in a lower-risk area.
- Consider purchasing flood insurance, especially if your property is near a body of water or located in a designated flood zone.
- Be proactive—do not wait for a natural disaster to review or update your coverage.
