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Property & Casualty Insurance/General Insurance coverage in event of a Earthquake.


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QUESTION: Dear Dominick‎

Can Apartment / Bungalow property owners claim their Insurance on occurrence of earthquake ?.

Do General Insurance policies provided by Public or Private limited cos cover insurance coverage for natural disaster such as Earthquake ?.

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

ANSWER: Dear Prashant:

Many policies do cover earthquake, however without seeing your policy, it's impossible for me to read if you are covered by earthquake or not.  I would recommend that you call your insurance agent/broker to discuss the coverage that you have with your current policy.  In addition, they can provide you with a checklist of perils that you are insured for.  If earthquake is not a covered peril, then you may want to ask if it can be added to your policy for an extra fee.

I hope this information has helped you.


Dominick Belinchak

---------- FOLLOW-UP ----------

QUESTION: Dear Dominick

Thank you.

The "Property Protection from Earthquake" Non Life Insurance becomes an interesting product.

Example :

A Property (Flat in a building, Apartment, Bunglow) is worth INR 80 lacs (current market value) and contents within the property is INR 10 lacs. Policy commencement Date : June, 2013.

A "Property Protection from Earthquake" Non Life Insurance Policy is purchased from the company/corporation (insurer) which will cover the property structure and contents protection in event of a earthquake.

The insured is paying Rs 5 lacs premium yearly. Now Earthquake happens in June 2018 i.e. after five years. The property market value in June 2018 is INR 1 crore, 30 lacs.

The insurer while processing the claim for his property and contents in June 2018 will receive

INR 1 crore, 40 lacs (1 Crore, 30 lacs + 10 lacs)


INR 90 lacs (80 + 10) ? from the insuring company.

Note : INR = Indian Rupees currency.

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar


The property value or market value at the time of loss has nothing to do with what the insurance company will pay you for your loss.  Your insurance coverage is based on how much it would cost to rebuild your existing home in the event of a loss, not including land costs.

In the event of a loss, your insurance company must "make you whole", which means to either pay to repair the home back to it's condition just before the earthquake or pay to replace the home with "like, kind and quality".  When a claim is made, make sure you take into consideration the deductible.

It's also important to make sure that your insurance policy has enough coverage in case your home has to be rebuilt (including tearing down the home after an earthquake, hauling off the debris and reconstructing the home).  You may want to speak with a few licensed contractors in your area and ask them how much it would cost to rebuild your home in the event of an earthquake.  Perhaps they can put together a written proposal. Based on their answers, you'll want to make sure you pass along that information to your insurance agent/broker for their underwriter to review.  The last thing you want is to be underinsured when a loss occurs.


Dominick Belinchak

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Dominick Belinchak, Insurance Adjuster


Property & Casualty Insurance Claims -- Residential & Commercial. I've worked for approximately 20+ insurance companies and have adjusted just under 1,000 claims, including residential & commercial losses that involve business interruption, fire, smoke, pipe break, hurricane, sinkhole, flood, water damage, mold, theft, vandalism, rental properties, appliance water leaks and others. If you are hitting a "brick wall" with your insurance company or insurance adjuster, or have a coverage question, please feel to ask. I'm here to help you!


Texas Independent Insurance Adjuster 2004-current Florida Insurance Adjuster 2009-2014

BS Business Administration USF (Tampa) -- 1992

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