Press Release brought to you by Interstate Risk Insurance Services

Earthquake Insurance 101


Earthquakes occur almost every day in Los Angeles, San Francisco, Seattle and Portland. Most are not large enough to cause damage, but sooner or later a big one will hit. The resulting damage, loss of life, and the impact on our economy could be devastating.

There are common mistakes that businesses and individuals make regarding earthquake insurance. Most business owners assume their insurance policy will cover the damages associated with earthquakes and choose not to add additional coverages. Even if a business owner is aware of earthquake insurance, they will opt out of the coverage because they feel it is unnecessary or too costly. That thinking can be devastating to the individual business and to the local economy.  In New Zealand, where damages from a deadly earthquake in 2011 could exceed $12 billion, about 90 percent of homeowners have earthquake insurance.”

We recommend that every business obtain an earthquake quote every year. The quoting process has been simplified and is online at

What does Earthquake Insurance Cover?

Earthquake insurance covers the structure or building, its contents, and additional expenses in the event of an earthquake.

What is the Deductible?

Deductibles can range from 5% – 20% of the building value. Deductibles can be negotiated on larger risks and there are discounts given for higher deductibles.

How are premiums determined?

Earthquake insurance premiums can vary depending on location, age of the building, construction type, and other factors. Premiums are going to be higher in Los Angeles as compared to Phoenix.

Earthquake insurance has its own limitations; it excludes coverage on losses caused by floods and tidal waves (e.g. tsunami,) even if the said disasters are occurring along with an earthquake.

This information is not intended to replace actual insurance coverage terms. It will be actual policy terms and conditions that will govern claims settlements.

12/04/2013 - 14:37


Interstate Risk Insurance Services

Want more news about Interstate Risk Insurance Services? Click here