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Risk of damage from these causes is largely a function of where you're located, however both are routinely excluded from property insurance, and coverage available separately. Insurance is fairly widely available, and offered by government or government-subsidized sources. Private insurers also offer coverage. Flood insurance is usually offered with a flat deductible, usually $100-500 or more, however quake is normally written with a percentage deductible - NOT a percentage of the loss, but of the property insured. A $100,000 building with a 10% deductible would need to suffer a loss exceeding $10,000 in order for you to derive any benefit from insurance. Strictly speaking, the building would need to suffer a loss exceeding the sum of your paid premiums plus your deductible in order for you to benefit. It is a well-known fact that huge flood losses occur in areas not even remotely considered flood-prone. Keep in mind that basically any accumulation of surface water is considered a flood and typically excluded from standard property insurance. Any property located in a configuration where a sudden downpour is likely to produce flooding should be considered for insurance, as the premiums and deductibles are quite reasonable. An important aspect of the earthquake exclusion is that most standard fire insurance policies will still pay for fire damage, even if it originated in an earthquake. Historically, much if not most heavy damage outside the immediate epicenter of quakes has resulted from fire, not directly from the ground movement. (Broken gas lines spark off and produce significant damage.) This is particularly true in well-built, structurally sound frame buildings. Frame buildings built to modern code are highly resistant to structural damage due to their ability to absorb shock and, to some extent, to flex. Quake damage to these buildings will often consist of cosmetics, i.e. cracked drywall and plaster, etc. In such instances, it is not especially uncommon for insured property owners to face costly repair bills which still do not exceed their deductible. There is an excellent web source for earthquake information and insurance known as ICAT. These folks will refer you to an agent, and produce a report grading your earthquake risk, along with quote |