Fuller Insurance Agency

When will the next major earthquake occur?

Seismologists (www.earthquake.usgs.gov) still cannot predict exactly when a major trembler will hit a given area. Are you prepared for your own safety and the financial loss that may occur to your property? Standard property insurance policies do not offer coverage for damage due to earthquakes. Coverage for earth movement, includes, landslides, mud flows, sinking, rising/shifting of the ground require a separate policy.

• How will you pay if your building is damaged?
• Can you afford to rebuild and pay for the damages on your own?

Two Important Things About Earthquake Insurance

1. Most commercial insurance policies do not cover earthquake damage.
2. Even if you operate a business in an area where earthquakes are not common, you may still need earthquake insurance.

Examples of Earthquake coverage offered by some carriers:

• Building Coverage
• Business Personal Property Coverage
• Tenant Improvements and Betterments Coverage (TIB)
• Additional Property Coverage
• Business Income/Extra Expense/Loss of Rents Coverage
• Ordinance or Law Coverage
• Coverage Extensions (Coverage provided within the limits of insurance)
• Debris Removal Coverage
• Preservation of Property
• Pollution Clean Up and Removal
• Electronic Data Processing Coverage
• Optional Coverage Extensions
• Earthquake Sprinkler Leakage Coverage

Earthquake Insurance Options

Most commercial insurance policies do not cover damage caused by an earthquake, but coverage can be purchased as an endorsement or a separate policy. You may be able to choose to purchase earthquake insurance from the same company that provides your commercial insurance, from a specialized earthquake insurance provider, or from an independent organization such as the California Earthquake Authority (CEA).

What Does Earthquake Insurance Cover?

Earthquake insurance provides coverage if your business property is damaged by an earthquake. Standard commercial business policies will not cover earthquake damage. Earthquake insurance is a separate endorsement you must buy and add to your commercial policy. An earthquake endorsement generally excludes damages or losses from floods and tidal waves - even when caused or compounded by an earthquake. However, if you experience a loss due to a landslide, settlement, mudflow, or the rising, sinking and contracting of earth, your endorsement may cover it if the damage resulted from an earthquake.

There are several options to consider when purchasing earthquake insurance, including:

• Does the policy cover only your commercial business property? Are other structures, such as parking garages, also included?
• Will your policy pay for the contents of your business property and for additional business expenses if your business operation is badly damaged or destroyed?
• Are there any exclusions or limitations to coverage?
• What deductible must you pay before the insurance kicks in?

Earthquake insurance needs can vary significantly - talk to us today to find out how to get the best price and value on earthquake insurance for you!