January 15, 2015
Earthquake Insurance – What to know before you buy

Due to the recent seismic activity in eastern Connecticut, the Connecticut Insurance Department is offering the following consumer information on earthquake insurance:

Not standard coverage: Earthquake coverage is not included in a standard homeowner’s policy but can be purchased for an additional cost.
Deductibles: Earthquake insurance generally carries a deductible, usually in the form of a percentage rather than a flat dollar amount. Deductibles can range from 5 percent to 25 percent of the replacement value of the home. To understand how a deductible is calculated read your policy’s “declaration page,” the summary usually attached to the front of your policy, or talk to your agent.
What is covered: Earthquake insurance covers repairs needed because of earthquake damage to homes and may include detached structures, such as garages. It covers the cost to remove debris and also pays for extra living expenses if the homeowner has to relocate during rebuilding.
Moratorium: Insurance companies may put a hold on selling earthquake insurance for a period of time in an area for a period of time if seismic activity is present.
In buying any new insurance, the Department advises consumers to discuss their needs thoroughly with their agent or company to understand what they are buying, what it covers, what it costs and what is excluded.
Anyone with questions, concerns or complaints about this or any insurance matter should contact the Connecticut Insurance Department’s Consumer Affairs Unit.
Ask a question or file a complaint online
Consumer Helpline: 800-203-3447 or 860-297-3900