Earth quake damage not covered by most insurance policies

Commissioner of Insurance Alice A. Molasky-Arman urged Nevadans to prepare for future emergencies, noting the recent devastating earthquake that struck on Feb. 21 near Wells, Nevada and the increased earthquake activity west of Reno.

"It is important to remember that earthquake damage is not covered in a standard homeowners insurance policy. Talk to your insurance agent to learn more about an earthquake insurance to help you make an informed decision whether to obtain earthquake insurance," said Molasky-Arman.

The Commissioner strongly recommends that residents create or update an emergency plan to be used in the event of a disaster, such as an earthquake, fire or flood. The plan could outline an escape route, list emergency numbers, and other important emergency information. She also urged residents to inventory their assets, a helpful step to financial recovery when filing an insurance claim after a major loss.

"Review your insurance policies to make certain you are adequately protected. Do not let a disaster wipe out your finances and belongings in seconds," cautioned Molasky-Arman.

In an event of an earthquake occurring of sufficient magnitude (ranging between 3 and 4), many insurers will discontinue offering the coverage until a specific period of time has elapsed. For instance, the November 15, 1995 earthquake of magnitude 4.6 near Bordertown prevented Nevadans in the Reno-Sparks and Carson City areas from obtaining earthquake insurance for up to 60 days.

Earthquake endorsements contain a separate deductible, either as a percentage of the amount of coverage, or as a specified dollar amount. Masonry veneer over wood is often excluded from coverage. Typically, earthquake insurance provides coverage for events related to earth movement and seismic shocks, including landslides, settlement, mudflow and the rising, sinking and contracting of earth if the damage sustained is attributable to an earthquake; however, water damage caused by an earthquake is usually excluded.

For information and tips on earthquake preparedness, visit the Nevada Seismological web site at http://www.seismo.unr.edu.