Earthquakes can cause significant structural damage to your home, belongings, and property, leaving you with costly repairs. Unlike other perils, earthquake damage is not covered under standard homeowners insurance policies and requires a separate earthquake insurance policy. If you’ve experienced earthquake-related damage, here’s a step-by-step guide to navigating the insurance claims process efficiently.
Step 1: Ensure Safety First
Before assessing damage or starting a claim, prioritize your safety:
Check for Immediate Hazards: Look for gas leaks, electrical damage, and structural instability.
If you smell gas, turn off the main gas supply and contact the utility company.
Avoid using matches, candles, or electronics near damaged gas lines.
Inspect for Structural Safety: Look for cracks in walls, floors, and ceilings. Do not enter if there is a risk of collapse.
Shut Off Utilities: If water pipes, gas lines, or electrical systems are damaged, shut them off to prevent further hazards.
Tip: Follow official guidelines to ensure your home has been deemed safe before re-entering.
Step 2: Document the Damage
Documenting the damage thoroughly will strengthen your insurance claim. Take the following steps:
Take Photos and Videos: Capture detailed images of:
Cracks in walls, floors, foundations, chimneys, and ceilings
Roof damage, collapsed structures, and broken windows
Damage to personal belongings, such as furniture, electronics, and appliances
Exterior damage to driveways, retaining walls, or garages
Make an Inventory of Damaged Items: List all damaged belongings with descriptions, purchase dates, and estimated values.
Measure and Note Damage: Document the size and location of cracks, shifting foundations, and other structural issues.
Tip: Save receipts for any temporary repairs or mitigation efforts you make after the earthquake.
Step 3: Check Your Earthquake Insurance Policy
Earthquake damage is only covered if you have a separate earthquake insurance policy. Review your policy to understand:
Dwelling Coverage: Covers repairs to the home’s structure, including the roof, walls, foundation, and attached structures.
Personal Property Coverage: Pays for damaged or destroyed belongings inside your home.
Loss of Use Coverage: Covers temporary housing, meals, and other living expenses if your home is uninhabitable.
Deductible: Earthquake insurance policies typically have higher deductibles, ranging from 10% to 20% of the insured property value.
Tip: Standard homeowners policies do not cover earthquake damage, but you may purchase earthquake coverage through private insurers or programs like the California Earthquake Authority (CEA).
Step 4: Contact Your Insurance Company
Report the earthquake damage to your insurance provider as soon as possible:
Provide your policy number and contact details.
Share a brief description of the damage and its impact on your property.
Submit preliminary documentation, such as photos, videos, and lists of damaged belongings.
What Happens Next:
Your insurer will open a claim and assign an adjuster to assess the damage.
You will receive instructions regarding next steps, temporary repairs, and covered expenses.
Tip: File your claim promptly, as many insurers have specific time limits for reporting earthquake damage.
Step 5: Prevent Further Damage (Mitigation)
To protect your home and property from worsening damage, take the following steps:
Cover Openings: Use tarps, boards, or plastic sheeting to cover roof or wall damage.
Secure Belongings: Move undamaged personal items away from unstable areas.
Address Water or Gas Leaks: Contact professionals to repair broken gas lines or water pipes immediately.
Tip: Keep receipts for any materials, equipment, or professional services used for temporary repairs—these costs may be reimbursed by your insurer.
Step 6: Meet with the Insurance Adjuster
Your insurance company will send a claims adjuster to evaluate the damage. Here’s how to prepare:
Walk the Adjuster Through Your Home: Show all structural damage, including cracks, shifts, and collapsed areas.
Provide Documentation: Share your photos, videos, and itemized lists of damaged personal property.
Request a Written Report: Ask the adjuster to document their findings, including repair and replacement cost estimates.
What the Adjuster Will Do:
Determine whether the damage qualifies for coverage under your policy.
Estimate the costs for repairs or replacement.
Provide a breakdown of expenses for structural damage and personal property.
Tip: Take notes during the inspection and clarify any questions about coverage or the claims process.
Step 7: Obtain Repair and Replacement Estimates
While waiting for the insurance settlement, gather repair estimates from qualified professionals:
Structural Engineers: Assess foundation and structural issues caused by the earthquake.
General Contractors: Provide detailed estimates for rebuilding walls, floors, ceilings, and roofs.
Specialized Repairs: Obtain quotes for electrical, plumbing, and HVAC systems if damaged.
Tip: Share all estimates with your insurance adjuster to ensure alignment with their assessment.
Step 8: Review and Finalize Your Settlement
Once the adjuster completes their evaluation, you will receive a settlement offer. Follow these steps:
Review the Offer Carefully: Ensure all necessary repairs and replacements are included.
Compare to Estimates: Cross-reference the insurer’s settlement with contractor estimates to confirm accuracy.
Negotiate If Needed: If the settlement seems insufficient, provide additional documentation and request a reassessment.
Tip: If disputes arise, consider hiring a public adjuster to help advocate for a fair settlement.
Step 9: Begin Repairs and Replace Belongings
Once your settlement is approved:
Repair Your Home: Work with licensed contractors to restore your home to its pre-earthquake condition.
Replace Personal Property: Use your personal property coverage payout to replace damaged belongings.
Track All Costs: Keep receipts and invoices for all repairs and replacements to ensure proper reimbursement.
Tip: Verify that all work is completed to your satisfaction before finalizing payments to contractors.
Step 10: Protect Your Home from Future Earthquake Damage
After repairs are complete, consider improvements to strengthen your home against future earthquakes:
Reinforce Foundations: Secure your home to its foundation with anchors or bolts.
Install Seismic Bracing: Add bracing to chimneys, walls, and water heaters.
Use Flexible Pipes: Install flexible gas and water lines to reduce the risk of leaks.
Secure Heavy Furniture: Anchor bookshelves, cabinets, and appliances to walls to prevent tipping.
Tip: Retrofitting your home for earthquakes may qualify for insurance discounts in certain areas.
Frequently Asked Questions (FAQs)
1. Does homeowners insurance cover earthquake damage?
No, standard homeowners policies exclude earthquake damage. You need a separate earthquake insurance policy to be covered.
2. What does earthquake insurance cover?
Earthquake insurance typically covers:
Structural repairs (dwelling coverage)
Personal property replacement
Additional living expenses (ALE) if your home is uninhabitable
3. How high is the deductible for earthquake insurance?
Deductibles for earthquake policies are usually between 10% and 20% of the home’s insured value.
4. How long does the claims process take?
The process can take several weeks to months, depending on the extent of the damage and claim complexity.
5. What if my settlement is too low?
You can provide additional evidence, request a reassessment, or hire a public adjuster to negotiate on your behalf.
Final Thoughts
Recovering from earthquake damage can be challenging, but taking these steps will ensure a smoother insurance process. Documenting the damage, understanding your earthquake policy, and working closely with your adjuster will help you secure the coverage you need to restore your home.
If you need expert assistance navigating your claim, understanding your policy, or organizing repairs, Loti is here to help. Contact us today for guidance and support to rebuild with confidence!