Since the catastrophe that hit Turkey and Syria on 20 February 2023 at 19:45, Earthquakes are again the talk of the town.
Property owners started asking themselves, are we insured against an earthquake?
It is only when the risk happens that we start asking ourselves such questions. Before that we chose the cheapest premiums, no questions asked.
Earthquake damages (by shock or by fire) can be covered, but it depends on the insurance contract and its conditions.
Your broker is in charge of answering all your questions.
Fire policies must be extended to cover earthquake risks, while all-risk policies cover the risks of natural perils, including earthquakes.
Traditional earthquake insurance covers damage caused by an earthquake by insuring “pure loss”. This means that they will assess the value of the items lost at the time of the claim and reimburse you for that specific amount.
Parametric insurance is a relatively new approach that insures policyholders against specific events using established parameters that apply to everyone to determine the cost of damages. Payments are triggered if defined parameters agreed in the contract are met for example, when an earthquake reaches or exceeds a certain ground shaking intensity.
Do you know that “earthquakes don’t kill people, but buildings do”? Indeed, most deaths from earthquakes are caused by falling buildings or other human constructions during an earthquake.
Earthquakes located in isolated areas far from the human population rarely cause fatalities.