How to File an Earthquake Insurance Claim

Damage caused by earthquakes is generally extensive. However, if you are suitably covered, an earthquake insurance claim can help you rebuild your home to the same quality and style.

Instructions

Difficulty: Moderately Easy

1. When struck by an earthquake, notify your insurance agent about the sustained damage immediately.
2. Take photographs of the damage caused as a proof for later problems and preserve the copies in a safe place.
3. Read the latest copy of your insurance policy and figure out the exact coverage and deductible. In some cases your claim limit may increase. For instance, inflation costs are usually incorporated while determining the limit. Ensure that your claim limit is recalculated by the insurance company.
4. Once you file the earthquake claim, an adjuster will be assigned to you. However, if you feel that the adjuster is incompetent, do not submit to him.
5. Hire professional contractors to assess the damage caused by the earthquake. This is critical, especially if you feel that the adjuster is undermining the damage. Some adjusters may try to rush your claim. Ensure that this does not happen. You can also file a complaint with the insurance company. If the matter does not get resolved, consult an attorney and see what options you may have.
6. Talk to your neighbors and see what kind of claims they may be making. If you live in a rental community or apartment complex, the damage to other people’s homes may be similar to yours. This may give you some sense of how much should be claimed.
   
7. Provide your insurance company with a recorded statement for your claim. Examine your final claim documents carefully before signing.
8. Ensure that the final claims are in accordance with the estimate provided by your own contractor. Insurance companies, as mentioned above, may undermine the estimate.

Tips & Warnings

• Buy a guaranteed or extended earthquake insurance policy, if possible. Such policies provide you with the additional benefit of claiming enough to rebuild your home to the exact same quality as before the disaster. However, the premium for this type of policy may be high.
• If your business has incurred losses, you are entitled to all the benefits mentioned above. In addition to these, you can also file for coverage of losses incurred due to the interruption of your business after the earthquake. However, ensure that all your repairs are completed as soon as possible as the business interruption coverage is applicable for a limited period only.
• Ensure that the adjuster (and the contractor) is a licensed structural engineer. By law you are entitled to have a qualified adjuster.
• Avoid making claims that are too low. Your adjuster may underestimate repair costs. Ensure that the cost of repair is examined by professional contractors, especially those experienced in assessing damage caused by earthquakes.
• Avoid signing waivers. Ensure that your policy does not contain the “release” clause. If it does, get it checked by an attorney for a correct interpretation.
• Avoid accepting checks with some kind of waiver or release language.