Exploring Insurance Coverage Following Floods, Earthquakes, and ‘Hurriquakes’

In the wake of Monday’s flood-related damage and potential repercussions from an earthquake, a phenomenon some have coined as a “hurriquake,” it’s essential to grasp the extent of your insurance policy’s coverage. When confronted with the extraordinary convergence of events like a tropical storm and an earthquake, the question of coverage arises.

Janet Ruiz, representing the nonprofit organization Insurance Information Institute, explains that numerous policyholders will likely confront damage due to wind and storms, encompassing scenarios such as fallen trees on their property. “In the realm of a homeowner’s policy, wind-related damages are covered. Instances like shingles being blown off, roof punctures, or shattered windows resulting in water infiltration fall within the scope of typical homeowners insurance,” Ruiz elaborated. “These damages, categorized as covered perils, can be claimed through insurance, deducting your deductible.”

However, the situation changes when it comes to flooding and mudflows, reminiscent of the events observed in San Bernardino County on Sunday. “Flooding doesn’t fall under the umbrella of homeowner’s insurance coverage; a separate flood insurance policy is required. Many individuals obtain this coverage through the National Flood Insurance Program. Nevertheless, there are private insurers who offer flood insurance encompassing water surging from the ground, as well as mud flow and debris resulting from intense rainfall, as exemplified by Southern California’s recent weather patterns,” Ruiz clarified.

For those whose vehicles bore the brunt of the storm’s impact, the insurance process also comes into play. “Comprehensive coverage within an auto policy, while subject to a deductible, addresses flood damage, fallen trees on vehicles, and even damage from wildfires. Comprehensive auto insurance caters to these types of losses, and around 80% of individuals, especially those with newer cars or car loans, possess comprehensive coverage,” Ruiz pointed out.

While the earthquake that transpired on Sunday didn’t lead to significant damage reports, there could be minor repercussions due to the tremors. Ruiz disclosed that about 13% of Californian homeowners hold earthquake insurance, despite the fact that most residents in the state live within 30 miles of an active fault line. “To safeguard your home against earthquakes from an insurance perspective, a distinct policy is necessary; it’s not included within the scope of your homeowners insurance,” she noted. “Yet, there are proactive measures to fortify your home, such as enhancing your foundation. The California Earthquake Authority offers an informative website called ‘Strengthen Your Home,’ providing guidance on this front. These modifications and foundation reinforcement aren’t exorbitant, and grant programs are available to support these enhancements,” Ruiz added.

Renters, too, have avenues to safeguard their belongings and well-being. Renter’s insurance can shield possessions and often includes coverage for additional living expenses during displacement. However, similar to homeowners, renters need separate insurance coverage for both floods and earthquakes.