The Earthquake Deductible Shock

Even if you have earthquake insurance, the deductible will shock you. Standard homeowner deductibles are $500 to $2,000. Earthquake deductibles are typically 10-20% of your dwelling coverage.

On a $300,000 home with a 15% earthquake deductible, you pay $45,000 before insurance pays anything. On a $500,000 home, that's $75,000 out of pocket.

This deductible is so high that many earthquake claims never reach it. Insurance companies know this. They design these deductibles to reduce payouts.

For damage that exceeds the deductible, every dollar matters. Insurance companies minimize claims to keep payouts low. The difference between their assessment and reality can be hundreds of thousands of dollars.

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You Probably Don't Have Earthquake Coverage

An earthquake just shook your building. Cracks appeared in walls. Your chimney collapsed. Foundation damage is visible. You call your insurance company.

They tell you earthquake damage isn't covered. Your comprehensive homeowner policy excludes earthquakes. You never bought separate earthquake insurance. You didn't even know you needed it.

Now you're facing tens of thousands or hundreds of thousands in repair costs. Out of pocket.

This happens to property owners across the Northeast every time an earthquake hits. Most people don't realize standard policies exclude earthquake damage until it's too late.

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What To Do Immediately After An Earthquake

Step 1: Ensure everyone is safe. Check for gas leaks, electrical hazards, and structural instability before entering buildings.

Step 2: Call Northeast Claims Adjusters at 718-550-5312 before calling your insurance company if you have earthquake coverage. We'll guide you through notification.

Step 3: Document all visible damage with photos and videos. Photograph cracks, shifts, fallen objects, and broken items.

Step 4: Do not make permanent repairs without documentation. Temporary safety measures are fine. Complete reconstruction must wait.

Step 5: Save damaged items. Insurance companies require proof of loss. Disposed items can't be documented.

Step 6: Monitor for developing damage. Some earthquake damage appears days or weeks after the event as settling continues.

The Northeast Earthquake Risk Nobody Talks About

A magnitude 4.8 earthquake struck New Jersey in April 2024. It was felt across New York City, Long Island, Connecticut, and Pennsylvania. Buildings shook. People evacuated. Damage occurred.

Most Northeast residents had no earthquake insurance. They didn't think they needed it. Earthquakes happen in California, not New York.

The Northeast has active fault lines. The Ramapo Fault System runs through New Jersey, New York, and Pennsylvania. Historic earthquakes have struck the region for centuries.

East Coast earthquakes affect larger geographic areas than West Coast earthquakes. Different geology transmits seismic waves farther. A moderate earthquake centered in New Jersey can damage buildings hundreds of miles away.

Most Northeast buildings were constructed without seismic standards. Older buildings with unreinforced masonry, weak connections, and brittle materials are particularly vulnerable.

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Hidden Earthquake Damage Insurance Companies Miss

Visible earthquake damage is obvious. Cracks in walls. Collapsed chimneys. Broken windows. Insurance adjusters document these easily.

Hidden damage is where insurance companies save money. They don't investigate. They don't use specialized equipment. They don't bring structural engineers.

Hidden damage includes foundation cracks concealed by landscaping or finishes. Structural damage inside walls not visible from interior or exterior. Shifted framing members that compromise structural integrity. Broken connections between building elements. Utility damage that hasn't yet manifested as leaks or failures.

We bring structural engineers who use specialized equipment. Crack monitors measure ongoing movement. Laser levels detect subtle shifts. Borescopes inspect inside walls without demolition. Ground-penetrating radar identifies subsurface damage.

This hidden damage often exceeds visible damage costs. Insurance companies don't document it because they don't look for it.

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Common Earthquake Claim Denials

Pre-Existing Damage Denial: Insurance companies claim damage existed before the earthquake. Every old crack becomes evidence. They deny new damage by calling it old.

Cosmetic Damage Denial: They classify all cracks as cosmetic, not structural. They claim repairs are not covered because damage isn't structural.

Maintenance Denial: They argue damage resulted from lack of maintenance, not the earthquake. Poor maintenance becomes a reason to deny claims.

Below Deductible Denial: They claim damage doesn't exceed your deductible. They manipulate estimates to push you below the threshold.

Excluded Damage Denial: They claim damage falls under policy exclusions. Code upgrades, landscaping damage, indirect losses all become excluded items.

We fight these denials with engineering evidence and policy interpretation. Many are improper and can be overturned.

If You Don't Have Earthquake Insurance

If you don't have earthquake insurance, standard homeowner coverage may still apply to some damage. Fire caused by broken gas lines is covered. Water damage from broken pipes is covered. Contents damaged by these secondary causes may be covered.

But structural earthquake damage isn't covered. Foundation damage isn't covered. Walls cracked by seismic forces aren't covered.

We review your entire insurance program to identify any applicable coverages. We maximize recovery from whatever policies you have.

Going forward, consider purchasing earthquake insurance. Premiums vary by location and building type. The coverage may prevent financial devastation.

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Commercial Earthquake Claims Are Even More Complex

Commercial properties face unique earthquake damage issues. Larger buildings suffer more extensive damage. Multi-story structures have cumulative effects at each level.

Business interruption losses can exceed structural damage costs. Lost revenue during closure, extra expenses to operate temporarily, employee wages while shut down.

Inventory damage, equipment destruction, tenant improvements all require separate documentation. Each category has different coverage provisions.

We work with forensic accountants to document commercial losses. We prove actual business interruption amounts, not insurance company projections.