Does NJ insurance cover earthquake damage to homes?

By: Daniel Munoz
Northernmost
USA Today Network - New Jersey

..... Earthquake coverage in New Jersey?
...>>>>>>>..After a 4.8 magnitude earthquake struck Friday [04/05/2024] in Hunterdon County, insurance brokers reported a spike in inquires about whether homes are covered for earthquake damage.
..... "We have received a few phone calls. People were asking, 'If something were to happen, are we covered?'" said Stella Lemberg, an operations agent with ABA Insurance Agency in Fair Lawn.
..... According to NerdWallet, certain natural disasters such as earthquakes, floods, landslides and sinkholes are not covered under a standard home insurance policy.
..... Flood and earthquake insurance are separate policies available for purchase, NerdWallet said.
..... Standard renters insurance also does not include damage from earthquakes, the Insurance Information Institute said.
..... "It's always good to check with your agent to see if you're in an area that requires' coverage, said James Correa, vice president of marketing at Mountain Valley Insurance Agency in Paramus. "There;s no harm or cost to looking into that coverage."
..... Like Lemberg, Correa said calls have been coming in from concerned customers about whether such extra coverage is necessary.
..... "IF they've very adamant about it, they're very concerned about it, they give a genuine request, then we do look into it," Correa said.
..... And Anas Asmar, a producer with State Farm in Ridgewood, said the office has also seen an uptick in people asking about earthquake insurance, if at least in passing or as part of another conversation.
..... "They'll probably run it by," he said.

Should you get quake coverage?

..... Luckily, Lemberg said, earthquakes coverage in New Jersey is much cheaper than in California, where damage from earthquakes and other ground movement is more common and severe.
..... "In New Jersey, while the risk and subsequent insurance costs are generally lower than in more seismically active regions, the value of adding earthquake insurance cannot be overstated," she said. "It provides essential protection and peace of mind."
..... The Federal Emergency Management Agency said North and Central New Jersey and parts of South Jersey could experience "moderate intensity" earthquakes, which will be "felt by all."
..... "some heavy furniture moved' a few instances of fallen plaster,. Damage slight," FEMA said of the quake magnitude the state can experience, such as the one occurred Friday. [04/05/2024]
..... If you do get earthquake insurance, keep in mind that deductibles are higher than in the standard plan, the Insurance Information Institute said, and could be equal to roughly 5% to 15% of the policy limit.
..... But also keep in mind that insurance companies are starting to put freezes on what types of new earthquake-related insurance policies they'll accept.
..... Franklin Mutual Insurance, for example, sent out a bulletin saying it was pausing any new or addition a earthquake coverage policies.
..... "This happens when three are hurricanes, for example," Lemberg said. "Right before a hurricane, companies might put a freeze for new policies for flood insurance to avoid a sudden spike in claims."

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