Earthquake Coverage – For Individual Unit Owners
There has been a lot of talk about when “the big one” will happen. Yes, we are talking earthquake. From a unit owners point, they should review their insurance coverage before and decide how to best protect themselves.
Even though the association may have specific earthquake coverage, each unit owner will have a responsibility if the building is damaged in an earthquake. Below are common coverages the individual unit owner can look into to protect themselves:
- Earthquake Loss Assessment: This provides coverage for each unit owner when the association assesses them their share of the master policies earthquake deductible. It’s also important to know how the association allocates that deductible to everyone, likely done on a percentage share.
- Earthquake coverage on Personal Property: Carrying an earthquake endorsement or individual policy would protect the contents within your condominium unit such as clothes and furniture against an earthquake loss. (subject to your own deductible)
- Earthquake “Loss of Use” Coverage: This section of the unit owners policy would pay out for additional living expenses incurred (hotel, restaurant, etc.) while your condominium unit is uninhabitable because of damage from an “insured peril”. Must make sure earthquake is included in that coverage.
- Earthquake Building Property Coverage: It is important to also consider having coverage for damage to structural elements of the individual unit which is not insured by the master policy. This could be due to the deductible or building components per the association documents.
Discussing coverage with your agent may be worth your while. Know your options and be prepared before the earthquake occurs.