Insuring Your Home Against an Earthquake in New York
You can’t predict an earthquake, and many New York homeowners are surprised to learn their standard policy typically won’t pay for earthquake damage. Here’s how earthquake coverage works, how its deductible differs from what you may be used to, and how to explore adding protection.
Is Earthquake Damage a Real Risk in New York?
When people think of earthquakes, they often picture the western United States. It’s true that states like California experience earthquakes far more frequently, which is why earthquake coverage is more common there. New York, by contrast, experiences earthquakes less often, and large, damaging events are infrequent.
That said, the risk is real rather than nonexistent. New York does experience earthquakes, and because they are less familiar to many homeowners here, the question of whether to carry coverage is one worth understanding before a decision is made — not after an event occurs.
If you want to review hazard information for your area, the U.S. Geological Survey Earthquake Hazards program publishes earthquake hazard data and educational resources.
Why Your Standard Homeowners Policy Usually Won’t Cover It
A standard homeowners policy is designed to respond to common perils such as fire, wind, and theft. Damage caused by earth movement — which typically includes earthquakes, along with related events like landslides and sinkholes — is generally listed among the policy’s exclusions.
This is one of the most common surprises homeowners face after a loss. Because the exclusion is built into most standard policies, earthquake protection is usually added separately. There are two typical paths:
- An endorsement: Coverage may be added onto your existing homeowners policy as an endorsement (sometimes called a rider), restoring protection for earthquake-related damage, subject to policy terms.
- A separate policy: Depending on the carrier, a stand-alone earthquake policy may be available to cover your home and contents.
Whether earthquake coverage is offered by endorsement, by separate policy, or both depends on the carrier and your individual circumstances. Availability and terms vary.
Understanding the Percentage Deductible
Earthquake coverage often works differently from the deductibles you may be used to. Many homeowners policies use a flat dollar deductible — a set amount you pay before coverage applies. Earthquake coverage, on the other hand, commonly uses a percentage deductible.
With a percentage deductible, your out-of-pocket amount is calculated as a percentage of your dwelling coverage limit rather than as a fixed figure. Because the deductible is tied to the insured value of your home, the amount you would be responsible for can be more substantial than a typical flat deductible.
The specific percentage that applies, and exactly how it is calculated, are subject to the terms of your policy. We can help you understand how a percentage deductible would apply to your home so there are no surprises later.
What Earthquake Coverage May Include
Coverage details vary by carrier and policy, but earthquake protection may help address losses such as:
- Damage to the dwelling: Repairs to the structure of your home resulting from earth movement, subject to policy terms.
- Damage to contents: Personal belongings inside the home that are damaged by a covered earthquake event, subject to limits and exclusions.
- Additional living expenses: Some policies may help with added costs if your home becomes uninhabitable while repairs are made. Availability varies by policy.
As with any coverage, what is included, the applicable limits, and the exclusions are defined by the policy as issued. Reviewing the specifics with a licensed insurance professional can help you understand what a given option would and would not address.
Exploring Your Options
Because earthquake coverage sits alongside your homeowners policy, it can help to look at both together. We can present available options from our carriers and help you understand how the pieces fit with the rest of your home coverage.
Learn more about earthquake insurance or review the broader picture with our homeowners insurance information.
Frequently Asked Questions
Does a standard homeowners policy cover earthquake damage in New York?
Typically, no. Most standard homeowners policies exclude damage caused by earth movement, including earthquakes. Earthquake protection is usually added by endorsement to your existing policy or purchased as a separate policy. Coverage availability and terms vary by carrier, so it is best to review your specific policy with a licensed insurance professional.
Are earthquakes really a risk in New York?
New York does experience earthquakes, though large, damaging events are infrequent and the overall hazard is generally lower than in much of the western United States. Because the risk is real but less familiar to many homeowners, earthquake coverage is something property owners may want to understand before deciding whether it fits their situation. The U.S. Geological Survey publishes earthquake hazard information you can review.
How does an earthquake deductible work?
Earthquake coverage commonly uses a percentage deductible rather than a flat dollar amount. That means your deductible is calculated as a percentage of your dwelling coverage limit instead of a set figure. Because the deductible is tied to your dwelling limit, the out-of-pocket amount can be meaningful, so it is worth discussing how it would apply to your home. The exact percentage and how it is applied are subject to the terms of your policy.
What might earthquake coverage help pay for?
Depending on the policy, earthquake coverage may help pay for damage to your dwelling and personal contents caused by earth movement, subject to the policy terms, conditions, and exclusions. Some policies may also address additional living expenses if your home becomes uninhabitable. Specific coverages, limits, and exclusions vary by carrier and policy.
How do I add earthquake coverage to my homeowners policy?
You can add earthquake protection by endorsement to many homeowners policies, or you may purchase a separate earthquake policy, depending on what your carrier offers. We can help you explore the options available through our carriers. Call 585-657-6101 or schedule a consultation to review whether earthquake coverage fits your needs.
Find Out What Earthquake Coverage Could Look Like
Since earthquake protection isn’t built into a standard homeowners policy, the only way to know your options is to ask. We can help you explore whether adding earthquake coverage — by endorsement or as a separate policy — fits your needs.
Important Information
This information is provided for general educational purposes only and does not constitute insurance advice or policy recommendations. Coverage features described are examples and may not be available in all policies or from all carriers. Actual coverage is subject to the terms, conditions, and exclusions of the policy as issued. Please consult with a licensed insurance professional to discuss your specific coverage needs and options. Stan Steele Agency is licensed in New York State.