A Washington, Oregon, & California Tsunami Story – Now Where is the Coverage?

A great article found on DNYUZ highlights this risk of Tsunami to Washington State

Tsunamis are not covered by Earthquake Insurance, but are they covered by Flood Insurance?

The Media Story about Ocean Shores Washington State:

An exellent article found in DNYUZ.com titled “The Tsunami Could Kill Thousands. Can They Build an Escape? was published Feb 7th 2022. The article can be found here. The article highlights the need for discussion concerning Tsunamis and their Earthquake creators. This potential tsunami would most likely be created by “Cascadia fault” which is off the pacific northwest coast in the Pacific Ocean. The article states in no uncertain terms: It “is poised for a massive, 9.0-magnitude earthquake at some point, scientists say…” And the danger is signficant: “neighborhoods in Washington, Oregon and Northern California would be under 10 feet or more of water”

This could create horrible loss of life, first and foremost. Additionally the destruction to buildings and such could be signficant, in QuakeCov’s opinion. So, the question as far as we are concerned is: Where is the Coverage?

Damage from Tsunami or Earthquake?

First if you have an earthquake policy and the earthquake meets the definition of the policy [and all of the other terms and conditions]- than likely there is an element of coverage for your structure. That is for damage from an earthquake.

However what happens if your property is damaged by a Tsunami wave? Would you have coverage from Flood Insurance or would you have Coverage from your Earthquake Insurance policy.

Read about other consumer earthquake insurance exclusions.

The Real Question about Tsunamis and Earthquake Coverage:

The California CEA policy {BEQ-3B 2019 Edition] states in no uncertain terms the following on Page 17, “Losses Excluded: Both Point 2: “Water damage, including but not limited to damage resulting from: a. Flood, precipitation (including but not limited to rain, snow, hail, or sleet), or surface water; waves, tsunami, or tidal water; rupture of a dam, levee, berm, or sea wall; overflow of a natural or man-made body of water; or spray from any of these; or…”

And Point 12: “Earthquake does not mean or include tsunami or volcanic eruption.”

Let us repeat that according to the California Earthquake Authority policy an Earthquake does not include a tsunami.

Between points 2 and 12 – its seem rather clear that water damage from a Tsunami is not covered. Therefore there is no coverage on the CEA policy from the Tsunami water damage.

Is there coverage on the NFIP Flood Insurance Policy for a Tsunami? Good Question.

Taken directly from the NFIP floodsmart site: Under Dwelling Policy form: “Issued to homeowners, renters, and condominium unit-owners.” In this policy on page 13 of 30, it clearly says: “We do not insure for loss to property caused directly by earth movement even if the earth movement is caused by flood. Some examples of earth movement that we do not cover are: 1. Earthquake;….”

Based on this articles concept that a rupture in the Cascadia Fault would result in a Tsunami, its hard to see where an NFIP Flood Insurance policy would respond in the United States. Is there flood coverage for a Tsunami?

Please understand that the CEA and NFIP are the two largest issuers of these types of policies, Earthquake and Flood, in the United States. The CEA issues the majority of policies in California and the NFIP for the entire country. There are of course other policy options for both Flood and Earthquake. But do those policies clearly cover you for a Tsunami?

Worse still the word “Tsunami” is not even found in the NFIP policy that we have searched. At least the CEA mentions the term.

What if the coverage is considered to be caused indirectly from the earth movement? This is a great question and what would be considered indirect? Regardless its hard to feel like one “might” or “could” have property insurance coverage in this situation based on whatever defition of direct they use.

Please note that there are other publications out there -that seem to indicate that there may indeed be coverage for the peril of Tsunami on the NFIP flood insurance policy. Its unclear how they come to that conclusion given the exclusion found on the NFIP policy.

Where Consumers Can Get Property Coverage from a Tsunami?

QuakeCov as of the publication of this short article does not have an answer for you here. Its clearly not on earthquake insurance policies, and for the record thats no reason not to buy one. It is also not on the flood insurance policy, as best as we can tell.

Thanks for reading our short article on Tsunami Coverage with regards to the NFIP Flood insurance policy and CEA earthquake policies – always speak wtih a licensed agent in your jursidiction before making changes or additions on any policy.

A Last Note on a Tsunami Story:

Tsunamis can hit all sorts of areas in the United States, not just California, Oregon, Washington, and Alaska. They can also hit other coastal states and territories including Hawaii, Puerto Rico, and most of the US East Coast. Be aware and be safe

Update on this Tsunami Earthquake Story:

A new CNN story, Titled Simulation shows tsunami waves as high as 42 feet could hit Seattle in minutes should a major earthquake occur on the Seattle Fault, tells a very scarey version of this potential threat. This story states that “Tsunami waves could be as high as 42 feet … [and]… reach inland as far as Lumen Field and T-Mobile Park.” 42 feet is very very high. The article also states that: the “last known earthquake on the Seattle Fault happened about 1,100 years ago.”

This very short CNN article seems to confirm earlier reporting. The story was written based on a simulation done by Washington State Department of Natural Resources. Thanks to CNN for reporting on this important topic.

2024 New Update:

Another CNN article This Part of the US is at Highest Risk for a Devastating Tsunami review the subject yet again, “A catastrophic earthquake and tsunami are inevitable for the coast of the Pacific Northwest, scientists say. Planning for that means imagining a disaster unlike anything that’s ever hit the modern United States.” They admit that “30 or 40 years ago, we didn’t even know that big earthquakes were possible in the Pacific Northwest,” But now? “Scientists now know the 700-mile fault called the Cascadia Subduction Zone, 100 miles off the coast of Northern California stretching north to Vancouver Island, could trigger a 9.0 magnitude earthquake followed by a tsunami, which is exactly what happened in Japan 2011.”