Who covers your Home from a Fire started by an Earthquake?

In the great state of California – A fire started by an Earthquake is covered by a personal homeowners insurance policy. You do NOT need to have earthquake insurance to be covered from the peril of fire caused by an Earthquake. However you DO need Earthquake Insurance to be protected from other damage (such as shaking) caused by the peril of Earthquake.

• In California Fire Caused by Earthquake is Covered by Home Insurance.
• Earthquake Insurance is needed for the damage from physical shaking of the structure.

Evidence that Fires Caused from Earthquakes are Covered by Typical Home Insurance:

(1) According to the California Department of Insurance – ” your homeowners policy covers fire damage, even if an earthquake causes the fire. ” Source.

(2) This statement is adequately backed up by Justia US Law: “10088.5.Notwithstanding Section 2081, nothing in Section 10088 exempts an insurer from its obligation under a fire insurance policy to cover the losses of a fire which is caused by or follows an earthquake.”

This section 10088, which is referenced, refers to: “covering the peril of earthquake, no policy which by its terms does not cover the peril of earthquake shall provide or shall be held to provide coverage for any loss or damage when earthquake is a proximate cause regardless of whether the loss or damage also directly or indirectly results from, or is contributed to, concurrently or in any sequence by any other proximate or remote cause, whether or not covered by the policy.” This Code is Listed as the “2010 California Code Insurance Code Chapter 8.5 Earthquake Insurance.“

What all of this means is that home insurers do not need (and they do not) cover you from earthquake structural damage, except if the earthquake starts a fire that burns down your house. At least in California.

(3) The San Francisco Chronicle/ SF Gate backs up this claim from July 17th, 2012: In response to a consumer question about who pays for a fire started by earthquakes: ” In California, your homeowners policy would cover fire caused by an earthquake, your quake insurance would not. “

(4) Insurance Business Magazine states: ” Earthquake insurance, in its standalone form, covers property losses resulting from a sudden trembling or shaking of the earth, including incidents caused by volcanic eruption. The coverage does not stretch to losses resulting from fire, explosion, flood or tidal wave following the covered seismic event. Rather, coverage for those resulting damages would be covered under most standard homeowners’ or business insurance policies. “

So Who Pays for an Earthquake ignited Fire in California?

A fire started from an Earthquake, according to California Insurance Code regulation would be paid from a typical homeowners insurance policy. These could be HO3 or HO5 policies. It is unclear to me if this applies to commercial and commercial policy forms.

As with all questions regarding all coverages on your home insurance policies, it is usually best to reach out to your insurance company and or insurance agent. Inquire with them.

If your Home Insurance Pays for an Earthquake Started Fire, Why Get Earthquake Insurance?

Just because consumers are covered from the peril of fire does not at all mean they are covered from earthquakes. The peril of earthquake can do lots of physical damage to any structure in and around its’s proximity. The typical homeowners policies excludes physical damage from all land movement, including earthquakes. The shaking can quickly destroy just about any structure.

Most homeowners are exceptionally exposed to this known problem.

Who Pays for an Earthquake Ignited Fire in Other States?

You would have to address those questions to your individual state department of insurance.

How Can I Protect My Home from a Fire caused by an Earthquake?

Preventing all fires might be difficult. However a simple solution that is bound to help is to shut off your gas valve to your house after a quake or if you smell natural gas at any time.

Some houses have automatic shutoff valves. I have also heard the term earthquake shutoff valve used as well. An automatic gas shutoff valve is protection device that can assist with this. An automatic gas shutoff valve is about the size of a softball and is typically red. It is located by your natural gas inline from your gas provider.

In addition, encourage other community members to install automatic gas shut off valves or have earthquake wrenches near their on/off switch. The reason for this is quite simple. A fire could easily be ignited by an earthquake at your neighbors home and then subsequently spread to your house.

If my house is both physically damaged from earthquake and then burns down, what happens?

This is a great question. Unfortunately its beyond the scope of this article due to the specific details and legal complexity involved.

A Side Note that this Site Makes Often: Earthquake Insurance does NOT protect you from all land movement exclusions in a home insurance policy. Earthquake insurance protects you from earthquakes only.