Oregon Earthquake Insurance

Since many homeowners’ biggest investment is their home, earthquake insurance is one way to help protect your investment. In order to quality for earthquake insurance most insurance companies will require that your home be seismically retrofitted to the foundation.

Earthquake insurance will cover the following:

  1. Rebuilding your home and other structures
  2. Replacing your personal property
  3. Providing additional living expenses

Earthquake is normally defined in an insurance policy as “shaking or trembling of the earth, caused by volcanic activity, tectonic processes, or any other cause.” Most policies state that any shocks that occur within a 72 hour period constitute a single earthquake.

Earthquake Deductibles

An earthquake deductible is your financial responsibility for repairs before the insurance policy kicks in. Your earthquake insurance deductible is based on a stated percentage of your home’s insurance replacement cost, that can range from 10%, 15%, 20% or 25%. This contrasts to a standard home insurance policy which has a dollar amount such as $500 or $1,000 for claims such as fire or theft.

An example of how an earthquake deductible works is if your home is insured for $200,000 and your earthquake insurance policy has a 10% deductible, you would have to pay the first $20,000 in repair or replacement costs before the insurance company will pay for the remainder of the repairs that are necessary.

How Much Does Earthquake Insurance Cost?

Earthquake insurance rates are based on several factors, including location of your home, year of construction, construction and foundation type, and the number of stories.

Not all insurance companies offer earthquake insurance. Those that do offer this insurance might have restrictions and eligibility requirements. Our partner, Portland Insurance Broker Mark Strauss, has been underwriting earthquake insurance coverage for more than 10 years. Please contact Mark for inquiries regarding your need for earthquake insurance and additional earthquake questions that you might have.