Earthquake Excluded & Other Stuff Is Too

Almost all property insurance policies exclude earthquake. Coverage is available almost everywhere in the US - either through standard or specialty insurers.What is not commonly discussed is that the earthquake exclusion is broader than just earthquakes.The following are excluded in the same breath:landslide, mudflow, sinkhole, mine subsidenceland … [Read more...]

Bedbugs and Property Insurance

For some reason bedbugs are in the news now.  Apparently there is an epidemic of infestations.  (Perhaps there is just an epidemic of reporting of infestations - who am I to say?)If your place is plagued by pests, how does insurance respond?Short answer?  It doesn't.The standard home insurance policy excludes loss caused by insects.  That means … [Read more...]

Earthquake Insurance

1) Earthquake is not covered by standard property insurance policies.2) Earthquake insurance is available in every county in the US (its just more expensive in some places).3) Earthquake is the single most uninsured catastrophic exposure for most businesses.4) I don't understand why all businesses do not buy earthquake insurance. … [Read more...]

Earthquake is Not Covered!

The horrible events in Haiti means that many of my conversations with clients include questions about earthquake.Here is the short answer... Standard property insurance policies exclude earthquake. Home insurance excludes it and business property insurance excludes it.The following exclusion is from a commonly used business property insurance … [Read more...]

Insurance History and Inchmaree

I first learned of the Inchmaree clause when I met Howard Candage.Howard is an expert in marine insurance and one of the best insurance people I know. Up to the time we met (2o something years ago), I knew next to nothing about marine insurance. Howard taught me a great deal.The Inchmaree clause extends coverage to include losses caused by unseen … [Read more...]

Lightning Damage

Lightning is one of the most frequent causes of homeowner insurance claims. 177,000 claims in 2007 278,000 in 2004 While the number of claims went down, the average cost per claim went from $2,646 to $5,321, according to the Insurance Information Institute. The increase in cost is attributed to an increase in sensitive electronics like flat … [Read more...]


I just realized that it has been some time since I talked about flood insurance. There are many new readers who may have missed past rants. Here goes...-Home insurance policies do not cover damage caused by a flood.-Business property insurance do not cover damage caused by a flood-The only way to find flood coverage (for most) is to get … [Read more...]

Spring Thaws and Flood Insurance

Maine's Insurance Commissioner recently reminded us that spring thaws are coming.With the 30 day waiting period for the purchase of flood insurance, the time to buy coverage is now.For the 4,345th time...Flood is not a covered peril on homeowners policies and most business property insurance policies. To be covered for flood you must buy a flood … [Read more...]

Earthquakes Not Covered

Missouri residents last week experienced a 5.2 magnitude earthquake that rattled windows and shook houses. Many are now trying to buy insurance but are finding that there's a waiting period for coverage. Several of the state's biggest earthquake insurers have imposed a 30-day moratorium on new policies - a not uncommon practice right after quake … [Read more...]

Exclusions in Property Insurance Policies

The rain continues in the northeast! The stories are all over the news about the low percentage of businesses and homeowners who have flood insurance. Here are the perils commonly excluded by property insurance:FloodEarthquake / LandslideNuclearDamage Caused By Insects & AnimalsPollutionRain Without Damage To The Building FirstSettlingMold, … [Read more...]