Does Homeowners Insurance Cover Earthquake Damage in New Jersey?
- Bergen Insurance Group
- Apr 1, 2021
- 3 min read
Updated: May 26
Bergen Insurance Group | Home Insurance Education
Many homeowners are surprised to learn that: standard homeowners insurance policies typically do not cover earthquake damage.
While earthquakes are less common in New Jersey compared to some other parts of the country, earthquake activity can still occur throughout the Northeast. Because of this, some homeowners may wonder whether earthquake insurance is available and what types of damage may or may not be covered.
At Bergen Insurance Group, we help New Jersey homeowners better understand how earthquake insurance works, what standard homeowners insurance policies may exclude, and when earthquake coverage may be worth discussing with an insurance advisor.
Why Earthquake Damage Is Typically Excluded
Most standard homeowners insurance policies are designed to cover risks such as:
fire
wind damage
theft
certain water damage
liability claims
However, earth movement-related events are commonly excluded under many homeowners insurance policies.
This may include damage involving:
earthquakes
ground movement
tremors
aftershocks
shifting soil caused by seismic activity
Because of these exclusions, earthquake-related losses may sometimes require: separate earthquake insurance coverage or an earthquake endorsement.
What Earthquake Insurance May Cover
Depending on the policy structure, earthquake coverage may help cover damage involving:
the dwelling structure
attached structures
detached garages
personal belongings
foundation damage
cracked walls
collapsed chimneys
additional living expenses after major damage
Coverage availability, deductibles, and policy limits vary depending on:
the insurance company
property type
policy structure
location
deductible selections
Real-World Claim Examples
Example 1: Foundation & Structural Damage
A moderate earthquake causes shifting soil beneath a home, leading to:
foundation cracking
wall separation
chimney damage
structural instability
Because the damage resulted from earth movement, standard homeowners insurance may typically exclude the loss unless earthquake coverage is in place.
Example 2: Interior Property Damage
Tremors cause shelving, televisions, and appliances to fall and damage portions of the interior living space.
Depending on the policy structure, earthquake coverage may potentially help cover portions of the damaged personal property.
Example 3: Home Becomes Temporarily Uninhabitable
After a significant seismic event, structural concerns force a family to temporarily leave the home while repairs are completed.
Depending on the policy wording and coverage structure, earthquake insurance may potentially help with certain additional living expenses after a covered loss.
Are Earthquakes Common in New Jersey?
Historically, major earthquakes in New Jersey are relatively uncommon compared to states along major seismic fault lines.
However:
smaller earthquakes
tremors
seismic activity
have occurred throughout the Northeast region over time.
Even though earthquake risk is generally considered lower in New Jersey, some homeowners still review earthquake coverage depending on:
personal comfort level
property characteristics
location
foundation concerns
financial risk tolerance
Important Earthquake Insurance Considerations
Earthquake insurance policies may involve:
percentage deductibles
separate coverage limits
exclusions
waiting periods
foundation limitations
masonry restrictions
Because earthquake coverage can be highly policy-specific, homeowners should carefully review:
deductible structure
dwelling coverage
personal property limits
loss-of-use coverage
exclusions
with their insurance advisor.
Why Independent Insurance Advice Matters
Different insurance companies may:
offer different earthquake endorsements
structure deductibles differently
apply different underwriting guidelines
limit certain property types
handle foundation coverage differently
Independent insurance agencies can help homeowners:
review earthquake exposure
understand policy exclusions
compare earthquake coverage options
evaluate potential coverage gaps
At Bergen Insurance Group, we help New Jersey homeowners better understand their homeowners insurance and optional earthquake coverage before unexpected losses happen.
FAQs
Does homeowners insurance cover earthquake damage?
Typically no. Standard homeowners insurance policies generally exclude earthquake and earth movement-related damage.
Is earthquake insurance available in New Jersey?
Possibly. Some insurance companies may offer earthquake coverage through separate policies or endorsements for an additional premium.
What types of earthquake damage may be covered?
Depending on the policy structure, earthquake insurance may potentially help cover:
structural damage
foundation damage
personal property damage
additional living expenses
after covered losses.
Are earthquakes common in New Jersey?
Major earthquakes are relatively uncommon in New Jersey, although smaller tremors and seismic activity have occurred throughout the region historically.
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Disclaimer
The information provided in this article is intended for general informational purposes only and should not be interpreted as insurance, engineering, legal, or financial advice. Coverage availability, exclusions, deductibles, earthquake endorsements, and policy structures vary by insurance company and individual situation. Please contact Bergen Insurance Group to review your specific homeowners insurance and earthquake coverage options
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