Earth quake insurance only coveres damage caused by an actual event. And ony after the earth quake occurrs. The "deductable" is very high.

Most states, earth quake insurance is not a part of a standard policy, but is available at an extra cost.

If there was recovery for the house foundation issue/problem, then it would have been covered under the standard policy.

Gosh, it's trouble enough when RE agents think of themselves as a know it all with inspections, now they are insurance experts??!!

It never ceases to amaze me that these LICENSED RE "professionals", continue to put out information to the homeowners that they have no clue about.

Makes it difficult to dispell incorrect information.

So, you are correct, earth quake only covers earth quake, period!!!

Honest Realtor, is there such a thing?????

Quote:

Originally Posted by Scott Patterson

At an inspection yesterday, I overheard a fairly experienced and what I have perceived a very honest Realtor telling his client that he discovered that Earthquake insurance covers a home that has been damaged by the ground shrinking around it during a drought.

Quote:

Originally Posted by Scott Patterson

He went on to say that it happened to his own home this past summer. His home settled by 3" on one side when the ground shrunk under and around the foundation. He then went on to say that the insurance paid to repair the foundation.

Has anyone ever heard about this? I would think that Earthquake insurance would only cover a seismic event and not soil shrinkage from a drought.