How do insurance companies define “earthquake”?
Each company has its own definition of earthquake. You can find out how a company defines what an earthquake is by reviewing the policy language under the ‘Definition’ portion of any insurance contract. Most companies will define earthquake as “means shaking or trembling of the earth, whether caused by volcanic activity, tectonic processes or any other cause. One or more earthquake shocks that occur within a seventy-two hour period shall constitute a single earthquake.” – This definition was taken from a Safeco Earthquake Insurance Policy. An “occurrence” means loss to covered property due to earthquake shocks that occur within a continuous 72 hour period. This would include land shock waves or tremors before, during, or after a volcanic eruption as well. After this 72 hour period another seismic event would constitute the use of another earthquake deductible.
