How Does Vehicle Damage Insurance Cover Natural Disasters?
1 Answers
Natural Disasters and Auto Insurance: Three Covered, Three Not Covered. 1. Earthquake Not Covered, Tsunami Covered: In auto insurance policies, most insurance companies list earthquakes as an exclusion clause, while losses incurred due to tsunamis are eligible for claims. The risks associated with earthquakes are generally high, with unpredictable destructive power and affected areas. Once a claim arises, the scope and compensation amount may exceed the insurer's capacity. Vehicle damage caused by tsunamis is claimable, as both personal and commercial auto insurance policies explicitly list coverage for "vehicle damage caused by lightning, hailstorms, heavy rain, floods, and tsunamis." 2. Auto Insurance Doesn't Cover, Personal Insurance Does: Vehicles damaged by earthquakes are mostly excluded from auto insurance claims. However, if the policyholder has personal insurance (such as life or accident insurance), losses due to earthquakes may be covered. Personal insurance typically includes life and accident policies, covering death or disability caused by accidents, including those resulting from earthquakes. Therefore, earthquakes are often excluded from auto insurance because personal insurance can provide corresponding claims. 3. Home Property Insurance Doesn't Cover, Some Life Insurance Does: Compared to life insurance, property insurance products covering earthquake damage are rare. For home property insurance, some life insurance policies may cover personal injuries caused by earthquakes. Home property insurance strictly defines natural disasters, including heavy rain, storms, lightning, hailstorms, snow disasters, and sudden ground collapse, but few cover earthquake damage. Most property insurance policies for real estate exclude earthquakes, meaning vehicles crushed under collapsed buildings due to earthquakes are not eligible for claims, hence property insurance does not provide compensation.
