Do You Need Earthquake Insurance in the Northeast?

The Northeast isn’t known for major seismic activity; however, earthquake insurance in the Northeast is much more important than many people believe. Since 1990, over 1,100 earthquakes have struck New York, 440 in New Jersey, and numerous others across neighboring states. Perhaps the strongest hit New Jersey had just last year (2024) on April 5th, with a 4.8 magnitude.  

Despite relevant data, homeowners and business owners in this region remain uninsured for earthquake-related losses. This is because a standard property insurance policy typically does not cover earthquake damage, and additional coverage must be added through an endorsement.  

If you’re located in New Jersey, Pennsylvania, or New York, earthquake insurance in the Northeast is more relevant than you think. Even small quakes can cause significant damage.

To check current activity in your area, the USGS Earthquake Hazard Map is a great tool. 

What Earthquake Insurance Covers 

• Structural damage to your home or business 
• Additional living expenses if you are temporarily displaced 
• Fair rental value for landlords 
• Loss assessment coverage, which is especially useful for condo or co-op owners 

What You Need to Know 

• Deductibles are usually a percentage of the coverage limit, ranging from 5% to 25% with a minimum of $500.  
• All earthquakes within a 72-hour window (or 168 hours for commercial policies) are considered a single event; therefore, you only pay one deductible.  
• Wood frame buildings typically cost less to insure as compared to brick or masonry structures, which are more vulnerable to seismic stress.  
• Exterior masonry veneer damage is usually excluded from the policy, unless specifically added by an endorsement. 
• Ordinance or law coverage (required code upgrades after damage) may or may not be included, depending on the policy. 

Should You Consider It? 

As discussed earlier, individuals located in the Northeast are not immune to seismic risk. Minor earthquakes can cause heavy damage, and without proper coverage in place, you are likely to face high out-of-pocket costs.  

At Professional Liability Insurance Group & Bevilacqua Insurance Group, we assist our clients in uncovering the hidden gaps in their policies and truly understand which endorsements are worth it, especially for those in high-risk zones. 

Contact us to get started!