Hurricane Followed by Earthquake Makes for Double Trouble in Hawaii
Insurance-related questions about Hurricane Flossie, a Category 2 storm that forecasters believe could hit Hawaii’s Big Island, or the 5.3 temblor that struck 25 miles south of Hilo, may be directed to the Insurance Information Institute (I.I.I.).
The last major hurricane to strike Hawaii was in 1992 when Hurricane Iniki, the 13th most costly hurricane in U.S. history, caused insured losses of nearly $2.3 billion (in 2006 dollars). For more information about hurricanes, including a chart listing the top 15 most costly hurricanes in U.S. insurance history, go to: http://www.iii.org/media/facts/statsbyissue/hurricanes/.
Hawaii is ranked third nationally when it comes to earthquake frequency, behind only Alaska and California. Hawaii averaged seven earthquakes a year between 1974 and 2003. More historical data on earthquakes can be found at http://www.iii.org/media/facts/statsbyissue/earthquakes/.
Standard homeowners and renters policies cover wind damage from a hurricane. Earthquake or landslide damage is not covered without supplemental policies, advises the I.I.I. Earthquake and flood damage to an automobile is included under the comprehensive portion of an auto insurance policy.
Commercial coverage for an earthquake is not included in the standard commercial property insurance policy. For an additional premium, business owners in low-risk areas may be able to add coverage. Those businesses in high-risk areas must purchase a separate commercial earthquake policy.
Source: Source: Insurance Information Institute | Published on August 15, 2007
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