With the Kilauea Volcano causing damage to property in Hawaii this week, many in the Northwest, an area home to several volcanoes, are concerned about what their insurance policies might cover, or not cover, in the event of an eruption.
The Insurance Information Institute recently issued a statement detailing what is generally covered and not covered under standard homeowners, renters, business owners, and comprehensive auto insurance policies with regard to volcano damage.
What’s usually covered under standard policies:
-Property loss caused by the volcanic blast, airborne shockwaves, ash, dust, lava flow, and fire resulting from a volcanic eruption
-Property damage, vandalism, or theft due to looting if occupants of a structure are displaced
-Direct, sudden damage to vehicle engines from volcanic ash or dust
-Damage to vehicles caused by lava flow is usually only covered under optional, comprehensive coverage policies
-Business interruption coverage, if included and applicable, usually kicks in after 72 hours
What’s not usually covered (unless you have specialized insurance):
-Damage from earthquakes, land tremors, landslides, and mudflows whether or not the earth movement is caused by a volcanic eruption
-Damage to land, trees, plants, lawns, or property out in the open
-The cost to remove ash from property or surrounding land, unless the ash caused the direct loss of physical property
-Volcanic effusion, or damage due to mud or flooding
To read the Insurance Information Institute’s full primer on volcanoes and insurance, go here.