Like Flood Insurance, Earthquake, Volcano and Mudslides are not included in the vast majority of insurance contracts written today. This coverage will be picked up via Endorsement (or for the old folks a “Rider”). For us in Michigan, this often overlooked coverage option is available from most commercial carriers. Earthquake coverage is also available from many personal insurance carriers, but this blog will focus on the commercial area. ISO Commercial Risk Services, which provides “coverage forms” for many of the approved Michigan carriers has a specific form which is CP 10 40 06.
Seismic Activity in Michigan is not necessarily up over the past couple of years, however we have “felt” neighboring states (Ohio, Illinois and Pennsylvania) increased activity. And, of course, many of you reading this likely know that one of these earthquakes come from the New Madrid Fault. One of the most powerful earthquakes in the history of the US emanated from the New Madrid fault in the Midwest. As recent as 1947 Michigan did experience a Magnitude 4.6 earthquake that caused widespread structural damage centered southeast of Kalamazoo and including the areas of Bronson, Coldwater, Colon, Matteson Lake. This earthquake as recorded by USGS (US Geological Survey) caused chimney damage, window and plaster damage as well as brick cornices coming down.