Flood & Earthquake Coverage

Flood & Earthquake Coverage Provided by CIS Property Program

The events that have unfolded following the earthquake and tsunami in the Indian Ocean region have no doubt caused many CIS members to take a look at their own preparedness against such an event in the Pacific Northwest. As part of that process, we have received questions about coverages provided by the Trust for damage to covered property. Currently CIS automatically provides coverage for property included under the CIS Property Coverage Agreement, subject to a limit of $5 million for damage resulting from Floods and $5 million coverage for damage resulting from Earthquake. Members can request higher limits, up to a total of $10 million for Flood damage or $20 million for Earthquake, subject to underwriting restrictions. The combined maximum limit of coverage available for all members in the Trust's property program for damages arising from an occurrence is $50 million for Flood damage and $100 million for Earthquake damage. While the cause of the tsunami in Southeast Asia was earth movement on the ocean floor, insurers generally define damage caused by the resulting tsunami as flood damage. Building damage caused by earth movement and not by resulting wave action would be considered earthquake damage. Under the CIS coverage agreement, Earthquake coverage is subject to a deductible equal to 2% of the combined value of units damaged, with a $5,000 minimum and a $50,000 maximum. Flood damage is subject to the same deductible unless the property is located in zones identified by the National Flood Insurance Program (NFIP) as an A or V flood zone. Within these higher risk zones, the member's deductible increases to either equal the maximum coverage limit available through the NFIP or, if coverage is not available under NFIP, 5% with a $100,000 minimum, $500,000 maximum. You can find details about these coverage in the Property Coverage declarations and Coverage Agreement, sections 1B and 1C, Limits of Coverage; 2A, Deductibles; and 3C and 3D, Definitions. If you want to know more please contact either Bob Kahl at 800-922-2684 ext 3860, bkahl@cisoregon.org or Debby Hande at 800-922-2684 ext 3863, dhande@cisoregon.org.