{"id":26736,"date":"2023-06-11T06:21:12","date_gmt":"2023-06-11T06:21:12","guid":{"rendered":"https:\/\/insuropedia.in?p=26736"},"modified":"2026-04-14T08:55:59","modified_gmt":"2026-04-14T08:55:59","slug":"how-earthquake-extension-clause-impacts-the-premium-of-fire-insurance","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/how-earthquake-extension-clause-impacts-the-premium-of-fire-insurance\/","title":{"rendered":"How Earthquake extension clause impacts the premium of fire insurance?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/securenow.in\/property-insurance\/fire-insurance\"><span style=\"font-weight: 400;\">fire insurance policy<\/span><\/a><span style=\"font-weight: 400;\"> provides coverage against any property loss or damage in the event of a fire. Policy documents specify perils like fire, lightning, aircraft damage, storm, typhoon, and hurricane, offering insured protection. <\/span>This article will explore the addition of an earthquake extension clause to a fire insurance policy.<\/p>\n<h2 data-path-to-node=\"5\">Key Takeaways<\/h2>\n<ul data-path-to-node=\"6\">\n<li>\n<p data-path-to-node=\"6,0,0\"><b data-path-to-node=\"6,0,0\" data-index-in-node=\"0\">The Coverage Gap:<\/b> Standard fire insurance policies <b data-path-to-node=\"6,0,0\" data-index-in-node=\"51\">do not<\/b> cover earthquake damage by default. Proactive risk management requires the manual addition of an earthquake extension clause.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,1,0\"><b data-path-to-node=\"6,1,0\" data-index-in-node=\"0\">Dual-Scenario Protection:<\/b> The extension covers two distinct threats: <b data-path-to-node=\"6,1,0\" data-index-in-node=\"69\">Earthquake Fire<\/b> (fire caused by the quake) and <b data-path-to-node=\"6,1,0\" data-index-in-node=\"116\">Earthquake Shock<\/b> (direct physical damage from the shaking).<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,2,0\"><b data-path-to-node=\"6,2,0\" data-index-in-node=\"0\">The &#8220;Onus of Proof&#8221;:<\/b> The responsibility lies with the insured to provide evidence that the damage was a direct result of an earthquake or its immediate after-effects.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,3,0\"><b data-path-to-node=\"6,3,0\" data-index-in-node=\"0\">Compulsory Excess:<\/b> Claims under this extension are subject to an <b data-path-to-node=\"6,3,0\" data-index-in-node=\"65\">Excess Clause<\/b> (usually 5% of the claim value). This means the policyholder shares a small portion of the risk to encourage prudent property maintenance.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,4,0\"><b data-path-to-node=\"6,4,0\" data-index-in-node=\"0\">Sum Insured Alignment:<\/b> The value insured for the earthquake extension must be <b data-path-to-node=\"6,4,0\" data-index-in-node=\"78\">identical<\/b> to the main fire policy\u2019s sum insured, ensuring the entire property is uniformly protected.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,5,0\"><b data-path-to-node=\"6,5,0\" data-index-in-node=\"0\">Foundation Exclusion:<\/b> While the extension covers the building, the sum insured typically excludes the value of the <b data-path-to-node=\"6,5,0\" data-index-in-node=\"115\">plinth and foundations<\/b> unless specifically requested and agreed upon.<\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Unfortunately, earthquake damage is not covered under a standard <\/span><a href=\"https:\/\/securenow.in\/property-insurance\/fire-insurance\"><span style=\"font-weight: 400;\">fire insurance<\/span><\/a><span style=\"font-weight: 400;\"> policy, even though a major earthquake can cause significant harm to the insured&#8217;s property or goods. To address this gap in coverage, many proactive businesses and organisations choose to include an earthquake extension clause in their <\/span><span style=\"font-weight: 400;\">fire insurance<\/span><span style=\"font-weight: 400;\"> policy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The earthquake extension clause is an additional provision that can be added to a <\/span><span style=\"font-weight: 400;\">fire insurance<\/span><span style=\"font-weight: 400;\"> policy, which specifically covers damages caused by earthquakes. A standard policy lacks this protection. Availing the earthquake extension cover, for an added premium, offers invaluable peace of mind to the insured.<\/span><\/p>\n<h2><b>The protection provided under the earthquake extension clause of the fire insurance policy<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Under the earthquake extension clause, the insured is protected in the following two scenarios:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><b>Scenario 1:<\/b><\/h3>\n<p>Earthquake fire coverage protects the insured against direct loss or damage caused by fire resulting from an earthquake.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><b>Scenario 2:<\/b><\/h3>\n<p><span style=\"font-weight: 400;\"> coverage for earthquake shock \u2013 it covers loss or damage resulting from the shock caused by an earthquake.<\/span><\/li>\n<\/ol>\n<h2><b>Impact of the earthquake extension clause on the fire insurance policy premium<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To benefit from this coverage, the insured must pay an extra premium to their insurers or insurance company. After paying the agreed-upon amount, the insured will receive coverage. This includes protection against property loss or damage caused by earthquakes or their after-effects.<\/span><\/p>\n<p>The insured must understand the policy document&#8217;s conditions. This includes those pertaining to the earthquake extension clause, which may specify the following conditions:<\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Excess clause<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">An excess clause deducts a compulsory amount from the claim, encouraging prudent action. If the claim is less than this amount, the insurer pays nothing. The earthquake exclusion clause excess is generally 5% or a minimum of Rs. 10,000, which may vary among insurers, and policyholders should be aware of their policy&#8217;s terms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if you claim INR 1,00,000, and the fire insurance policy&#8217;s excess clause states INR 10,000. In this scenario, the insurer will pay a claim of INR 90,000, with you responsible for the remaining INR 10,000 mentioned in the excess clause.<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Onus of proof<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The insured must provide proof of property loss or damage caused by an earthquake or its resulting actions as per the conditions outlined in the policy document.\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Extension cover<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The extension is granted if the property is a single compound\/complex\/location, and the sum insured for this extension must match the sum insured for the main policy, except for the value of the plinth and foundations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, availing of the necessary add-ons like an earthquake extension cover can enhance your fire insurance policy and can help you avail of complete protection. <\/span><a href=\"https:\/\/securenow.in\/property-insurance\/fire-insurance\"><span style=\"font-weight: 400;\">Property Fire insurance<\/span><\/a><span style=\"font-weight: 400;\"> is crucial for protecting your business from devastating financial losses due to fires. It compensates for damages, repairs, lost equipment, and income. Without it, your business may not survive. In case of a fire and related accidents, inform your insurer immediately and cooperate with surveyors for assessment. Having the right coverage, knowing your fire insurance policy, and following the necessary claim processes can help you reap the benefits of the policy at the right time.<\/span><\/p>\n<h3>Summary Table: Standard Fire Policy vs. Earthquake Extension<\/h3>\n<table data-path-to-node=\"3\">\n<thead>\n<tr>\n<td><strong>Feature<\/strong><\/td>\n<td><strong>Standard Fire Policy<\/strong><\/td>\n<td><strong>With Earthquake Extension<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span data-path-to-node=\"3,1,0,0\"><b data-path-to-node=\"3,1,0,0\" data-index-in-node=\"0\">Primary Coverage<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,1,1,0\">Fire, Lightning, Aircraft Damage, Storms.<\/span><\/td>\n<td><span data-path-to-node=\"3,1,2,0\">All standard perils <b data-path-to-node=\"3,1,2,0\" data-index-in-node=\"20\">PLUS<\/b> Earthquake risks.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,2,0,0\"><b data-path-to-node=\"3,2,0,0\" data-index-in-node=\"0\">Earthquake Fire<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,2,1,0\">Generally excluded if caused by a tremor.<\/span><\/td>\n<td><span data-path-to-node=\"3,2,2,0\"><b data-path-to-node=\"3,2,2,0\" data-index-in-node=\"0\">Covered:<\/b> Loss from fire resulting from a quake.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,3,0,0\"><b data-path-to-node=\"3,3,0,0\" data-index-in-node=\"0\">Earthquake Shock<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,3,1,0\"><b data-path-to-node=\"3,3,1,0\" data-index-in-node=\"0\">Not Covered.<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,3,2,0\"><b data-path-to-node=\"3,3,2,0\" data-index-in-node=\"0\">Covered:<\/b> Direct structural damage from tremors.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,4,0,0\"><b data-path-to-node=\"3,4,0,0\" data-index-in-node=\"0\">Premium Cost<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,4,1,0\">Base Premium.<\/span><\/td>\n<td><span data-path-to-node=\"3,4,2,0\">Base Premium + <b data-path-to-node=\"3,4,2,0\" data-index-in-node=\"15\">Additional Add-on Premium<\/b>.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,5,0,0\"><b data-path-to-node=\"3,5,0,0\" data-index-in-node=\"0\">Claim Deductible<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,5,1,0\">Standard Policy Excess.<\/span><\/td>\n<td><span data-path-to-node=\"3,5,2,0\"><b data-path-to-node=\"3,5,2,0\" data-index-in-node=\"0\">Specific Excess:<\/b> Usually 5% or min. \u20b910,000.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,6,0,0\"><b data-path-to-node=\"3,6,0,0\" data-index-in-node=\"0\">Sum Insured<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,6,1,0\">Total value of assets.<\/span><\/td>\n<td><span data-path-to-node=\"3,6,2,0\">Must match the main policy Sum Insured.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">In conclusion, if you are seeking protection against earthquake damage you can add an earthquake extension clause to the fire insurance policy. <\/span><a href=\"https:\/\/securenow.in\/property-insurance\/fire-insurance\"><span style=\"font-weight: 400;\">Online fire insurance<\/span><\/a><span style=\"font-weight: 400;\"> purchasing options can make it easy to research and compare policies from multiple insurers to ensure the best coverage and deal. By using the resources online, you can make an informed decision about your insurance needs.<\/span><\/p>\n<h3 data-path-to-node=\"8\">Frequently Asked Questions (FAQs)<\/h3>\n<h4 data-path-to-node=\"9\"><b data-path-to-node=\"9\" data-index-in-node=\"0\">1. Is a fire caused by an earthquake covered under my basic fire policy?<\/b><\/h4>\n<p data-path-to-node=\"9\"><strong>A)<\/strong> No. In most standard policies, if a fire is triggered by an earthquake (e.g., a gas line rupture during a tremor), it is excluded unless you have specifically added the <b data-path-to-node=\"9\" data-index-in-node=\"242\">Earthquake Extension Clause<\/b>.<\/p>\n<h4 data-path-to-node=\"10\"><b data-path-to-node=\"10\" data-index-in-node=\"0\">2. How much extra does the Earthquake Extension cost?<\/b><\/h4>\n<p data-path-to-node=\"10\"><strong>A)<\/strong> The cost varies based on the <b data-path-to-node=\"10\" data-index-in-node=\"83\">seismic zone<\/b> your property is located in. Properties in high-risk areas (like Zone V) will have a higher add-on premium compared to those in low-risk zones.<\/p>\n<h4 data-path-to-node=\"11\"><b data-path-to-node=\"11\" data-index-in-node=\"0\">3. What is the &#8220;Excess&#8221; in an earthquake claim?<\/b><\/h4>\n<p data-path-to-node=\"11\"><strong>A)<\/strong> The excess is the amount you must pay out-of-pocket before the insurance kicks in. For earthquake extensions in India, this is typically <b data-path-to-node=\"11\" data-index-in-node=\"185\">5% of each claim amount<\/b>, subject to a minimum of \u20b910,000. This ensures that the policy is used for significant losses rather than minor cracks.<\/p>\n<h4 data-path-to-node=\"12\"><b data-path-to-node=\"12\" data-index-in-node=\"0\">4. Can I insure just the earthquake risk without buying a fire policy?<\/b><\/h4>\n<p data-path-to-node=\"12\"><strong>A)<\/strong> Generally, no. The earthquake cover is provided as an <b data-path-to-node=\"12\" data-index-in-node=\"125\">extension or add-on<\/b> to a base Fire or Property Insurance policy. It cannot be purchased as a standalone contract.<\/p>\n<h4 data-path-to-node=\"13\"><b data-path-to-node=\"13\" data-index-in-node=\"0\">5. Does the extension cover the &#8220;Aftershocks&#8221; of an earthquake?<\/b><\/h4>\n<p data-path-to-node=\"13\"><strong>A)<\/strong> Yes. Loss or damage caused by <b data-path-to-node=\"13\" data-index-in-node=\"94\">after-effects<\/b> (aftershocks) that occur within a specified window (usually 72 hours) of the initial earthquake is typically considered part of the same occurrence and is covered under the clause.<\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is a fire caused by an earthquake covered under my basic fire policy?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No. In most standard policies, if a fire is triggered by an earthquake (e.g., a gas line rupture during a tremor), it is excluded unless you have specifically added the Earthquake Extension Clause.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How much extra does the Earthquake Extension cost?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The cost varies based on the seismic zone your property is located in. Properties in high-risk areas (like Zone V) will have a higher add-on premium compared to those in low-risk zones.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the \\\"Excess\\\" in an earthquake claim?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The excess is the amount you must pay out-of-pocket before the insurance kicks in. For earthquake extensions in India, this is typically 5% of each claim amount, subject to a minimum of \u20b910,000. This ensures that the policy is used for significant losses rather than minor cracks.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Can I insure just the earthquake risk without buying a fire policy?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Generally, no. The earthquake cover is provided as an extension or add-on to a base Fire or Property Insurance policy. It cannot be purchased as a standalone contract.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Does the extension cover the \\\"Aftershocks\\\" of an earthquake?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Yes. Loss or damage caused by after-effects (aftershocks) that occur within a specified window (usually 72 hours) of the initial earthquake is typically considered part of the same occurrence and is covered under the clause.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n<h4><b>About The Author<\/b><\/h4>\n<p><strong>Shivani<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">MBA Insurance and Risk<\/span><\/p>\n<p><span style=\"font-weight: 400;\">She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. <\/span><span style=\"font-weight: 400;\">She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A fire insurance policy provides coverage against any property loss or damage in the event of a fire. Policy documents specify perils like fire, lightning, aircraft damage, storm, typhoon, and hurricane, offering insured protection. This article will explore the addition of an earthquake extension clause to a fire insurance policy. Key Takeaways The Coverage Gap: [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"no","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1370,989,6],"tags":[45,1680,1697,1803],"class_list":["post-26736","post","type-post","status-publish","format-standard","hentry","category-property-equipment-insurance","category-product-features-property-insurance","category-property-insurance","tag-fire-insurance","tag-fire-insurance-policy","tag-online-property-fire-insurance","tag-earthquake-extension-in-fire-insurance"],"acf":[],"modified_by":"SecureNow","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/26736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=26736"}],"version-history":[{"count":8,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/26736\/revisions"}],"predecessor-version":[{"id":36247,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/26736\/revisions\/36247"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=26736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=26736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=26736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}