Massive Russian Earthquake Exposes Critical Insurance Gaps as US Policyholders Face Tsunami Alerts and Coverage Questions

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US Impact: Insurance Industry Implications & Coverage Gaps Exposed

The Foreign Origin Problem

Traditional homeowner’s insurance policies typically cover earthquake damage, but the nuances become complex when the earthquake originates in a foreign country yet causes tsunami damage to US properties. Many standard policies exclude flood damage unless specifically covered through the National Flood Insurance Program (NFIP), creating potential coverage gaps for tsunami-related losses.

Business Interruption Challenges

For businesses in affected areas, particularly those in tourism-dependent economies like Hawaii, the evacuation orders and tsunami warnings represent significant business interruption losses. However, proving that losses stem from a Russian earthquake rather than routine operational challenges could complicate claims processing.

Evacuation and Emergency Expenses

The mass evacuations triggered by tsunami warnings across multiple US states raise questions about coverage for emergency evacuation expenses, temporary housing, and related costs when the triggering event occurs outside US borders.

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