Summary of this article
Earthquake damage is covered under home insurance as an “Act of God.”
Policies cover structural cracks, fire, water leakage, and aftershock losses.
Bharat Griha Raksha Policy includes earthquake coverage for home and contents.
Premiums rise for older homes and properties in higher seismic zones.
A 5.7 Richter scale earthquake triggered tremors across Kolkata. While there were no casualties in Kolkata (India), six people died in Bangladesh.
Earthquakes are increasingly becoming common, especially if you stay in a seismic zone. A natural calamity like an earthquake can cause severe property damage, and here is where property insurance comes in.
In India, property insurance coverage is very low at one per cent, but such natural occurrences happen without warning and can leave you in a lurch. A home insurance policy is thus very important.
1 November 2025
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What Insurers Call An “Act of God”
“Insurers use the term "Act of God" to describe natural events that humans cannot affect, such as earthquakes, floods, cyclones, or lightning. Most comprehensive insurance policies, especially those for homes or vehicles, cover acts of God,” says Kunal Varma, CEO and Founder, Freo.
How Home Insurance Covers Earthquake Damage
A home insurance policy will thus cover damage from earthquakes under its "Fire and Allied Perils” section. Cracks, damage to the foundation, and damage due to aftershocks will result in repair costs. A home insurance policy will cover these costs.
Even if there is no direct damage from the earthquake, but there is indirect damage, like bursting of water pipes, fire triggered by short circuits, or explosion of gas cylinders, it will be covered.
Also, it is important to know that the Bharat Griha Raksha Policy, a standardized home insurance policy introduced by the Insurance Regulatory and Development Authority of India (Irdai), also provides coverage for natural disasters. So any damage to the building or contents due to an earthquake will be covered. Also, if you need to stay in an alternate accommodation after your house is damaged, the expenses will be covered.
Premiums will depend on the type of construction and age of the building. Also, if the building is in a seismic zone, the premiums will be higher.
What To Keep In Mind
It is important to check what is covered because there could be sublimits for items like electronics, jewelry, and so on.
Occasionally, insurers can deny claims if the particular disaster is not listed as one included in the policy or if the loss was preventable. “Therefore, reading the fine print and understanding exactly what is included in your policy is very important. Most claims disputes arise from a difference of opinion as to what the policy covers and what the insured thinks is covered,” says Varma.
Given the unpredictable nature of natural calamities like earthquakes, a home insurance policy provides peace of mind.
