Most home and car insurance policies will cover some damage from a volcano eruption, but there are some that don’t.
Visit the USGS Volcano Hazards Program to find out about volcanoes and the chances of an eruption in your area. This program posts up-to-date information about volcanic activity and has a color-coded risk assessment system for each volcano. If you live less than 20 miles from a volcano, learn more about how you and your family can get ready for and handle an eruption.
Some of the effects of volcanic eruption include: airborne shock waves, volcanic blast, dust, ash or lava flow. You should look over your home, renters, or car insurance policies to see what they cover for property damage caused by a volcanic eruption and its effects. Also check to see how fire or explosion resulting from volcanic eruption might be covered.
Its extremely helpful to have a home inventory of your personal property. This information can help you make sure you have enough insurance and can also be very useful when your claim is being looked over. To learn more, contact an insurance agent.
Volcanic eruptions can cause immense destruction, damaging homes, vehicles, and entire communities That’s why many wonder – is there special volcano insurance you can buy to protect against volcanic damage?
The truth is that separate volcano insurance or lava flow insurance doesn’t exist. However, coverage from damage from a volcanic eruption is sometimes included in a homeowners insurance policy, commercial property insurance, commercial auto insurance, and other business insurance policies.
Understanding how volcano damage is covered by insurance is crucial if you live in an area at risk. This guide will explain everything you need to know about volcano insurance coverage
What Effects Can Volcanoes Have?
Volcanic eruptions can wreak havoc in many ways:
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Lava flow – Molten rock pouring from the volcano can destroy anything in its path. Flow speed varies from 2 mph to over 35 mph.
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Ash and tephra – Lightweight volcanic ash and heavier tephra (sand-sized or larger particles) can collapse roofs, damage machinery, and ruin crops.
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Lahars – Mudflows or debris flows composed of volcanic material and water. Lahars can travel over 60 mph and destroy structures in their path.
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Earthquakes – Seismic activity often precedes or accompanies eruptions. Quakes can damage property through ground shaking and opening fissures.
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Pyroclastic flows – Rapid flows of hot ash, tephra and gases can reach temperatures over 1,800°F and speeds over 450 mph, incinerating everything in their path.
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Volcanic gases – Toxic gases like carbon dioxide, hydrogen sulfide and sulfur dioxide can be released before, during and after eruptions.
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Tsunamis – Underwater volcanoes and landslides caused by eruptions can generate disastrous tsunamis.
Is Volcano Damage Covered by Homeowners Insurance?
Unfortunately, the standard homeowners insurance policy does not cover damage from volcanic eruptions or lava flows.
According to the Insurance Information Institute (III), the only volcanic effects typically covered are:
- Fire or explosion resulting from volcanic eruption
- Damage caused by ash, dust, lava and airborne shockwaves
However, the III notes that many policies exclude earthquake damage regardless of cause. So if an earthquake results from volcanic activity, which is common, damage is often excluded.
Additionally, homeowners policies do not cover flood damage. Lahars and mudflows often qualify as flood by insurance standards, leaving you unprotected.
The bottom line is you can’t rely on your homeowners insurance to reimburse volcanic damage. Purchasing add-on earthquake coverage and flood insurance through the National Flood Insurance Program (NFIP) is recommended if you live in a volcanic zone.
Does Renters Insurance Cover Volcano Damage?
Like homeowners insurance, renters insurance provides limited protection from volcanic eruptions. The standard policy only covers:
- Fire damage
- Explosion damage
- Direct property damage from ash, dust, lava, airborne shockwaves
But not:
- Earthquake damage
- Mudflows, lahars, or flooding
- Gradual/indirect damage from ash or dust accumulation
Renters should also consider add-on earthquake coverage and NFIP flood insurance for more complete protection.
Is Car Damage From a Volcano Covered by Auto Insurance?
Volcanic ash and lava flows can easily destroy vehicles. But is your car covered by auto insurance?
Comprehensive coverage will pay for direct vehicle damage caused by volcanic activity. This includes damage from lava, fires, ash, and rocks hitting the car.
Liability and collision coverage would apply to vehicle crashes resulting from reduced visibility or impaired road conditions after an eruption.
However, gradual accumulation of ash causing wear and tear over time is not covered. Routine maintenance for removing ash or replacing air filters would not be reimbursed either.
Does Business Insurance Cover Volcanic Eruptions?
Commercial property insurance policies generally cover volcanic explosion and fire damage, as well as direct property damage from ash, lava flows, and airborne shockwaves.
Business income/extra expense coverage can reimburse lost income and increased costs from suspended operations after a volcanic event. Business interruption not tied to property damage is only covered by an optional policy enhancement.
Like homeowners policies, commercial policies typically exclude earthquake and flood damage. Consider add-on earthquake coverage and NFIP flood insurance if at risk.
Commercial auto insurance would handle vehicle damage much like personal auto policies.
Does Volcano Insurance Exist?
There are no insurance policies that deal exclusively with volcano or lava damage. The major perils – like earthquake and flood – are addressed through add-ons or separate coverage.
Some insurers may offer custom endorsements to cover volcanic actions not normally included, for an additional premium. But most volcanic damage not specifically excluded would already be covered.
Purchasing a separate volcano policy would likely be excessively expensive for the limited additional protection provided.
Factors That Affect Volcano Insurance Claims
If your property is damaged by a volcanic eruption, there are several factors that will determine if you get reimbursed:
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Type of damage – Was it fire, earthquake, flood, gradual dust accumulation, etc? What does your policy cover?
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Proximity – How close were you to the eruption? Insurers are less likely to pay claims from people who chose to live near active volcanoes.
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Policy limits – Do you have enough dwelling and personal property coverage for a total loss? Limits are often inadequate.
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Proof – Can you provide evidence like photos that clearly show volcanic activity caused the damage?
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Exclusions – Damage excluded by your policy will not be reimbursed. Review exclusions closely.
Steps to Take if You Experience Volcano Damage
If your property is impacted by a volcanic eruption, here are important steps to take:
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Evacuate the area if advised and get to safety.
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Thoroughly document damage with photos/video if possible.
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Contact your insurance agent or company to start your claim. Provide detailed damage descriptions.
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Make reasonable emergency repairs to prevent further damage. Keep receipts for reimbursement.
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Compile a detailed home inventory to verify losses. An accurate record will help get fully reimbursed.
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Work cooperatively with claims adjusters. You’ll need to provide access to property and furnish requested paperwork.
Are You Adequately Protected?
Given the limitations of standard homeowners and renters policies, you shouldn’t rely on them alone for volcano coverage. Purchasing add-on earthquake and flood policies can help fill gaps at a relatively low cost if you are at risk.
Likewise, business owners in volcanic zones need to examine their commercial policies closely and verify they have proper earthquake, flood, and business interruption coverages.
To make sure you have adequate volcano insurance protection, consult with a qualified insurance agent in your area. An agent can review your risks and recommend customized solutions so you have peace of mind knowing your property is covered. Don’t wait until it’s too late!
What might be covered from property loss caused by a volcanic eruption
- Most auto insurance policies will pay for direct, sudden damage to your car as long as you have comprehensive coverage at the time of the loss.
- Your policy would cover any car accident that happens before, during, or after a volcanic eruption, just like any other accident.
- Damage to property after a volcano erupts from dust, lava flow, or shockwaves in the air
What might not be covered from property loss caused by a volcanic eruption
- Most homeowner’s insurance policies don’t cover damage from earthquakes, landslides, mudflows, earth tremors, or other earth movements. This is true whether the earthquake caused the volcano eruption or was a result of it. Most of the time, you can get earthquake coverage by adding an endorsement for an extra fee or buying a separate policy. A lot of insurance companies won’t give out policies during or right after an earthquake.
- Flood damage isnt covered under a typical homeowners insurance policy. Through the National Flood Insurance Program, you can get flood insurance as long as your policy is in place before a flood.
- Get in touch with your insurance company or agent to find out if damage from volcanic activity is covered by your policy.
- Neither the auto policy nor the homeowners policy will pay for the costs of taking precautions.
- Costs to remove ash from buildings or personal property inside buildings may be covered if the ash caused direct physical loss that was not intentional.
- Most insurance plans don’t pay for damage that builds up over time to homes or cars from volcanic dust or ash.
- Wear and tear from any circumstance is generally not covered.
You should talk to an insurance agent who knows about the risks in your area if you are worried about losing property because of volcanic activity.
Is there such a thing as volcano insurance in Hawaii?
FAQ
What insurance covers volcanoes?
Do people in Hawaii have volcano insurance?
What happens if your home is destroyed by a volcano?
How much is lava insurance in Hawaii?
Does insurance cover a volcanic eruption?
Most homeowners and auto insurance policies cover you from some damage related to a volcanic eruption, but there are exceptions.
Is there a volcano insurance policy?
There’s no such thing as volcano insurance, even in states that have active volcanoes. Instead, you should look for a homeowners policy that covers volcanic eruptions.
Does homeowners insurance cover volcano damage?
Fire damage, smoke damage and perhaps rocks falling that hit your house may be covered under your homeowners insurance policy. Other volcano-related effects like flooding and earthquakes could require separate coverage, even if they can be traced to the volcanic event. Our independent agents shop around to find you the best coverage.
Does home insurance cover volcanic events?
Our independent agents shop around to find you the best coverage. If you live in a high-risk area like Alaska or Hawaii, it is a good idea to have home insurance coverage that can offer protection for volcanic events. You may be able to add a special endorsement to increase your coverage.