Earthquake claims could amount to tens of millions

by Gill Montia

Story link: Earthquake claims could amount to tens of millions

In the early hours of yesterday morning, the UK experienced its largest earthquake for almost a quarter of a century, and the damage caused may cost the insurance industry tens of millions of pounds.

Although injuries were minimal, claims are expected from people with structural damage to their homes and ruined possessions.

The quake occurred at around 1am and was felt for around five seconds, from Scotland to South Wales.

The epicentre was located 15 miles north of Lincoln, near Market Rasen, and the British Geological Survey recorded the event as measuring 5.3 on the Richter scale.

Tremors were felt as far afield as Merseyside, Birmingham, Leicestershire, Bedfordshire, Northampton, Norfolk, Surrey and Greater London.

Earthquake damage is covered as standard by buildings and contents insurance policies.

Some motorists may need to claim on the car insurance policies but will only be compensated if the cover is comprehensive.

In the case of third party motor insurance, if a brick from a neighbour’s chimney damages the vehicle, the owner can only make a claim against the neighbour if it can be proved that the chimney was in poor repair before the quake. Otherwise, the damage has occurred as a result of a situation beyond the chimney owner’s control and no claim can be made.