Insurers face £10m earthquake bill

28 February 2008

Britain’s largest earthquake in 25yrs causes extensive damage

A maze of undetected faults caused the largest earthquake in Britain for 25 years.

The earthquake occurred yesterday at 12.56am, measured 5.2 on the Richter scale and came from an uncharted crack in the Earth’s crust 3.1 miles underneath Market Rasen, in Lincolnshire.

According to the Association of British Insurers (ABI), the damage to homes and properties caused by the ten-second tremor is expected to add up to more than £10 million.

Those homeowners affected by the earthquake should be covered by their home insurance. Earthquakes are considered to be a standard danger faced by homes, just like storms and floods, therefore any structural damage to a property would be covered by a standard buildings policy.

However, if any objects in the home have been damaged these would only be covered by a contents insurance policy.

If your vehicle has been damaged by falling tiles or chimney pots it will only be covered if you have a fully comprehensive car insurance policy.

Early yesterday, Jason Harris, who is senior claims manager at Norwich Union said: “We have seen claims coming in to our call centres overnight, but we expect further calls today as damage will be more obvious in daylight.

“At the moment these are reports of mainly minor damage, such as tiles off roofs, breakages inside the home and brick walls collapsing.”

Each year Britain sees 200 earthquakes but only an eighth of these can actually be felt.

Buildings are considered to be at risk from damage if the earthquake is higher than magnitude 5.