Insurance 101 – Chapter 8 – Volume 23 – Catastrophe Deductibles

Catastrophe Deductibles

In a case claiming newly discovered damages from the January 1994 Northridge California earthquake, the court concluded that the  undisputed facts before the trial court on summary judgment established that in April 1994, State Farm, after conducting a detailed inspection of the property (except for the individual units to which it was not granted access), determined the replacement cost value for the damage to the condominium complex was $112,977.80 (a sum that did not include any deduction for depreciation). Because this amount of damage was far less than the policy’s $261,239 deductible, State Farm notified the  Homeowners Association that it was not entitled to benefits under its policy for earthquake damage.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.


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