Who will pay for houses damaged in the 5.0-magnitude earthquake in Yibin, Sichuan? A Shenzhen lawyer explains insurance claims and legal accountability paths.
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At 13:08 on August 7, 2026, a magnitude 5.0 earthquake struck near Gao County, Yibin City, Sichuan Province (latitude 28.54 degrees north, longitude 104.68 degrees east), with a focal depth of approximately 10 kilometers. The China Earthquake Networks Center released the information after automatic determination, noting that the final results shall be subject to the official rapid report. The earthquake caused cracks and tile dislodgement on some older residential buildings in the affected area, and walls of a few self-built houses tilted. Fortunately, no casualties have been reported so far. However, after every natural disaster, questions such as who bears the cost of repairing damaged houses, whether developers can invoke "force majeure" to evade liability, and whether homebuyers can claim compensation become the most pressing legal concerns for residents in quake-hit areas. As a Shenzhen lawyer who has long handled real estate and tort disputes, this article will, from the perspective of legal practice
1. Earthquake damage to houses: insurance claims are the primary remedy.
After an earthquake occurs, where does the funding for repairing damaged homes come from? Most families first think of their insured home insurance or business property insurance. However, many policyholders are not aware that in standard home insurance clauses, catastrophic risks such as earthquakes and tsunamis are often listed as **exclusions** — meaning the insurance company will not pay. According to Article 17 of the Insurance Law, insurance companies have the obligation to provide clear prompts and explanations regarding exclusion clauses; if they fail to do so, the clause shall not take effect. Therefore, if your policy does not explicitly list earthquakes as an exclusion, or if the insurance company failed to fulfill its duty of explanation, you still have the right to claim compensation.
In practice, some insurance companies offer additional "earthquake insurance" riders or standalone earthquake catastrophe insurance products. For example, pilot programs for urban and rural residential housing earthquake catastrophe insurance in places like Sichuan and Yunnan offer relatively low premiums, with coverage amounts sufficient to cover home reconstruction costs. The recent earthquake in Gaoxian had a magnitude of 5.0, which qualifies as a moderately destructive earthquake. If a house is insured under such specialized policies, policyholders can file a claim immediately after damage occurs, and the insurance company will assess the loss and settle the claim. It is important to note that when filing a claim, policyholders must preserve photos of the damaged house, repair quotations, and loss certificates issued by property management or community offices, as these are key evidence for the claim. If the insurance company refuses to pay or underpays without justifiable reason, policyholders may file a complaint with financial regulatory authorities under Article 23 of the Insurance Law, or seek recourse through litigation.
Can homeowners who have not purchased any earthquake insurance receive government assistance? According to the Natural Disaster Relief Regulations, the government provides transitional living assistance and subsidies for the restoration and reconstruction of collapsed or severely damaged housing to disaster-affected individuals whose homes have collapsed or been seriously damaged due to disasters. However, these subsidies are usually lower than the actual repair costs and cannot cover all losses, so commercial insurance remains a more reliable safeguard.
II. Can the developer be exempted from liability due to "force majeure"? The key lies in whether the housing quality complies with regulations.
An earthquake is a typical **force majeure** event. Under Article 180 of the Civil Code, a party that fails to perform its civil obligations due to force majeure shall not bear civil liability. However, this provision is not a "get-out-of-jail card" for developers. If the direct cause of property damage is substandard construction quality or inadequate seismic design, rather than the destructive force of the earthquake itself, the developer must still bear liability for breach of contract.
According to Article 58 of the Construction Law and Article 40 of the Regulation on Quality Management of Construction Projects, the warranty period for the foundation and main structure of a building is the reasonable service life specified in the design documents, typically 50 years. If a house suffers damage due to quality defects within the warranty period, the developer must be responsible for repair or compensation. Specifically regarding this earthquake, if most buildings in the same area and of the same era remain intact while only a few buildings experience structural cracking, then there is strong suspicion of quality problems in the damaged buildings. The owners may entrust a professional appraisal agency to conduct a safety assessment of the building. If the appraisal conclusion determines that the building does not meet the fortification standards of the Code for Seismic Design of Buildings (GB50011-2010), the developer cannot evade liability by citing the earthquake as force majeure.
In judicial practice, after the Wenchuan earthquake in Sichuan, there were multiple cases where owners sued developers over housing quality disputes. The courts ultimately determined that if there was a causal relationship between the collapse of a building and the use of substandard materials during construction, the developer should bear compensation. Although the Shenzhen area is not a high-earthquake-risk zone, natural disasters such as typhoons and torrential rains occur frequently, and similar rules apply to disputes involving underground garage flooding and exterior wall detachment caused by extreme weather. Therefore, owners must verify the "Housing Quality Warranty" and "Housing Use Manual" when taking delivery of their property, and retain documents such as the purchase contract and inspection records for the purpose of protecting their rights.
III. If the mortgaged house is damaged, can the monthly payments be suspended or reduced?
If an earthquake causes partial damage or even total collapse of a house, do homebuyers still need to continue repaying their bank loans? This is the most anxiety-inducing question for many families in the earthquake-affected areas. From a legal perspective, the house is mortgaged to the bank, but the loan contract exists independently. According to Article 590 of the Civil Code, if a contract cannot be temporarily performed due to force majeure, liability may be partially or fully exempted, but monetary debts are generally not exempted due to force majeure. Therefore, unless the bank proactively introduces relief policies, the homebuyer's repayment obligation will not automatically disappear.
However, some banks may introduce temporary measures after major natural disasters, such as deferred repayment, interest reductions, and adjusted repayment plans. For example, after the COVID-19 outbreak in 2020, the China Banking and Insurance Regulatory Commission explicitly required banks to provide credit record protection for those affected by the pandemic. Following this earthquake, relevant banks may follow up with similar policies. It is recommended that affected property owners contact their lending banks as soon as possible, submit disaster certification issued by the community or government, and apply for deferred repayment or loan restructuring. At the same time, if a house is completely destroyed by the earthquake and the land ownership rights cease to exist, the mortgage right theoretically also extinguishes, but the debt is not waived, and the bank may still pursue recovery against other assets. This area involves considerable legal disputes and requires case-by-case analysis. A Shenzhen lawyer suggests that property owners with large mortgage loans should definitely consult professional lawyers to evaluate the pros and cons between continuing repayment and defaulting, so as to avoid affecting their personal credit records due to blindly stopping mortgage payments.
IV. Lease Contract Disputes During Earthquakes: Can Rent Be Reduced or Waived?
Many residents in the earthquake-affected area are tenants, and the houses they rent have been damaged by the earthquake and are no longer habitable. Can the lessee request termination of the contract or a reduction in rent? According to Article 563 of the Civil Code, if the purpose of the contract cannot be achieved due to force majeure, the parties may terminate the contract. If the house is appraised as a dangerous structure or seriously damaged and unsuitable for habitation, the lessee has the right to terminate the lease contract and demand the return of the deposit and prepaid rent. If the house is only slightly damaged and does not affect habitation, the contract should continue to be performed, but the lessee may negotiate with the lessor to share the repair costs.
It is worth noting that the lessor bears the obligation of repair. Under Article 712 of the Civil Code, the lessor shall ensure that the leased property meets the agreed purposes of use. After an earthquake, the lessor should promptly repair the premises; if the lessor delays the repair, causing the lessee to be unable to use the property, the lessee may make the repairs themselves and require the lessor to bear the costs, or claim a rent reduction in accordance with Article 713. Rental disputes are frequent in the Shenzhen area, and lawyers often advise tenants to clearly define force majeure clauses when signing contracts, specifying how rent will be handled in circumstances such as earthquakes and typhoons, to avoid disputes after the fact.
5. Lawyer's advice: Three steps for post-disaster rights protection; preserving evidence is key.
Regarding property losses caused by earthquakes, whether owners or tenants, all should take the following steps: First, promptly take photos and videos to record the full extent and details of the damage to the property, and ask community staff, property management, or neighbors to witness and preserve the evidence. Second, contact the insurance company to report the claim, apply for compensation according to the policy terms, and simultaneously apply to the housing and urban-rural development department for a housing safety assessment to obtain a professional damage evaluation report. Third, if developer liability is involved or the insurance company refuses to pay, consult a professional lawyer as soon as possible to assess the feasibility of litigation. The law does not protect those who sleep on their rights. According to Article 188 of the Civil Code, the ordinary statute of limitations is three years, calculated from the date the injured party becomes aware of the damage to their rights. Residents in earthquake-affected areas must not miss the window for asserting their rights while busy with
Guangdong Zhiming Law Firm has long focused on real estate, tort, and insurance disputes, accumulating extensive experience in handling legal issues arising from natural disasters. If you or your friends or relatives have suffered property damage, encountered obstacles in claims, or faced contract disputes due to an earthquake, please feel free to contact us. We will provide professional legal support to help you protect your rights and interests in accordance with the law.
Natural disasters are merciless, but the law serves as a strong backing. Scientific insurance, preserving evidence, and timely rights protection are three lines of defense for every family in coping with risks such as earthquakes. May the people in the disaster-stricken areas rebuild their homes soon, and may every reader make preparations beforehand while it is still peaceful.
