Homeowners Insurance and Earthquakes
You can get earthquake insurance through your home insurance provider as an endorsement or from the state department of insurance.
Earthquake deductibles are a percentage of your limits: this can limit payouts and mean more out-of-pocket costs.
Is earthquake coverage part of insurance?
No. Earthquake damage isn’t covered by standard homeowners or renters insurance policies. If you want protection, you’ll need to add an earthquake endorsement or purchase a separate earthquake policy.
Your first step is to check with your current insurer to see what options are available. In most states, earthquake coverage isn’t automatically offered, though insurers in California are required to make it available to policyholders every other year.[1]
Cost varies, but earthquake insurance often comes with higher deductibles than other types of coverage. These deductibles are usually a percentage of your coverage limit, not a flat dollar amount, which can significantly affect how much a claim pays out.
How to get earthquake coverage:
Option 1:
Contact your current home insurance company to see if they offer an earthquake endorsement. This may not be an option in every state, but it is available in more than you might think.
Option 2:
Find information from your state's insurance department about programs for residents. Earthquake-prone states (California, Alaska, and many others) offer insurance through special programs, and companies offer standalone policies.Â
What does earthquake insurance cover?
Earthquake insurance policies cover damage occurring to your home as a direct result of the seismic event. Earthquake coverage often extends to aftershocks within a specified period after the primary earthquake. This extended time period is determined by your insurer but usually falls somewhere between 24 and 36 hours.
The following losses are typically covered by an earthquake policy:
- Structural damage: If the structure of your home is damaged, this policy will pay for repairs.
- Personal property: Any belongings damaged by the quake will be covered up to your policy limits.
- Replacing your house: If your home is destroyed by an earthquake, this policy will pay to have it rebuilt to the previous standard.
- Temporary housing: Often referred to as additional living expenses, this coverage will pay for a place to stay while your home is being repaired.
Associated perils such as floods, sinkholes, fires and vehicle-related damage are not covered by your earthquake insurance policy. You will need to consult with your insurance company to see about adding appropriate coverage to protect against them.[2]
Does Home Insurance Cover Natural Disasters? | The Zebra
Your home insurance coverage after a natural disaster depends on your location. Most natural disasters, hurricanes, floods, and earthquakes are not covered by homeowners insurance.
How much does earthquake insurance cost?Â
Like other types of insurance, this depends on your location and personal and home details, such as the age of your house, as well as your deductible. It's likely to be between a few hundred and a few thousand dollars per year if you're in a high-risk area.
The most important factor to understand is how deductibles work. Whether you have a standalone earthquake policy or an endorsement, deductibles are handled differently than with most other insurance types.
Instead of a flat dollar amount, earthquake deductibles are typically 2% to 20% of your dwelling coverage.[3]
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If your dwelling limit is $200,000 and your deductible is 5%, you would pay $10,000 out of pocket before coverage applies.
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Some policies apply separate deductibles for your home and personal belongings, which can significantly increase your costs after a claim.
Because of these higher, percentage-based deductibles, earthquake insurance may still leave you responsible for tens of thousands of dollars even if you’re insured. When deciding whether coverage is worth it, weigh the cost of the premium against how much you could realistically afford to pay after an earthquake.
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Get comprehensive coverage to ensure your car is covered in the event of an earthquake.
How are earthquake insurance rates determined?
Earthquake insurance rates are determined by a number of different factors. Your home’s dwelling coverage limit is one such factor. This limit should be set to the amount of money that it takes to rebuild your home to its previous standard. Bear in mind that this is not equal to the home’s market value.
Other factors that determine your earthquake insurance rates could include the following:
- ZIP code: If your home is in close proximity to high-risk earthquake zones, you can expect higher rates.
- Building materials used in your home: Certain materials stand up better than others. For instance, if you have a brick home, you’ll likely have to pay less for insurance coverage because it's a more resistant and hardier material than something like wood.
- Age of your home: Older homes are less likely to have been built with earthquake-resistant materials.
- Foundation type: The type of foundation your home has could affect its ability to withstand an earthquake.
Is earthquake insurance worth it?
Yes, earthquake insurance is usually worth it for homeowners who live in areas where earthquakes are possible and could cause meaningful damage. If you’re in a high-risk region like the West Coast or parts of Oklahoma, this coverage can provide important financial protection that standard homeowners insurance doesn’t offer. Even in states such as South Carolina or Missouri, where earthquakes are less frequent but still possible, coverage may be worth considering if rebuilding costs would be difficult to absorb out of pocket.[4]
Because earthquake damage isn’t covered by standard homeowners insurance, this protection typically requires a separate policy. While cost can be a concern, comparing homeowners insurance rates can help balance the overall expense. Lowering the cost of your base policy may make adding earthquake coverage more manageable.