Earthquake insurance is a specialized form of property coverage that protects buyers, homeowners and investors against financial loss from seismic events. Unlike standard homeowners insurance, it kicks in only when ground movement—typically a quake—damages your dwelling or contents.
Both policies may cover Additional Living Expenses and emergency repairs, but only earthquake insurance covers seismic shaking, landslide (if endorsed) and structural settling from tremors. Standard homeowners insurance covers fire or theft post-quake, not the quake itself.
Most insurers offer quake coverage as a standalone policy with its own deductible (5–25% of dwelling value). Some carriers allow you to add an endorsement rider to your homeowners policy, but limits and terms may be more restrictive.
Known as dwelling coverage, this pays to repair or rebuild permanent structures and attached garages.
Covers damaged household items up to a set limit. Valuables like jewelry may require separate endorsements for full replacement value.
Reimburses temporary lodging, meals and related costs if your home is uninhabitable after an earthquake.
Most quake policies exclude flood damage, slow ground movement (subsidence), sinkholes, mudslides and preexisting wear.
Quake deductibles are typically 5–25% of your home’s insured value, not a fixed dollar amount. Higher deductibles lower premiums but raise out-of-pocket costs for even minor damage.
Per-occurrence means each seismic event triggers a new deductible. An annual aggregate caps total payouts in a policy year, limiting your recovery if multiple quakes strike.
Set your coverage at or above current rebuild costs, not market value. Inflation, labor shortages and code upgrades can drive up true replacement expenses.
Living on or near a major fault raises rates. Many insurers use state or federally mapped seismic zones to calculate risk.
Older homes with unreinforced masonry cost more to insure than modern, wood-frame or retrofitted structures.
Installing bolted foundations, shear walls or braced cripple walls can earn premium credits.
Higher dwelling limits and low deductibles equate to higher premiums. Insure contents separately or bundle to optimize cost.
In many California counties and other high-risk regions, lenders oblige buyers to carry quake insurance in escrow until loan payoff.
Some municipalities may require coverage in new construction permits or for major renovations near fault lines.
Mandatory coverage ensures protection but adds cost. Voluntary policies may be dropped if budgets tighten—leaving owners exposed.
Obtain at least three quotes from different insurers or from the California Earthquake Authority if you’re in CA. Compare deductibles, coverage limits and exclusions side by side.
Check ratings from AM Best or Standard & Poor’s to ensure claims will be paid after a major event.
Specialized brokers can tailor packages and identify retrofit credits. Online calculators offer quick ballpark estimates.
Ensure safety, turn off utilities if needed and notify your insurer as soon as possible.
Photograph every damaged area, keep receipts for emergency repairs and meet adjusters on-site to guide the inspection.
Initial payments often arrive within 30–60 days. If you disagree with the adjuster, request an appraisal or mediation per your policy’s dispute clause.
It typically covers dwelling repairs, personal property damage and additional living expenses if your home is uninhabitable.
In high-risk states or counties, lenders often mandate coverage. Some local ordinances may also require it for new builds or major renovations.
California premiums average $800–$1,200/year for a $500K home value, while lower-risk Washington ranges $400–$700. Rates vary by location, construction and deductible.
A 10% deductible means you pay 10% of your home’s insured value per occurrence. On a $500,000 policy, that’s $50,000 out-of-pocket before insurance kicks in.
Yes. Adding foundation bolting, shear walls or bracing can earn credits of 5–20% depending on your insurer.
Fire following an earthquake is usually covered, but landslides and mudflows often require separate endorsements or may be excluded.
