Earthquake insurance is a separate policy you buy in addition to your homeowners or renters insurance, because standard homeowners policies do not cover earthquake damage.
Your homeowners insurance covers fire, theft, and weather like wind and hail, but earthquake damage is excluded. If an earthquake damages your home, your standard policy will not pay for repairs. Earthquake insurance fills that gap by covering structural damage to your building, damage to permanent fixtures like built-in cabinets, and sometimes personal property inside your home.
You purchase earthquake insurance as an add-on through your homeowners insurance company or, in some states, through a state-run pool. The cost, coverage limits, and deductibles vary by where you live, what your home is worth, and how old your building is. Homes in high-risk earthquake zones like California pay more than homes in low-risk areas.
Key Takeaways
- Earthquake insurance is sold separately from homeowners insurance and covers structural damage, permanent fixtures, and sometimes personal property damaged by earthquakes.
- Deductibles for earthquake insurance are typically 10 to 25 percent of your home's insured value, not a flat dollar amount like other insurance.
- Your location determines both the cost and availability of earthquake insurance; some insurers do not offer it in high-risk zones.
- Most earthquake policies have waiting periods of 10 to 30 days before coverage begins, so you cannot buy it after an earthquake warning.
What earthquake insurance covers and what it does not
Earthquake insurance covers structural damage to your home caused by earthquake movement — cracks in the foundation, damage to walls, roof damage, and broken chimneys. It also covers permanent fixtures like built-in appliances, cabinets, and flooring that are attached to the building. Some policies cover personal property inside your home, such as furniture and electronics, but this is less common and costs more.
Earthquake insurance does not cover damage from other causes that might happen during or after an earthquake. If an earthquake causes a fire and your home burns, earthquake insurance does not pay for the fire damage — your homeowners insurance does. If an earthquake breaks a gas line and causes a gas leak, earthquake insurance does not cover the leak itself. If an earthquake causes a landslide that damages your home, most policies do not cover landslide damage, though some insurers offer landslide coverage as a separate add-on.
Earthquake insurance also does not cover loss of use (the cost of living elsewhere while your home is repaired), business property, or vehicles. If you need coverage for temporary housing after an earthquake, you would need to add that through a separate rider or endorsement to your policy.
How deductibles work for earthquake coverage
Earthquake insurance deductibles are different from other insurance deductibles. Instead of a flat dollar amount like $500 or $1,000, earthquake deductibles are usually a percentage of your home's insured value — typically 10, 15, 20, or 25 percent. If your home is insured for $400,000 and your deductible is 15 percent, your deductible is $60,000. You pay that amount out of pocket before the insurance company pays anything.
The higher your deductible percentage, the lower your premium. A 25 percent deductible costs less per month than a 10 percent deductible, but you pay more if an earthquake happens. Some insurers offer lower deductible options, but they are rare and cost significantly more. A few states, including California, have programs that allow lower deductibles in some cases, but these programs have limits on how much they will pay and may have waiting lists.
Your deductible applies to each earthquake event separately. If two earthquakes happen in the same year, you pay your deductible twice — once for each event.
Cost and availability by location
Earthquake insurance premiums depend on your location's earthquake risk, your home's age and construction type, and the coverage limits you choose. In California, where earthquake risk is high, premiums range widely depending on the specific area and home characteristics. In states with lower earthquake risk, like most of the Midwest and Northeast, premiums are lower but the insurance may be harder to find because fewer insurers offer it.
Some insurance companies do not offer earthquake insurance in high-risk zones, or they limit how many new earthquake policies they will write each year. In California, if your homeowners insurer will not sell you earthquake insurance, you can purchase it through the California Earthquake Authority, a state-run pool. Similar pools exist in other states, though not all states have them. These state pools typically cost more than private insurance but are available to anyone whose homeowners insurer declines to offer earthquake coverage.
Your home's age and construction matter. Older homes, especially those built before modern building codes, cost more to insure because they are more likely to be damaged in an earthquake. Homes built on soft soil or near fault lines also cost more. Newer homes with earthquake-resistant construction may may have access to for discounts.
Waiting periods and when coverage starts
Most earthquake insurance policies have a waiting period of 10 to 30 days before coverage begins. This means if you buy the policy today, it does not cover earthquakes that happen for the next 10 to 30 days, depending on your insurer. You cannot buy earthquake insurance after an earthquake warning or after an earthquake has already happened — the waiting period prevents people from buying coverage only when they know a quake is coming.
The waiting period starts when your policy is issued, not when you pay your first premium. Some insurers waive the waiting period if you buy earthquake insurance within a certain time of purchasing your homeowners policy, but this varies by company. Check with your insurer about their specific waiting period rules.
Once the waiting period ends, your coverage is active for any earthquake that occurs. If you cancel your policy and then buy it again later, a new waiting period begins.
How to buy earthquake insurance
You buy earthquake insurance by contacting your homeowners insurance company and asking to add it to your policy. Your insurer will ask for information about your home — its age, construction type, square footage, and location — to calculate a premium. You can choose your deductible percentage and coverage limits, and the insurer will quote you a price.
If your homeowners insurer does not offer earthquake insurance or will not sell it to you, you have other options. You can shop with other insurance companies that do offer it in your area. You can also contact your state's earthquake insurance pool if one exists. To learn about your state has a pool, search "[your state] earthquake insurance pool" or contact your state's insurance commissioner's office.
Earthquake insurance is usually paid as an annual premium added to your homeowners insurance bill, though some insurers allow monthly payments. The cost is separate from your homeowners premium and appears as a line item on your bill.
Comparing earthquake insurance to other options
Some homeowners choose not to buy earthquake insurance and instead set aside money in savings to cover potential earthquake damage. This works if you have enough savings to repair or rebuild your home, but it is a significant financial risk. A major earthquake can cause hundreds of thousands of dollars in damage, and rebuilding can take years.
Others buy earthquake insurance with a high deductible to keep premiums low, accepting that they will pay a large amount out of pocket if an earthquake happens. This approach reduces your monthly cost but leaves you exposed to a big bill if a quake occurs. A middle ground is a moderate deductible — perhaps 15 or 20 percent — that balances monthly cost with out-of-pocket risk.
If you have a mortgage, your lender does not require earthquake insurance the way it requires homeowners insurance. However, if an earthquake damages your home and you have no insurance, you still owe the mortgage while your home is damaged. Earthquake insurance protects both your home and your ability to pay your loan.
What happens when you file an earthquake insurance claim
If an earthquake damages your home, contact your insurance company as soon as it is safe to do so. Your insurer will assign an adjuster to inspect the damage and estimate repair costs. The adjuster will determine what damage is covered under your policy and what is not. For example, if the earthquake caused both structural damage and a fire, the adjuster will separate the earthquake damage (covered by earthquake insurance) from the fire damage (covered by homeowners insurance).
You pay your deductible first, and the insurance company pays the rest up to your policy limits. If repair costs exceed your coverage limit, you pay the difference. The claims process typically takes several weeks to several months, depending on the extent of damage and how busy your insurer is after a major earthquake event.
Keep records of your home's condition before an earthquake — photos, videos, and receipts for major improvements — to support your claim. Document all damage with photos and written descriptions. If you disagree with the adjuster's estimate, you can request a second opinion or hire your own engineer to assess the damage.
Frequently Asked Questions
Does earthquake insurance cover damage from aftershocks?
Aftershocks are considered part of the same earthquake event, so they are covered under the same claim and the same deductible. You do not pay a separate deductible for aftershock damage. However, if a separate, distinct earthquake occurs weeks or months later, it is treated as a new event and you pay your deductible again.
Can I get earthquake insurance for a rental apartment?
Yes, renters can buy earthquake insurance, though it works differently than homeowners earthquake insurance. Renters earthquake insurance covers your personal property (furniture, electronics, clothing) but not the building itself, since you do not own it. The landlord's building is covered by the landlord's earthquake insurance, if they have it.
What if I live in a low-earthquake-risk area — do I need earthquake insurance?
Earthquake risk varies by location, and some areas have very low risk. However, earthquakes can occur in unexpected places. The 2011 earthquake in Virginia surprised many people in the East Coast, and the 2016 earthquake in Oklahoma was caused by human activity. Whether to buy earthquake insurance depends on your risk tolerance and financial situation, not just your area's historical risk.
Will my homeowners insurance cover earthquake damage if I do not buy a separate earthquake policy?
No. Standard homeowners insurance explicitly excludes earthquake damage. If you do not buy earthquake insurance and an earthquake damages your home, your homeowners policy will not pay for repairs. You would have to pay for all repairs yourself.
Can I buy earthquake insurance after I hear an earthquake warning?
No. The waiting period prevents this. If you try to buy earthquake insurance after a warning or after an earthquake has occurred, the policy will have a waiting period before it becomes active, so it will not cover that event. You must buy earthquake insurance before you know an earthquake is coming.