Earthquake Insurance: What It Covers, What It Costs and Who Needs It

Earthquake insurance is a separate policy or endorsement that pays to repair or rebuild your home and replace belongings after earthquake shaking damage. Standard homeowners, renters and condo policies exclude earthquakes, so without this coverage you would pay for quake repairs yourself. Deductibles are usually a percentage of your coverage limit, often 10% to 20%.

That percentage deductible is the part most people misunderstand, and it is the key to deciding whether the coverage makes sense for you. Below we cover what earthquake insurance pays for, how the deductible works in real dollars, what drives the price and how to decide.

Does homeowners insurance cover earthquakes?

No. Nearly every standard homeowners policy contains an "earth movement" exclusion. It removes coverage for earthquakes, and usually for landslides, mudflows and sinking or shifting ground. As we explain in our guide to what homeowners insurance covers, your policy lists covered perils and exclusions, and earth movement sits firmly on the excluded side, alongside flooding.

There is one important exception. If an earthquake ruptures a gas line and your home catches fire, the fire damage is generally covered by your regular homeowners policy. Likewise, theft or explosion that follows a quake is often covered. What is not covered is the cracking, collapse and shifting caused by the shaking itself.

What does earthquake insurance cover?

Earthquake policies generally mirror the main parts of a homeowners policy, though each part may have its own limit and sometimes its own deductible.

Some policies also exclude or limit exterior items like swimming pools, landscaping, driveways and patios. Breakable items such as glass and ceramics may be excluded from personal property coverage. Read the declarations page and the exclusions section closely.

Earthquake coverage for renters and condo owners

Renters can usually buy quake coverage for personal property and living expenses. Condo owners should pay special attention to loss assessment coverage. If the building's master policy does not include earthquake coverage, or has a large deductible, the association may bill each owner a share of the repair cost. Our guide to condo insurance explains how HO-6 policies and master policies fit together.

How earthquake insurance deductibles work

Most home insurance deductibles are a flat dollar amount. Earthquake deductibles are usually a percentage of the dwelling coverage limit, commonly somewhere between 5% and 25%, with 10% to 20% being typical choices. That means the deductible grows with your home's insured value.

Some policies apply the deductible only to the dwelling limit, while others apply it separately to each coverage part or combine them. Many policies also waive the deductible for additional living expenses, so you can get help with a hotel or rental even if the structural damage falls under the deductible. Ask how your quote handles this, because it changes how useful the policy is after a moderate quake. For more on how deductible types work, see our guide to home insurance deductibles.

How much does earthquake insurance cost?

There is no national average worth quoting, because earthquake pricing is extremely local. Premiums can range from quite low in areas with little seismic activity to substantial for older homes near major faults. Prices also vary by insurer and change over time. The main drivers are:

• Location and distance to faults. Seismic hazard maps drive most of the price.
• Soil type. Homes on soft, filled or sandy soil tend to shake more and may cost more to insure.
• Construction. Wood-frame homes generally flex better than unreinforced masonry, which is often more expensive or harder to insure.
• Age and retrofitting. Older homes that are not bolted to the foundation, or that have weak crawl-space walls, carry more risk.
• Coverage limit and deductible. A higher deductible lowers the premium; a higher dwelling limit raises it.

Where to buy earthquake insurance

You can typically get earthquake coverage in one of three ways:

1. An endorsement on your homeowners policy. Some insurers let you add earthquake coverage directly, which is simple to manage.
2. A standalone policy from a private insurer. Specialty and surplus lines carriers sell earthquake-only policies, sometimes with more flexible deductibles or limits.
3. A state-backed program. In California, many residential policies are written through the California Earthquake Authority, a publicly managed, privately funded entity that sells policies through participating insurers.

Availability varies by state and insurer. Your current home insurance agent or company is a good starting point, but it is worth comparing a standalone option too, especially if you want a lower deductible or higher personal property limits.

Who should consider earthquake insurance?

Earthquake risk is not limited to California. Parts of the Pacific Northwest, Alaska, Hawaii, the Intermountain West, and the central United States around the New Madrid Seismic Zone also face meaningful risk. Smaller pockets of seismic activity exist elsewhere. The U.S. Geological Survey publishes hazard maps that show relative risk by area.

Coverage tends to make the most sense when:

• You live in a moderate or high seismic hazard area.
• Your home equity is a large share of your net worth.
• You could not afford to rebuild or keep paying a mortgage on a damaged home.
• Your home is older, masonry or on soft soil.

It may be less compelling if your risk is low, you have ample savings to cover a large loss, or the premium is high relative to the realistic benefit after the deductible. Federal disaster aid is not a substitute; it typically comes as loans or limited grants rather than full rebuilding money.

The bottom line

Earthquake insurance fills a gap that standard home, condo and renters policies leave wide open. The percentage deductible means it will not pay for minor cracks, but it can be the difference between rebuilding and walking away after a major quake. Compare quotes at more than one deductible level, read the exclusions carefully, and weigh the premium against a loss you could not absorb on your own.