Earthquake insurance is a separate policy you buy in addition to standard homeowners insurance, because standard policies exclude earthquake damage entirely.
Your homeowners insurance covers fire, theft, wind, and hail — but not earthquakes. If an earthquake damages your home, your standard policy will not pay for repairs. Earthquake insurance is the only way to protect against this risk, and it works differently than other coverage: you pay a separate premium, choose your own deductible (usually 10 to 25 percent of your home's replacement value), and the insurer pays for structural damage and the cost to repair or rebuild.
Where you live determines whether earthquake insurance makes financial sense. If you live in California, Washington, Oregon, or other seismically active regions, the premium is often reasonable relative to the risk. If you live in a low-risk area, the premium may be high enough that the risk of an earthquake is genuinely small. Either way, you need to understand what the policy covers, what it costs, and what your actual exposure is.
Key Takeaways
- Standard homeowners insurance does not cover earthquake damage, so you must buy a separate earthquake policy if you want this protection.
- Earthquake insurance typically has a high deductible (10 to 25 percent of your home's value) and covers structural damage, foundation repair, and rebuilding costs.
- The cost of earthquake insurance depends on your location, your home's age and construction type, and the deductible you choose — premiums vary widely by state and insurer.
- In California and some other states, you can buy earthquake insurance through a state-run insurer of last resort if private insurers will not cover you.
What earthquake insurance actually covers
Earthquake insurance pays for structural damage to your home caused by seismic activity. This includes damage to the foundation, walls, roof, and built-in systems like plumbing and electrical wiring. If an earthquake causes your home to shift on its foundation or cracks to spread through load-bearing walls, the policy covers the cost to repair or rebuild those elements.
The policy also covers damage to permanently attached items: built-in cabinets, fixtures, and appliances that are part of the home's structure. Personal belongings — furniture, clothing, electronics — are not covered by earthquake insurance. Those are covered (if at all) by your homeowners policy's personal property coverage, which also excludes earthquake damage unless you add an earthquake endorsement to that part of your policy.
One important limit: earthquake insurance does not cover damage that results from something other than the earthquake itself. If an earthquake causes a gas leak and your home catches fire, the fire damage is covered by your homeowners policy, not your earthquake policy. If an earthquake triggers a landslide that buries your home, the landslide damage is typically not covered — though some policies offer landslide coverage as an add-on.
How deductibles work in earthquake policies
Earthquake insurance deductibles are different from other insurance deductibles. Instead of a fixed dollar amount (like $500 or $1,000), earthquake deductibles are usually a percentage of your home's replacement value — typically 10, 15, 20, or 25 percent. If your home is worth $400,000 and you choose a 20 percent deductible, you pay the first $80,000 of earthquake damage out of pocket before the insurer pays anything.
A higher deductible lowers your premium significantly. Choosing 25 percent instead of 10 percent can cut your annual cost in half or more. The trade-off is that you need to be able to afford that out-of-pocket amount if an earthquake strikes. Many homeowners choose a deductible they can cover with savings or a home equity line of credit, then accept the higher premium for lower out-of-pocket risk.
Some insurers offer a small number of fixed-dollar deductible options ($5,000 or $10,000) in addition to percentage-based ones, but these are less common and usually cost more in premium. Ask your insurer what options they offer in your state.
Cost and availability by region
Earthquake insurance premiums vary dramatically by location. In California, where seismic risk is high, premiums typically range from $800 to $2,000 per year for a $400,000 home, depending on the deductible and the home's age and construction. In Washington and Oregon, premiums are often lower. In low-risk states like Florida or the Midwest, premiums can be $200 to $500 per year, but some insurers do not offer earthquake coverage at all in those regions.
Your home's age and construction type also affect the cost. Older homes, especially those built before modern building codes, cost more to insure because they are more vulnerable to earthquake damage. Homes built on soft soil or near fault lines cost more than homes on stable ground. Wood-frame homes typically cost less to insure than masonry or unreinforced concrete block construction.
In California, if private insurers will not cover you, you can buy earthquake insurance through the California Earthquake Authority (CEA), a state-run insurer of last resort. Similar programs exist in other states. These policies are often more expensive than private insurance but provide coverage when the private market will not.
What earthquake insurance does not cover
Earthquake insurance excludes several types of damage. It does not cover landslides, mudslides, or ground subsidence caused by the earthquake — though some insurers offer these as separate add-ons. It does not cover damage to swimming pools, hot tubs, or detached structures like garages or sheds (though some policies cover detached structures for an additional premium). It does not cover loss of use or additional living expenses if you have to leave your home while repairs are made.
The policy also does not cover damage caused by tsunamis, even though tsunamis are triggered by earthquakes. Tsunami coverage is extremely rare and must be purchased separately, if available at all. Similarly, earthquake insurance does not cover damage from volcanic eruptions or explosions, even if they are earthquake-related.
Personal property damage is excluded unless you add an earthquake endorsement to your homeowners policy's personal property coverage. Even then, the coverage is usually limited and subject to the same high deductible as the structural coverage.
How to decide whether you need earthquake insurance
The decision depends on three things: your location's seismic risk, your home's value, and your ability to rebuild without insurance. If you live in a high-risk area like California, the Pacific Northwest, or near a known fault line, and you could not afford to rebuild your home out of pocket, earthquake insurance is worth serious consideration. If you have a mortgage, your lender does not require earthquake insurance (unlike flood insurance in high-risk flood zones), but rebuilding without it would be financially catastrophic.
If you live in a low-risk area and have substantial savings, the premium may not be worth the small risk. If you live in a low-risk area and have little savings, the premium is probably still too high relative to the actual risk. Run the numbers: divide the annual premium by the percentage chance of a damaging earthquake in your area over the next year. If the premium is more than you would reasonably expect to lose, it is probably not worth buying.
One middle ground: buy earthquake insurance with a high deductible (20 or 25 percent) to keep the premium low, and set aside money in savings to cover that deductible if needed. This protects you against catastrophic loss while keeping your annual cost manageable.
How to get a quote and compare policies
Contact your homeowners insurance company first. Most insurers that write homeowners policies also offer earthquake insurance, and bundling it with your existing policy often qualifies you for a discount. Ask for quotes at several deductible levels so you can see how the premium changes.
If your insurer does not offer earthquake coverage or the premium is too high, get quotes from other insurers. Earthquake insurance premiums vary significantly between companies, even in the same area, so shopping around is worth the effort. Use online comparison tools or contact insurers directly.
If you are in California or another state with a state insurer of last resort, ask your agent whether you may have access to for that program. The premium may be higher than private insurance, but it is your only option if private insurers decline to cover you. In California, the CEA website allows you to check availability and get quotes online.
Frequently Asked Questions
Does my homeowners insurance cover earthquake damage?
No. Standard homeowners insurance explicitly excludes earthquake damage. You must buy a separate earthquake policy to have any coverage for seismic events. Some homeowners policies allow you to add an earthquake endorsement for personal property, but this is rare and must be requested separately.
What is the difference between earthquake insurance and earthquake coverage added to homeowners insurance?
A standalone earthquake policy covers structural damage to your home. An earthquake endorsement added to your homeowners policy typically covers only personal property (furniture, electronics, clothing) and is subject to a separate deductible. Most people who buy earthquake coverage buy the standalone policy for structural protection.
Can I get earthquake insurance if I have an older home?
Yes, but the premium will be higher than for a newer home. Older homes, especially those built before modern seismic building codes, are more expensive to insure because they are more vulnerable to earthquake damage. Some insurers may decline to cover very old or poorly maintained homes, but state insurers of last resort usually will.
What happens if I do not have earthquake insurance and an earthquake damages my home?
You pay for all repairs out of pocket. If the damage is severe, you may need to take out a loan or use savings to rebuild. Your homeowners insurance will not help. This is why earthquake insurance is important in high-risk areas — the alternative is potentially losing your home's value and having no way to recover.
Is earthquake insurance tax deductible?
No. Earthquake insurance premiums are not tax deductible for homeowners. If you own rental property, you may be able to deduct earthquake insurance as a business expense, but consult a tax professional about your specific situation.