8+ years writing about insurance, taxes, and personal finance
Certified public accountant
Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Save up to $852 by comparing quotes from the top 100+ insurance companies
Excellent
Secure. Free. Easy-to-use.
Advertiser Disclosure
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Earthquake insurance helps property owners recover from losses due to earthquake damage. This coverage provides essential financial protection for condominium owners in California, Alaska, and other areas prone to seismic activity.[1]
Here’s what you need to know about condo earthquake insurance.
Quick Facts
Condo earthquake insurance covers structural damage to your unit and personal property caused by an earthquake.
The cost of earthquake insurance depends on your location, building structure, building age, and policy deductible.
This coverage can be expensive, but shopping around and bundling policies can help bring your rates down.
Find Cheap Home Insurance Near You
Check quotes from 100+ top insurance companies
Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
What is condo earthquake insurance?
Condo earthquake insurance is a special policy that covers damage to your condominium unit caused by an earthquake. It can help pay to repair, rebuild, and replace personal belongings after a seismic event.[2]
Like standard condominium insurance, a condo earthquake policy covers damage to your unit as defined by the condominium owner’s association (COA) governing documents. For example, your COA might cover everything outside your unit, including the roof, windows, and common areas.[3]
But a standard condo policy (HO-6) excludes coverage for “earth movement,” which is the insurance industry’s term for earthquakes. Buying a separate condo earthquake policy in addition to your standard condo insurance addresses the unique risks associated with earthquakes.
Shop for Condo Insurance
Insurify partners with 100+ insurers for real quotes
Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
What does condo earthquake insurance cover?
Condo earthquake insurance provides several essential coverages for property damage and other expenses you might face after an earthquake.
Structural damage: The policy covers repairs to the structural components of your condo unit based on your COA’s governing documents. For example, it can cover damage to internal fixtures like plumbing, electrical systems, and built-in appliances if you’re responsible for them. The association’s master policy should cover the building’s exterior and common areas, while your policy protects your unit.
Personal property: Earthquake insurance also extends to your personal belongings within the unit, including furniture, electronics, clothing, and other personal items that an earthquake might damage or destroy.
Additional living expenses: If earthquake damage makes your condo uninhabitable, this coverage pays the cost of living elsewhere during the repair process.
Additional assessments: If an earthquake damages the condo building and common areas, your condo association may require unit owners to share repair costs or pay part of the association’s insurance deductible through an assessment. Some condo earthquake policies provide coverage for the policyholder’s share of the assessment, although you may have to pay an additional premium.
Condo earthquake policies don’t cover damage from events unrelated to earthquakes, like floods, fires, other natural disasters, or vandalism. They also don’t cover pre-existing damage. This means if your condo had structural problems before the earthquake, the insurance company won’t cover those repairs.[4]
Earthquake insurance also typically excludes costs associated with bringing your property up to current building codes during reconstruction unless you purchase add-on coverage for building code upgrades.
How to choose the right condo earthquake insurance policy
Here are a few tips for choosing the right condo earthquake insurance for your needs:
Assess your risk. Start by evaluating whether earthquakes are a risk in your area. You can look up your address using the U.S. Seismic Design Maps or research local earthquake history to understand the likelihood of an earthquake causing damage to your unit and contents. If you live in a low-risk area, the cost of earthquake coverage might outweigh the potential benefits.
Consider your coverage needs. Review your condominium association agreement to determine where your responsibility ends and the association’s begins. You should also consider the value of your personal property. This will help you choose the right coverage limits for structural damage and your personal belongings.
Compare policies. Get quotes from multiple insurance companies and compare coverage options, limits, deductibles, and premiums.
Understand the policy terms. Pay attention to specific terms and conditions, as they vary from policy to policy. Make sure you understand what your policy does and doesn’t cover to avoid surprises later.
Check the company’s financial stability and reputation. Research the insurance company’s financial strength with AM Best and read customer reviews on sites like Trustpilot. Reliable insurance companies with good track records of customer satisfaction are more likely to provide dependable support when you need to file a claim.
Factors affecting the cost of earthquake insurance for condos
According to an Insurance Information Institute survey from 2020, only 23% of homeowners with insurance have earthquake coverage, often because it’s prohibitively expensive in areas with the highest risk.[5] The following factors influence the cost and coverage of condo earthquake insurance.
Location and seismic activity
Areas with high seismic activity, such as places near fault lines or with a history of frequent earthquakes, typically have higher premiums.
Building structure and construction materials
Buildings constructed with earthquake-resistant materials and designs, like reinforced concrete or steel frames, generally qualify for lower rates. Older buildings with less resistant construction are more susceptible to damage, which increases the cost of insurance.
Age and condition of the condo
Older homes may have outdated construction methods and materials, making them more vulnerable to earthquake damage. But if you maintain your condo well — or if you recently renovated it to meet modern building codes — you may earn lower costs due to a reduced risk of severe damage.
Deductibles and premiums
Your deductible is the amount you pay out of pocket before your insurance coverage kicks in after a claim. Deductibles on earthquake policies are usually a percentage — 10% or 20% of the coverage limit — rather than a flat dollar amount. Choosing a higher deductible can lower your premiums, but it means you’ll bear more of the cost in the event of a claim.
5 ways to reduce earthquake insurance premiums
Here are five ways to reduce the cost of your earthquake insurance:
Retrofit the building. Encourage your condo association to invest in retrofitting the building to meet modern seismic standards. This might include reinforcing the structure by adding shear walls or bolting the building to its foundation.
Bundle policies. Try bundling earthquake coverage with other policies, like your homeowners or auto insurance. Many insurance companies offer discounts when you buy more than one policy from them.
Choose a higher deductible. Opt for a higher deductible to lower your premium. Just make sure you can afford to cover the deductible if you need to file a claim.
Maintain good credit. In some states, insurance companies can consider credit history when determining insurance premiums. People with good credit tend to file fewer claims, so maintaining good credit can help lower your insurance costs.
Take detailed photos and videos of all damaged areas and items. Keep an inventory of all personal property affected, including descriptions, estimates, and receipts, if available.
2. Notify your insurance company
Contact your insurance company as soon as possible to report the damage and kick off the claims process.
3. Fill out necessary claim forms
Complete all necessary claim forms provided by your insurance company and attach all supporting documentation.
4. Work with your adjuster
Your insurance company will assign an adjuster to assess the damage. Cooperate fully and provide any additional information they request. Join them on the inspection to ensure they note all damage.
5. Get repair estimates
Get a few repair estimates from licensed contractors. Submit the best estimate to your insurance company for approval. Your insurance company may pay the contractor directly or send you a check to pay for the repairs.
Condo earthquake insurance FAQs
The following information can help answer your remaining questions about finding affordable condo earthquake insurance.
What is the average cost of earthquake insurance?
In the United States, the average cost of earthquake insurance ranges anywhere between $800 and $5,000 per year. But rates vary depending on location, building structure, building age, and the amount of coverage you need. You may pay more if you live in a high-risk area.
California residents can get a more accurate premium estimate using the California Earthquake Authority (CEA) Premium Calculator.
Should you get earthquake insurance for a condo?
If you live in an earthquake-prone area, getting earthquake insurance on your condo protects you financially if an earthquake damages or destroys your unit and personal belongings. Standard condo insurance and renters insurance policies don’t cover earthquake damage, so you need to get an earthquake endorsement or buy a separate earthquake policy.
What happens if an earthquake destroys your condo?
If a major earthquake destroys your condo, earthquake insurance helps cover the cost of rebuilding or repairing your unit, replacing your personal belongings, and providing temporary housing during the restoration process.
Is condo earthquake insurance mandatory?
No. Federal and state law don’t require condo earthquake insurance. But experts recommend it for condos in high-risk areas because it protects against heavy financial losses if an earthquake damages or destroys your condo and belongings.
Janet Berry-Johnson, CPA is a freelance writer with a background in accounting and income tax planning and preparation. She's passionate about making complicated financial topics accessible to readers. She lives in Omaha, Nebraska with her husband and son and their rescue dog, Dexter. Visit her website at www.jberryjohnson.com.
Edited byKatie PowersAuto and Life Insurance Editor
Katie PowersAuto and Life Insurance Editor
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
)
)
){kind=logo}
){kind=logo}
){kind=logo}
){kind=small}
)
)
){kind=small}
){kind=small}
)
)
)
)
)
)
)
)