Catastrophe Insurance for Homeowners
Standard home insurance policies exclude some major disasters, like floods and earthquakes, but catastrophe insurance can fill the gaps.
Secure. Free. Easy-to-use.
Excellent
)
Written byElizabeth Rivelli
)
Elizabeth RivelliFreelance Insurance Writer
5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
Featured in
){kind=small}
){kind=logo}
){kind=small}
)
Edited bySara Getman
)
Sara GetmanAssociate Editor
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves yoga and knitting.
Updated
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.
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.
Table of contents
Catastrophe insurance covers rare, high-cost events that can damage your property. This type of insurance covers natural and man-made disasters that standard home insurance policies typically exclude.
While home insurance covers common losses, like windstorms, it doesn’t usually cover rare, large-scale events, like earthquakes, which can leave you financially exposed.[1] Catastrophe insurance offers more complete protection for total loss events, not just minor home repairs.
Here’s what you need to know about different types of catastrophe insurance, average premiums, and how you can purchase a catastrophe coverage policy.
Quick Facts
Catastrophe insurance premiums depend on the type of coverage, location, and coverage limits.
This type of insurance is most beneficial in areas where costly disasters are likely, such as FEMA flood zones.
Catastrophe insurance doesn’t cover damage from hail, lightning, or vandalism.
What is catastrophe insurance for homeowners?
Catastrophe insurance for homeowners is a category of stand-alone insurance policies or add-ons, rather than a single insurance product. It differs from hazard insurance, which is included in standard home insurance and covers the structure of your home from fire and wind damage, but usually excludes damage from earthquakes and flooding.
Catastrophe insurance exists because it would be too expensive for insurance companies to cover major risks under a standard home insurance policy.[1] It would likely cause major financial losses for insurers, which could affect their ability to pay claims.
Not everyone needs catastrophe insurance. But if you live in a high-risk state, like California, Texas, Louisiana, or Florida, catastrophe insurance is critical. Without it, you probably won’t be covered for costly events that could seriously damage or destroy your home.
Find Cheap Home Insurance
Check quotes from 120+ top insurance companies
Excellent
4.7 out of 5 based on 13,498 reviews
Secure. Free. Easy-to-use.
Common types of catastrophe home insurance
Comprehensive catastrophe insurance includes many different policies. These policies cover perils that are usually excluded from standard homeowners insurance. Some are stand-alone insurance policies, while others are available as add-ons to your home insurance.
Type of Insurance  | What It Covers | Stand-Alone or Add-On |
|---|---|---|
| Flood insurance | Heavy rainfall, river overflows, tsunamis, typhoons, and storm surges | Stand-alone |
| Earthquake insurance | Direct damage from earthquakes | Stand-alone and add-on |
| Landslide insurance | Landslides, mudslides, and mudflow | Stand-alone |
| Hurricane insurance | Hurricane-force winds and flooding | Stand-alone |
| Tornado insurance | Tornadoes, derechos, and downbursts/microbursts | Add-on |
| Volcano insurance | Explosions and eruptions | Add-on |
| Man-made disaster insurance | Terrorism, nuclear disasters, and chemical warfare | Stand-alone |
What does catastrophe insurance cover?
Catastrophe insurance covers a variety of perils that standard home insurance policies usually exclude. This type of insurance can cover the following events:[2]
Floods
Earthquakes
Landslides
Mudslides
Sinkholes
Hurricanes
Tornadoes
Nuclear incidents
Wars
Catastrophe insurance focuses on protecting the structure of your house and foundation. If a covered peril damages or destroys your home or the foundation, catastrophe insurance would pay for the repairs, up to your policy’s limit.
Although catastrophe insurance can cover personal property and loss of use, it’s often limited. For example, flood insurance through the National Flood Insurance Program (NFIP) has coverage limitations for flood-damaged belongings in a basement.[3]
What does catastrophe insurance exclude?
Catastrophe insurance doesn’t cover every disaster. These are some common exclusions for catastrophe insurance:
Wildfires
Hailstorms
Lightning
Smoke damage
Snow and ice
Vandalism
Theft
Medical payments
Liability
Vehicle damage
Standard home insurance covers many of these perils.
Cost of catastrophe insurance for homeowners
The cost of catastrophe coverage for homeowners depends on a variety of factors, like the type of coverage, your location, your home’s characteristics, and your coverage limits.[4] The table below shows average rates for several types of catastrophe insurance.
Type of Coverage | Average Annual Premium |
|---|---|
| Flood insurance | $786 |
| Earthquake insurance | $800 |
| Windstorm insurance | $2,480 |
| Hurricane insurance | $3,300 |
If you’re thinking about purchasing catastrophe insurance, keep in mind that the cost would be in addition to your homeowners insurance premium. The average U.S. homeowner pays $216 per month for a standard $300,000 home insurance policy, according to Insurify data.
Do you need catastrophe insurance?
Catastrophe insurance is required for some homeowners and optional for others. It comes down to two main factors: where you live and your mortgage lender’s requirements.
If you live somewhere that’s prone to high-cost disasters, catastrophe insurance can be a good investment. For example, if your home is near the San Andreas Fault in California, earthquake insurance is probably beneficial. But lenders don’t normally require earthquake insurance, so you’ll have to decide whether the risk is great enough to justify the expense.
On the other hand, if you live on the Gulf Coast of Texas, it’s likely that your mortgage lender will require flood insurance. Mortgage lenders typically require flood insurance for homes located in FEMA flood zones. And if your loan is federally backed, flood insurance is always required.[5]
Find the Best Home Insurance for You
See personalized quotes from top home insurers in minutes
Excellent
4.7 out of 5 based on 13,498 reviews
Secure. Free. Easy-to-use.
How to buy catastrophe insurance
Purchasing catastrophe insurance is more complex than getting car insurance or renters insurance online. You might need to purchase multiple policies to get complete protection for your home or business.
If you’re buying catastrophe insurance, it’s important to avoid underinsurance from high deductibles, especially with earthquake coverage. An earthquake insurance deductible is roughly 10%–25% of the policy limit, and it only covers damages that exceed the deductible.[6]
Choosing a high deductible can reduce your premium, but after a costly disaster, you could face very high out-of-pocket costs. Instead, look for ways to get mitigation discounts, like installing flood barriers, to lower your costs.
Here are some general steps you should follow to purchase catastrophe insurance:
Check your homeowners policy for exclusions. Review your home insurance policy to identify coverage gaps, and choose the catastrophe insurance policies most applicable to your situation.
Assess your specific risk. Consider the unique risks your home faces and determine how much coverage is necessary for complete protection based on your home’s replacement value.
Understand waiting periods. Some catastrophe insurance policies have waiting periods before you can file claims. For example, NFIP policies have a 30-day waiting period.
Contact a specialized insurance agent. It can be helpful to work with a specialized insurance agent who can assess your situation and recommend policies to fill the gaps in your standard home insurance.
Purchase your policies. To bind your coverage, you’ll need to pay at least the first month’s premium up front. Make sure to store your policy documents in a safe place in case you need to file a claim after a disaster.
Catastrophe insurance FAQs
If your standard home insurance policy has coverage gaps, catastrophe insurance can provide more financial protection. Here’s some more information about catastrophe insurance that can help you decide whether this type of insurance is right for you.
What does catastrophe insurance cover?
Catastrophe insurance covers unlikely, but potentially costly events that can damage or destroy the structure of your home and foundation. It can cover disasters like floods, earthquakes, war, and landslides, which standard home insurance policies usually exclude.
What’s the catastrophe limit in home insurance?
Home insurance companies consider an event to be a “catastrophe” if the insured damages exceed $25 million. If a catastrophe affects your home, your standard home insurance may not cover it.
How does catastrophe insurance differ from standard home insurance?
Catastrophe insurance covers disasters that standard home insurance policies typically don’t, like floods and earthquakes. It provides financial protection for specific perils that are rare but have the potential to cause significant structural damage or a total loss.
What’s the 80% rule in homeowners insurance?
The 80% rule in home insurance states that your dwelling insurance coverage limit should be at least 80% of your home’s replacement value. If the property is insured for less than 80% of the replacement value, your insurer may not cover the full cost of a claim.
How much does catastrophe insurance cost?
The cost of catastrophe insurance depends on many factors. Things like the type of insurance, your geographic location, and the coverage limit can affect the affordability of your coverage.
Can you bundle catastrophe insurance with home insurance?
You might be able to bundle certain types of catastrophe insurance with your home insurance, but it depends on your insurer. For example, some insurance companies may offer a bundle with homeowners insurance and earthquake insurance for a small discount.
Does catastrophe insurance cover total loss only?
No, catastrophe insurance doesn’t only cover total losses. These policies can also cover partial losses where the structure of your home needs to be repaired, not completely rebuilt.
Is catastrophe insurance worth it if you can’t rebuild?
Catastrophe insurance can still be worth it if you can’t or don’t want to rebuild after a total loss. It can help cover debris removal, the replacement of personal belongings, additional living expenses, and other costs you might have, even if you don’t rebuild.
Methodology
Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Default Coverage Assumptions
- Dwelling coverage: $300,000
- Deductible: $1,000
- Personal property limit: $25,000
- Liability limit: $300,000
Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.
Related articles
)
Flood Insurance: What It Covers and Costs
January 26, 2026
)
What Is FAIR Plan Homeowners Insurance?
July 21, 2025
)
Earthquake Insurance: A Complete Guide for Homeowners
April 14, 2026
)
Homeowners Insurance Canceled Because of the Roof? What’s Next
June 26, 2024
)
What to Do If Your Home Insurance Claim Is Denied
October 15, 2024
Flood Zone X: What You Need to Know
January 19, 2026
)
What Happens If You Can’t Get Home Insurance?
March 14, 2024
)
High-Risk Homeowners Insurance: Best Options and Last Resorts
April 14, 2026
Sources
- III. "Spotlight on: Catastrophes - Insurance issues."
- III. "Which disasters are covered by homeowners insurance?."
- FEMA Fact Sheet. "What Does Flood Insurance Cover in a Basement?."
- Department of Financial Services. "Homeowners Insurance: Understanding What Affects the Cost of Insurance."
- National Flood Insurance Program. "Eligibility."
- Office of the Insurance Commissioner. "Earthquake insurance."
)
Elizabeth RivelliFreelance Insurance Writer
5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
Featured in
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
Sara GetmanAssociate Editor
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves yoga and knitting.