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Thousands of earthquakes occur each year, but only a small percentage cause damage.[1] Significant earthquakes can cause major structural damage to homes, so if you live in an area prone to earthquakes, you may need extra coverage.
As with standard home insurance, HO-6 condo insurance policies don’t typically cover damage from earthquakes. Even if your condo association has a master policy, you may have gaps between your policy and the community coverage.
It can be a good idea to purchase a separate earthquake policy from a private insurer or a state insurance program, though you may have separate deductibles and endorsements.
Here’s what you need to know about condo earthquake insurance, including how it works, its cost, and where to buy it.
Each year, earthquake damage costs the U.S. approximately $14.7 billion, according to the U.S. Geological Survey and the Federal Emergency Management Agency (FEMA).[2]
Though condo owners don’t legally need to buy insurance, some mortgage lenders may require it to protect your condo from earthquakes and other damage.
Earthquake deductibles are usually 10%–20% of the policy’s coverage limit.[3]
Condo earthquake insurance is a specialized form of coverage that protects your unit and helps you pay to repair or replace items damaged in an earthquake.
As a condo owner, you may have your own HO-6 policy in addition to coverage through your condo association’s master policy. Both of these policies usually exclude earthquake damage, leaving a coverage gap. Responsibility for repairs to your condo during earth movements and other events ultimately depends on the type of coverage provided by the master policy.
It’s important to review the association’s policy and your own policy to fully understand your coverage and exclusions. In some cases, you may want to purchase a separate earthquake coverage endorsement to further protect your condo.
Unlike earthquake insurance policies for stand-alone homes, earthquake condo insurance usually provides walls-in coverage, meaning it only pays for damages that occur inside your unit. It doesn’t pay for damages to the overall building or structure, including your portion of any homeowners association (HOA) or condo association assessments.
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As a condo owner, you may need earthquake insurance if you live in an area prone to seismic events. Earthquake insurance can be a smart investment in states that experience more earthquakes than others, like California, Nevada, and Washington.
Even if your condo association has a solid master policy with earthquake insurance for the structure, you could still face significant financial challenges if an earthquake affects your unit.
Condo earthquake insurance can make sense in the following scenarios:
Older buildings: Some older buildings haven’t had updates to better handle seismic activity, but earthquake insurance can help protect your condo.
High HOA deductibles: If your condo association has a high earthquake deductible, it will pass that cost on to you and the other condo owners, but it still won’t cover your personal property and some other damages. You’ll need your own policy.
Limited savings: If you have limited emergency savings available to cover repairs or other expenses, having an earthquake policy can provide reassuring extra protection.
High-value personal property: Consider buying a policy if you own high-value items, such as expensive computers, tablets, artwork, jewelry, or upgraded interior fixtures.
Without a personal condo insurance policy, you could be on the hook for high repair and assessment costs following an earthquake.
A condo insurance policy varies by insurer and what coverage options you choose, but they typically include the following types of coverage:
Dwelling insurance covers damage to the interior structure of your condo, including walls, fixtures, and windows.
If a covered event damages your personal belongings, such as furniture or clothing, personal property insurance can pay to replace them.
If an earthquake made it impossible to live in your condo, loss of use insurance pays for your temporary housing and meals.
After an earthquake, your condo association may assess the damage to the structure, and each condo owner will have to pay for a portion of the repairs and a share of the earthquake deductible (if applicable). Loss assessment coverage can help pay your share of the costs.[4]
Here are a couple of optional coverages you can also add to a condo earthquake policy:
Building code upgrade: If local authorities require repair work following current building codes (rather than the building codes from when the structure was originally built), this insurance helps cover your share of the expenses.
Emergency repairs: If you need to make emergency repairs to prevent further damage to your unit, such as boarding up broken windows, emergency repair insurance can help cover the cost.
A condo earthquake insurance policy only protects the interior of your unit. Exactly what it will cover will depend on the policy structure. Personal condo policies are usually either “walls-in” or “all-in.”
Here’s what those two policy types mean:
Walls-in: Walls-in coverage, also known as studs-in coverage, covers the interior surfaces of your condo from the drywall in. It covers the interior walls, ceiling, floors, carpets, and personal belongings. Walls-in coverage doesn’t cover the unit structure or permanent fixtures, such as cabinets or plumbing.
All-in: An all-in policy, also known as studs-out coverage, provides insurance for the interior of your unit and for some structural elements, such as flooring, built-in appliances, and cabinets.
What exactly you’re responsible for after an earthquake depends on your HOA master policy.
If an earthquake affects your condo and your condo association has an earthquake master policy, the master policy will cover repairs to the building structure, such as its roof and grounds. That said, the deductible can be substantial, so the condo association may need to issue an assessment, requiring each condo owner to cover a portion of the cost.
Having condo insurance with loss assessment coverage can come in handy and help you pay for your portion of an expensive assessment.
You live in a building with 50 units, and your condo association has an earthquake policy with a coverage maximum of $4 million. If your building’s policy has a deductible equal to 20% of the policy coverage limit, condo unit owners will have to collectively cover up to $800,000 in damages before the policy would start covering repairs.
Spread across 50 condo owners, each owner would have to pay $16,000, on top of the cost of your unit’s interior repairs.
Condo earthquake insurance, like all forms of insurance, has key exclusions, so it’s important to read your policy carefully.
Condo insurance policies generally exclude the following:[5]
Damages to landscaping, pools, fences, or masonry
Fire damage
Damage to land, such as sinkholes or erosion
Vehicle damage
Flood damage
Damages below the policy deductible
A condo association or HOA master policy typically covers the building’s structure and common areas, including walls, roofs, hallways, elevators, and shared amenities such as a parking garage. The type of master policy your condo association has, whether a walls-in or all-in policy, typically affects the level of protection each unit receives.
But earthquake insurance from an HOA master policy is a bit different. It’ll only cover the outside of the building and any shared common areas, essentially providing walls-in coverage in the event of an earthquake. Your personal condo insurance policy with earthquake insurance can cover your personal items, liability, loss assessment, and more.[6]
Whether or not the HOA master policy has earthquake insurance, which typically comes with a high deductible, you may face high assessments following earthquake damage to the building.
Master policies can change, so it’s important to review your HOA insurance documents at least once per year to prevent unexpected coverage gaps.
Below, you can compare how earthquake insurance under an HOA master policy and a personal condo insurance policy cover the main components of the condo unit.
Condo Unit Component  | HOA Master Policy | Personal Condo Insurance |
|---|---|---|
| Exterior structure (ceiling, floor, walls) | ✔ | ✗ |
| Interior structure (built-in cabinets and appliances, plumbing, wiring, bathroom fixtures) | ✗ | ✔ (If policy includes building property coverage) |
| Contents (clothing, furniture, electronics, appliances) | ✗ | ✔ |
Condo insurance premiums vary based on several factors, including location and seismic zone, building age and type of construction, coverage limits, and deductible percentage.
Insurify doesn’t have internal condo earthquake insurance costs data, so we requested a quote through the California Earthquake Authority (CEA) with the following coverages:
$100,000 building property limit with a 15% deductible
$25,000 personal property coverage with a 15% deductible
$25,000 in loss of use insurance
$50,000 in loss assessment coverage with a 15% deductible
The estimated cost of earthquake insurance from the CEA based on the provided information was $939 per year, or about $78 per month.
Deductibles for condo earthquake policies are typically 5%–25% of your unit’s coverage limit. If you have a condo unit with $100,000 in coverage and a 20% deductible, you’ll have to pay for $20,000 of the repair costs before your insurer will help with any remaining expenses following covered damages.
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A standard condo insurance policy doesn’t include earthquake insurance, so you’ll need to follow these steps to purchase earthquake coverage:
Review your HOA master policy. Policy coverages and exclusions can vary, so read your HOA’s master policy and pay particular attention to whether the HOA is responsible for fixtures and to the size of the earthquake deductible.
Ask about endorsements. If you have a condo insurance policy, ask your insurance agent or insurer customer support if it offers earthquake coverage as an endorsement. If it doesn’t, you’ll need to buy a stand-alone earthquake policy.
Compare options. You may purchase coverage through state-affiliated organizations or private insurers. Request quotes from several condo insurance companies to compare coverages and costs.
Choose coverage limits and deductibles. Balance premium affordability with realistic repair costs. You may even want to pay a little more in premiums to have a lower deductible so you won’t have to scramble to pay a high deductible in an emergency.
Review your policy at least once per year and adjust your coverage if your condo’s value changes, you update the fixtures in your home, or the HOA changes the master policy. That way, you’ll have proper protection in the event of an earthquake.
If you’re debating whether or not you need condo earthquake insurance, the following information can help you make an informed decision.
A typical condo insurance policy doesn’t cover earthquake damage unless you purchase an earthquake rider or a separate earthquake insurance policy.
HOA earthquake insurance coverage usually only applies to the structure of the building, such as the exterior walls and roof. It doesn’t cover the inside of your unit, so you’re responsible for the cost of repairing interior walls, fixtures, and personal property.
If an earthquake occurs and your condo association has an earthquake master policy, the master policy would cover repairs to the building and common areas. A condo association may issue an assessment to all building owners to cover the deductible, but condo owners need personal earthquake insurance policies to cover any damage to their units’ interiors.
Whether earthquake insurance is worth the expense depends on your location, condo value, and your personal property. For homeowners in high-risk areas, purchasing coverage can be a good decision.
Renters insurance doesn’t cover damages related to earthquakes, so you’ll need a separate renters earthquake insurance policy to protect your belongings.
No. The state of California doesn’t require condos to have earthquake insurance, but your condo mortgage lender may require it.
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
Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.
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9+ years in personal finance writing
Certified Financial Counselor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
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