Earthquake Insurance: A Complete Guide for Homeowners (2023)

About half of all Americans are exposed to the risks of earthquakes, according to U.S. Geological Survey data. Earthquakes can be powerful enough to collapse entire buildings, disrupt utility services, and even trigger flash floods, fires, tsunamis, and more.^[1]

Yet standard homeowners policies won’t cover damage from natural disasters like earthquakes. If you live in an earthquake-prone area, you should consider earthquake insurance to protect your home and belongings. And, because earthquake insurance can be expensive, it’s important to compare quotes to find the best deal you can.

What is earthquake insurance?

Earthquake insurance pays to repair or replace your property after it’s been damaged or destroyed in an earthquake. You may buy earthquake coverage from private insurance companies either as a separate plan or as an endorsement to your homeowners insurance policy.

If an earthquake damages your home or belongings, you can file a claim with this coverage. You may need to pay a deductible, which is the out-of-pocket cost you’ll pay before coverage kicks in.

Depending on what’s included, your policy may also pay for temporary housing if the earthquake damage to your home forces you to relocate. If the earthquake sparks a fire or causes water damage to your home, then earthquake insurance won’t cover it. Instead, your regular home insurance policy should cover the fire damage, and flood insurance would cover water damage.

Compare Home Insurance Quotes

Enter your ZIP codeGet My Quotes

Secure. Free. Easy-to-use.

Based on 3,806+ reviews

4.8/5

What does earthquake insurance cover?

An earthquake insurance policy covers damage that results from seismic activity, which is usually defined as “shaking or trembling of the earth, caused by volcanic activity, tectonic processes, or any other cause,” according to the Nevada Division of Insurance. Depending on the policy, you may also be covered for events directly related to earthquakes, such as landslides.

Earthquake policies usually consist of three parts:^[2]

Dwelling coverage

Pays to repair or rebuild your home and attached structures

Personal property coverage

Pays to replace your damaged belongings, such as furniture and electronics

Loss-of-use coverage

Pays for temporary lodging expenses, such as a hotel, while your home is being repaired

Each type of coverage comes with a policy limit, which is the highest amount your insurer will pay for a covered claim.

Some insurance companies offer riders you can add to earthquake insurance. If your policy doesn’t feature the coverage you need, ask your insurer about adding it to your plan. Additional coverage can include upgrade replacements, repairs to your land, and emergency repairs for aftershock protection.

What does earthquake insurance exclude?

Earthquake insurance may exclude certain items or materials. And, if the earthquake causes another type of disaster, another type of insurance will typically cover it. For example: Homeowners insurance usually covers damage from a fire, while flood insurance covers water damage.

Here’s a list of what’s usually excluded in earthquake insurance policies:

How much does earthquake insurance cost?

Earthquake insurance premiums may cost anywhere from $0.50 to $15 per $1,000 of coverage.^[1] On a $200,000 home, for example, the price of an earthquake insurance policy may range anywhere from $100 to $3,000.

When setting rates, insurance companies usually take the following factors into account:

• Your home’s location: Homeowners in earthquake-prone areas generally pay more for earthquake insurance.

• The age of your home: Premiums are typically higher on older homes because they’re usually more prone to damage and may not comply with current building standards.

• The construction of your home: Homes built with wood frames are cheaper to insure than brick buildings because they better withstand quake stresses. Large homes constructed with expensive materials cost more to insure because they’re costlier to rebuild.

• The cost to rebuild your home: When setting your policy limits, you can choose between replacement cost and actual cash value. Replacement cost is more expensive because the policy pays to rebuild or repair your home using materials of similar kind and quality.

• The deductible: Choosing a larger deductible can help you save money on premiums, though you’ll be responsible for covering more of the loss.

What to know about earthquake insurance deductibles

Deductibles on earthquake insurance are usually calculated as a percentage of your coverage limit rather than a dollar amount. The percentage usually ranges from 2% to 20%.^[3] If your home is insured for $200,000, and your deductible is 5% of your home’s replacement value, the insurer would deduct $10,000 from your claim payment.

In states with a higher-than-average risk of earthquakes, such as Washington, Nevada, and Utah, insurance companies often set minimum deductibles at around 10%.^[1]

For coverage and deductible purposes, policies also specify the time frame of a single event. For instance, aftershocks that happen within 72 hours of the earthquake are usually considered one occurrence. So, if you need to file a claim against your earthquake coverage, you pay your deductible only once for damage that occurs within this time frame.

The best earthquake insurance companies

Insurify researched dozens of insurance providers to come up with a list of the best earthquake insurance companies. Here are some of the companies that came out on top:

Allstate

Allstate is a well-known company that offers various insurance policies in all 50 states and Washington, D.C. It provides earthquake insurance in select regions throughout the U.S., including California.

American Family Insurance

American Family Insurance is a national insurance provider that allows customers to save money on their earthquake insurance premiums by taking advantage of a long list of discounts.

Amica Mutual Insurance

Amica Mutual Insurance allows customers to add earthquake coverage as an endorsement to a standard homeowners insurance policy.

Nationwide

A typical earthquake insurance policy from Nationwide covers damage to your home, other structures on your property, personal belongings, and loss of use.

Liberty Mutual

With Liberty Mutual, you can buy and manage a policy and submit a claim all online. The company even offers earthquake insurance for renters.

Methodology

Insurify’s team of data scientists analyze millions of home insurance quotes and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.

Should you buy earthquake insurance?

Like homeowners insurance, no state requires you to have earthquake insurance.

Whether you should buy coverage depends largely on the following factors:^[4]

• Your proximity to fault lines

• Frequency of earthquakes in your region

• How long it’s been since an earthquake hit your region

• Your home’s structure, layout, building materials, and quality of construction

• Local conditions, such as type of soil, slope of the land, annual rainfall, and nearby bodies of water

• Value of your property and its contents

• Cost of an insurance policy for your home

Across the U.S., residents in 42 states have a reasonable chance of experiencing a damaging earthquake. The nine states at highest risk of earthquakes are:

• Alaska

• California

• Hawaii

• Idaho

• Montana

• Oklahoma

• Oregon

• Texas

• Washington

The risk of earthquakes is lowest in:

• Florida

• Iowa

• Kansas

• Louisiana

• Michigan

• Minnesota

• North Dakota

• Wisconsin

Compare Home Insurance Quotes

Enter your ZIP codeGet My Quotes

Secure. Free. Easy-to-use.

Based on 3,806+ reviews

4.8/5

Pros of earthquake insurance

The biggest benefits of earthquake insurance include:

• Financial coverage: Your home and belongings are covered if they’re damaged in an earthquake, and your temporary housing is paid for while your home is being repaired or rebuilt.

• Potentially low cost: If you live in a low-risk area, you may pay less for earthquake insurance. You may also raise your deductible to reduce your premium payments.

Cons of earthquake insurance

Two main drawbacks of earthquake insurance are:

• High rates in some areas: Those who live in high-risk areas may pay high premiums for earthquake coverage.

• May not cover some damage: Most homes experience damage that doesn’t exceed the cost of the deductible. Insured homeowners may not receive money from their policy to address the damage in this case.^[6]

How to buy earthquake insurance

Unlike flood insurance, earthquake insurance isn’t available through the federal government. But you can buy earthquake coverage on the private market.

Every insurer has a different way of setting rates, so you might find different prices at two different companies — even for the same coverage options. That’s why it’s so important to compare earthquake insurance policies to find the best deal available to you.

Here are the basic steps you can take to buy earthquake insurance:

1. Estimate the coverage you’ll need. Find out how much it would cost to rebuild your entire home and replace the belongings inside of it. You can set up a home inventory to keep track of these details.

2. Compare insurance companies. Start by looking for insurers that offer earthquake policies in your area. Check each company’s premium costs, deductibles, discounts, policy limits, and special offerings.

3. Gather details about the home you’re insuring. The insurance company will need to know your address, the age of the home, the age of the roof, and any protective devices installed. It may also ask about your own claim history.

4. Get quotes. You can either call individual insurance companies, visit their websites, or use a comparison tool to gather and compare quotes.

5. Buy a policy. Once you’ve chosen an insurance provider that offers the coverage you need at an affordable price, you’ll fill out the application and choose your payment method.

Compare Home Insurance Quotes

Enter your ZIP codeGet My Quotes

Secure. Free. Easy-to-use.

Based on 3,806+ reviews

4.8/5

How to file an earthquake insurance claim

If an earthquake causes damage to your property, here are the basic steps you can take to file a claim:

• Document the damage. Take photos and videos of the damage and keep copies of any receipts for reimbursement. Make a list of damaged, stolen, or destroyed items with their approximate values.

• Make emergency repairs, if possible. Making the home habitable can keep you safe and help prevent further damage.

• Call your insurance agent. The insurance company will send a claims adjuster to inspect your home for structural and cosmetic damage and estimate the cost of fixing it.

What to do if an insurer denies your earthquake insurance claim

If you think your insurer has wrongfully denied your earthquake insurance claim or offered a low payout, you still have options.

• Gather evidence. Collect any photos, videos, repair estimates, and receipts that show the extent of damage to your property and the cost of repairs. Based on this information, you can also estimate what you consider a fair payout.

• Contact the insurance company. Ask if another claims adjuster can examine the damage and review your evidence. You may need to fill out a dispute form and follow steps provided by the insurer.

• Get a third-party appraisal. A private appraiser can provide a second professional opinion of the damage. This will either confirm your insurance company’s original estimate or provide leverage in your argument for raising it.

• File a complaint and hire an attorney. If you’re still unsuccessful in getting a higher payout, you may decide to file a complaint with the state and get legal help from an attorney.

Earthquake insurance FAQs