Earthquake Insurance
Earthquake insurance is a separate policy that covers damage from earthquakes, which is not included in standard homeowners insurance. It's particularly important for homeowners in seismically active areas like California, Alaska, and Hawaii.
Definition maintained by the InsurTool Editorial Team. Last reviewed .
Key Takeaways
Earthquake insurance is a separate policy that covers damage from earthquakes, which is NOT included in standard homeowners insurance. It’s particularly important for homeowners in seismically active areas like California, Alaska, and Hawaii. Earthquake deductibles are typically 10-20% of your dwelling coverage, making it a notable out-of-pocket expense before coverage kicks in.
What is Earthquake Insurance?
In plain English: Earthquake insurance covers damage from earthquakes and earth movement. Standard home insurance doesn’t cover this, so if you live in an earthquake-prone area, you’ll need a separate policy or endorsement.
Use our Home Insurance Calculator to assess your overall home insurance needs.
Why Earthquake Insurance is Important
Earthquakes can cause catastrophic damage to homes, including structural damage, foundation issues, and damage to personal property. The cost of rebuilding after a major earthquake can be astronomical, making earthquake insurance essential for at-risk areas.
According to the USGS, there are approximately 20,000 earthquakes each year in the United States, though most are too small to feel.
What Earthquake Insurance Covers
- Dwelling Coverage — Covers damage to the physical structure of your home.
- Personal Property — Covers your belongings damaged by the earthquake.
- Loss of Use — Covers temporary housing if your home is uninhabitable.
- Code Upgrade Coverage — Covers additional costs to meet new building codes.
What Earthquake Insurance Doesn’t Cover
- Flood damage: Requires separate flood insurance
- Land movement: Damage from landslides or mudslides
- Fire damage: May be covered by standard homeowners insurance
- Wear and tear: Normal aging is not covered
Earthquake Deductibles
Understanding the Cost Structure
Earthquake insurance typically has a higher deductible than standard homeowners insurance, usually 10-20% of your dwelling coverage limit. For example, if you have $300,000 in dwelling coverage with a 15% deductible, you’d pay $45,000 before insurance kicks in.
Seismic Risk Zones
Understanding Your Risk Level
Earthquake risk varies by location. The USGS maps seismic hazard levels based on the likelihood of ground shaking:
- High risk: Areas with frequent seismic activity (California, Alaska, Hawaii)
- Moderate risk: Areas with occasional seismic activity
- Low risk: Areas with minimal seismic activity
| Coverage Type | What It Protects | Typical Limit |
|---|---|---|
| Dwelling | The physical structure of your home | Based on rebuild cost |
| Personal Property | Your belongings inside the home | 50-70% of dwelling limit |
| Liability | Lawsuits if someone gets hurt on your property | $100,000 - $500,000+ |
| Loss of Use | Hotel/food if you can’t live at home | 20-30% of dwelling limit |
| Other Structures | Detached garages, sheds, fences | ~10% of dwelling limit |
Q: Is earthquake insurance required by law?
A: No, earthquake insurance is not required by law, but many lenders in high-risk areas may require it as part of your mortgage.
Q: How much does earthquake insurance cost?
A: The cost varies based on your location, home value, and deductible. In high-risk areas like California, it can cost $800-$2,500 per year.
Q: Does earthquake insurance cover aftershocks?
A: Yes, most policies cover aftershocks that occur within a certain time period (usually 72 hours) after the main earthquake.
Q: Can I get earthquake insurance if my home is not in a high-risk area?
A: Yes, earthquake insurance is available in most areas, but rates are lower in low-risk zones.
References
- United States Geological Survey (USGS)
- Insurance Information Institute (III)
- National Association of Insurance Commissioners (NAIC)
Related Terms
Homeowners Insurance Flood Insurance Dwelling Coverage Deductible
About this definition
Written and checked against the primary sources linked on this page by the InsurTool Editorial Team. Definitions describe how these terms are used in the United States; policy wording differs between insurers, and state law changes the meaning of some terms. Your own policy document is the authority for your coverage.
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