Is Earthquake Insurance Worth It?
- Earthquake insurance may be worth it if you live in a high-risk area and can’t afford to repair or rebuild your home on your own.
- Standard homeowners insurance typically doesn’t cover earthquake damage. You’ll either need to get add-on coverage or a separate policy.
- Earthquake insurance can be expensive, though costs can vary widely by location and home type.
- Deductibles can be high, with many falling between 10% and 20% of the coverage limit.
When is earthquake insurance worth it?
Earthquake insurance may be worth getting if you live in an earthquake-prone area and wouldn’t be able to afford the recovery expenses on your own. Without coverage, repairing or rebuilding your home could mean taking on a large amount of debt.
Even though earthquake insurance can save you money in the long run, it can get expensive, and policies often have high deductibles
Pros
- Pays to repair or rebuild your home after an earthquake
- Typically covers your belongings and temporary living expenses
- Will reduce how much you need to borrow or pay from savings for earthquake repairs
Cons
- Coverage can be expensive, especially in high-risk areas
- High deductibles can mean significant out-of-pocket costs
- You may still need savings or financing to cover the deductible
Some homeowners insurance companies offer earthquake coverage as an add-on to your existing policy. If your home insurance company doesn’t offer this type of coverage, you will need to buy a separate earthquake insurance policy.
With either option, it’s smart to shop around and compare quotes to make sure you find the best rate available. If you’re not sure where to start, LendingTree’s insurance resources can help.
How much does earthquake insurance cost?
Your earthquake insurance cost depends on factors like where you live and your home’s features. If you live in an area with a high risk of earthquakes, you will likely pay a higher insurance rate than someone in a lower-risk area.
| Area | Estimated cost |
|---|---|
| California | About $1,400 a year |
| Oklahoma | $50 to $300 a year |
| East Coast | Less than 50 cents per $1,000 of coverage a year |
The key factors that determine your earthquake insurance rate include:
- Your home’s location: You will likely pay more if your home is in an area with a higher earthquake risk. Your proximity to fault lines and the type of soil beneath your home can also affect your rate.
- Your home’s age: Older homes may cost more to insure because they’re less likely to meet current seismic building standards.
- Your home’s construction style: Your home’s building materials, foundation and overall construction can affect how well it may hold up during an earthquake. The better it can withstand tremors, the lower your rate will be.
- Your roof type: Some insurers consider your roof type when calculating your earthquake insurance rate.
- The amount of coverage you choose: Higher coverage limits typically cost more.
- Your deductible: A higher deductible can lower your premium, but it also increases the amount you may have to pay after an earthquake.
Is an earthquake retrofit worth it?
Some earthquake insurers offer a discount for retrofitting an older home for earthquake safety. For example, the California Earthquake Authority offers discounts of up to 25% for qualifying older homes that have been properly retrofitted. The steps include bracing “cripple walls,” the short walls between the foundation and first floor, and bolting the home to its foundation.
The average cost of retrofitting a home is about $6,100, with most projects ranging from around $3,500 to $8,700, according to contractor marketplace Angi. An earthquake retrofit can make your home safer and reduce the potential for damage, whether you buy earthquake insurance or not.
What happens if your house is destroyed in an earthquake?
Having earthquake insurance can protect you from a massive financial hit if an earthquake destroys your home. Without earthquake insurance, you could be left figuring out how to pay for repairs or rebuilding on your own.
If you don’t have earthquake insurance, your options may include:
- Savings or other personal funds
- FEMA assistance, if the earthquake receives a federal disaster declaration and you qualify
- An SBA disaster loan or eligible HUD 203(h) loan
- Selling the damaged home at a lower price
FEMA assistance can help cover certain uninsured expenses, but it won’t replace insurance or cover all your losses. SBA disaster loans go up to $500,000 and can pay to repair or replace a primary residence, although you’ll have to repay the money.
Even with earthquake insurance, you may still need savings or financing to cover your deductible. However, the policy can reduce how much you have to pay or borrow after a major loss.
What does earthquake insurance cover?
Earthquake insurance typically covers damage to your home and belongings, as well as additional living expenses. However, the coverage and limits can vary from one policy to the next.
Dwelling
Your earthquake dwelling coverage pays to repair or rebuild your home after covered earthquake damage. You can check your coverage limit to see how much protection you’d have if you needed to rebuild.
Other structures
Other structures include sheds, detached garages, retaining walls, staircases and pavement. Some policies may offer limited coverage for these structures, while others don’t cover them at all.
Personal property
Your personal property includes your appliances, furniture, electronics, clothing and other belongings. Creating an itemized list of your possessions and their value is a good way to figure out how much personal property coverage you need.
Loss of use
Loss of use helps cover the extra living expenses you would face if an earthquake leaves your home uninhabitable. Policies usually set dollar and time limit caps on this coverage, so be sure to check your policy to see how much coverage you can get and how long it lasts.
Loss assessment
Condo owners may want to consider loss assessment coverage, too. This can help cover costs that your homeowners association (HOA) may charge to repair common areas in your building or complex.
Although homeowners insurance doesn’t cover earthquake damage, it may cover certain damage that follows. For example, if an earthquake sparks a fire or causes your pipes to burst, your home insurance will usually cover this type of indirect damage.
How do earthquake insurance deductibles work?
Earthquake insurance deductibles usually range from 10% to 20% of the coverage limit, although some policies offer deductibles as low as 5% or as high as 25%. This can make them a lot higher than your home insurance deductible.
For example, if you insure your $400,000 home with a 15% earthquake insurance deductible, you’re responsible for $60,000 in covered damage.
In this scenario:
- If an earthquake causes $70,000 in covered damage, your insurer may pay $10,000.
- If covered earthquake damage completely destroys your house, your insurer may pay up to $340,000 toward the dwelling loss, depending on your policy terms.
Some policies apply one deductible to the entire claim. Others apply separate deductibles to your dwelling, belongings and other structures. So you could have to meet more than one deductible after an earthquake depending on your coverage.
For example, your policy might not pay for home repairs that cost less than your dwelling deductible. But if the costs of fixing a covered retaining wall exceed your “other structures” deductible, you may still receive an insurance payment for those repairs.
Earthquake insurance for condo owners or renters
Condo owners and renters may also be able to buy earthquake insurance. However, the coverage works a little differently since you typically don’t own the entire building as a condo owner or renter.
- Condo earthquake insurance will cover damage inside your unit, your belongings and temporary living expenses.
- Renters earthquake insurance usually just needs to cover your belongings and the extra cost of living somewhere else if earthquake damage forces you to move out.
- Don’t assume your condo association’s master earthquake policy protects your home and belongings. These typically only cover the building’s exterior and common areas.
- If an earthquake damages your condo building, your condo association could ask unit owners to help pay for repairs. Loss assessment coverage may help cover your share.
Frequently asked questions
States don’t require homeowners to buy earthquake insurance. In California, if you have homeowners insurance, your insurance company must offer earthquake insurance every other year, but you don’t have to accept it.
The highest-risk earthquake zones in the U.S. include California, the Pacific Northwest and Alaska. Some other western states, including Nevada and Utah, also face significant earthquake risks.
East of the Rocky Mountains, the New Madrid Seismic Zone has the greatest earthquake risk. It stretches from northeastern Arkansas through parts of Missouri, Tennessee and Kentucky to southern Illinois.
Possibly. Earthquakes don’t happen as often on the East Coast as they do in the West, but the risk is still present. According to the latest U.S. Geological Survey model, nearly 75% of the U.S. could experience damaging earthquakes within the next 100 years. Consider your local risk and whether you could afford to repair or rebuild your home without insurance.
Methodology
California earthquake insurance rates are based on average 2025 premiums reported by the California Department of Insurance.
Oklahoma rates are based on estimates from the Oklahoma Insurance Department.
The East Coast estimate comes from the Insurance Information Institute and reflects a cost of less than 50 cents per $1,000 of coverage.
Your rates, conditions and terms may vary. See our editorial guidelines for more details.
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