In this guide
Standard homeowners insurance does not cover damage from earthquakes. To be protected, you generally have to add an endorsement to your policy or buy a separate earthquake policy. It is not cheap or simple: deductibles are usually a percentage of the coverage limit, often 10% to 20%, so the decision comes down to your location, your home, and how much loss you could absorb on your own.
Key takeaways
- The NAIC says homeowners and business policies do not cover earthquake damage. Coverage is a separate product.
- Earthquake deductibles are percentages of the limit, typically 10%–20% according to the NAIC, and can be much higher than standard deductibles.
- Earthquake policies generally cover direct shaking damage. Fire after a quake is usually handled by your regular homeowners policy.
- Risk is not limited to California. The USGS maps show earthquake hazard in many parts of the country.
- Whether it is worthwhile depends on risk, home type, deductible and budget. Talk to a licensed agent or your state insurance department.
What earthquake insurance is
Earthquake insurance pays to repair or rebuild your home, replace belongings and sometimes cover living expenses after damage from shaking and related ground movement. It exists because insurers exclude earth movement from standard policies. The exclusion often also lists landslides and similar ground movement, so read the wording in your own policy.
In most states, you can buy an endorsement from your homeowners insurer or a stand-alone policy from a separate company. In California, many residential earthquake policies come from the California Earthquake Authority (CEA), a publicly managed, privately funded insurer that sells through participating home insurers. Other states and insurers have their own offerings.
What is covered and what is not
The NAIC explains that earthquake policies generally cover direct shaking damage, while indirect damage, such as fire or burst-pipe water damage that follows a quake, falls under your homeowners policy. That is why you should keep a homeowners policy even if you buy earthquake coverage.
| Type of loss | Usually handled by |
|---|---|
| Cracked foundation or collapsed chimney from shaking | Earthquake policy or endorsement |
| Fire that starts after a quake | Homeowners policy (fire is a covered peril) |
| Water from pipes broken by shaking | Homeowners policy, per NAIC guidance |
| Flooding from a tsunami or a broken dam | Flood insurance, not either policy (see our flood guide) |
| Living expenses if the home is unlivable | Depends on the earthquake policy; limits vary |
Earthquake policies often cover the dwelling, belongings and loss of use, but options vary. Exclusions and special limits apply, and some policies do not cover outdoor structures such as fences, pools or patios, or have separate rules for them. Always read the sample policy before buying.
How earthquake deductibles work
The deductible is the biggest surprise for most buyers. Instead of a flat $1,000 or $2,500, it is a percentage of the coverage limit. The NAIC says earthquake deductibles are usually 10% to 20% of the coverage limit. On a home insured for $200,000, a 10% deductible is $20,000, and a 15% deductible is $30,000. Some policies apply separate deductibles to the home, belongings and outbuildings.
The CEA says its dwelling deductible options range from 5% to 25% of the dwelling limit, but the 5% and 10% options are not available in every situation, for example for dwelling limits over $1,000,000, or for older frame homes that are not on a slab foundation and lack a verified retrofit. Its standard policy includes belongings under the dwelling deductible, and it says there is no deductible for loss of use.
Good to know: The NAIC says earthquakes in a 72-hour period are typically treated as one event with one deductible, while aftershocks after that window may start a new claim. Ask how your policy defines an "occurrence."
Because the deductible is so high, a moderate quake can cause real damage that falls below the deductible and pays nothing. That is why many experts describe earthquake insurance as protection against a catastrophic loss rather than minor repairs. The NAIC also notes that the deductible is an uninsured loss, though federal disaster loans may help in some declared disasters.
Who should think about it
The question is not just "do I live in California?" The U.S. Geological Survey publishes national seismic hazard maps showing that meaningful shaking potential exists in many regions, including the Pacific Northwest, parts of the Mountain West, the central U.S. and areas of the East and Alaska. Consider these factors:
- Location: proximity to active faults and local soil conditions that can amplify shaking.
- Home age and construction: older unreinforced masonry or "cripple wall" frame homes can be more vulnerable. Retrofits may matter for both safety and policy terms.
- Financial cushion: could you cover a deductible of tens of thousands of dollars and months of repairs?
- Mortgage: lenders usually do not require earthquake insurance, but you still owe the loan if the house is damaged.
- Other protection: if you have a mortgage, a destroyed home does not eliminate the debt.
For some owners, the right answer is to buy coverage. For others, it is to build savings and reduce risk through retrofitting. This is a personal decision, and a licensed agent can walk through your situation.
Ways to reduce earthquake risk and possibly cost
- Seismic retrofit: bolting a house to its foundation and bracing cripple walls are common examples. Some programs and policies recognize verified retrofits, as the CEA's deductible rules show.
- Secure heavy items: anchor water heaters, bookcases and appliances.
- Know the shutoffs: learn how to turn off gas, water and power after a quake.
- Document your belongings: a home inventory speeds up any claim.
Rates depend on location, the home's age and construction, the deductible you pick, and the limits you choose. There is no way to say what you would pay without quotes, so comparing options from several insurers can help you see the tradeoffs between premium and deductible.
Questions to ask before you buy
- What is the deductible, in dollars, for the home, belongings and other structures?
- What are the limits for dwelling, belongings and living expenses?
- Does the policy include coverage for building code upgrades, and what is the limit?
- What happens to my homeowners coverage if the insurer renews or changes?
- Are there waiting periods, or restrictions after a recent quake?
- What is excluded, such as outbuildings, pools, landscaping or land?
Ask for the sample policy and read it. For a fuller picture of what your regular policy includes, see our homeowners insurance guide, and for building-cost issues, see how much homeowners insurance you need.
Frequently asked questions
Does homeowners insurance cover earthquakes?
No. The NAIC says homeowners policies do not cover earthquake damage. You need an endorsement or a separate earthquake policy.
Is fire after an earthquake covered?
Typically yes, under your homeowners policy, because fire is a covered peril. Earthquake policies generally cover direct shaking damage.
Why are earthquake deductibles so high?
Insurers set them as a percentage of the coverage limit because a single quake can damage many homes at once. The result is that deductibles are often 10% to 20% of the limit, far higher than usual homeowners deductibles.
Is earthquake insurance required by lenders?
It is generally not required, although a lender can set its own conditions. Ask your lender if you are unsure.
Does earthquake insurance cover my belongings?
Many policies offer contents coverage, sometimes as an option. Limits and deductibles vary, so check the details.
Sources
- NAIC – Consumer Insight: Understanding Earthquake Deductibles
- NAIC – Earthquake Insurance (CIPR topic)
- California Earthquake Authority – Homeowners coverages and deductibles
- NAIC – Do You Know What to Do Before and After an Earthquake?
- U.S. Geological Survey – Earthquake Hazards
General information only. This guide explains general concepts and is not insurance, legal or financial advice. Rules and prices vary by state and insurer. Check your policy documents and speak to a licensed insurance professional or your state insurance department about your situation.