Earthquake Insurance

Earthquake insurance helps cover the cost of repairing or rebuilding your home and replacing personal belongings after a quake. Since standard homeowners insurance typically excludes earthquake damage, a separate earthquake policy is essential for financial protection—especially in high-risk areas like California.

Do I need earthquake insurance?

While earthquake insurance isn’t legally required in California and most lenders don’t mandate it, it’s worth serious consideration. Standard homeowners, renters, and condo insurance policies do not cover earthquake damage.

Without this coverage, you’d be responsible for all repairs and living expenses out of pocket following a major quake.

What’s covered?

Earthquake insurance typically includes:

  • Dwelling Coverage
    Rebuilds or repairs your home (coverage usually matches your homeowners policy).

  • Personal Property
    Covers items like furniture, electronics, and clothing damaged in a quake.

  • Loss of Use
    Pays for temporary housing or loss of rental income if your home is uninhabitable.

  • Building Code Upgrades
    Helps pay for construction required to meet current codes after a loss.

Coverage by policy type:

  • Condo Owners
    Covers interior unit improvements and belongings. The HOA is responsible for the building’s exterior.

  • Renters
    Covers personal property and loss of use only, making policies more affordable.

Is it worth it?

Premiums vary based on location, construction type, and coverage limits. For example:

  • San Francisco has high seismic risk—expect higher premiums.

  • Sacramento has lower risk and more affordable options.

Keep in mind: Premiums can be 2–3x higher than standard homeowners insurance in high-risk zones, but the potential financial loss from a quake often justifies the cost.

Considerations and limitations

Be aware of the following:

  • High Deductibles
    Ranging from 5% to 25% of the dwelling limit.
    Example: For $600,000 in dwelling coverage with a 15% deductible, you pay the first $90,000 in damages.

  • Coverage Caps
    Policies may have sub-limits for personal property or loss of use.

  • Not Automatic
    Earthquake insurance must be purchased separately or as an endorsement.

How do I get earthquake insurance?

You have three main options:

  • California Earthquake Authority (CEA)
    Available through insurers that participate with CEA.

  • Homeowners Policy Endorsement
    Some carriers offer a limited earthquake add-on.

  • Standalone Earthquake Policy
    Independent carriers may offer broader or more flexible coverage.

When your property insurance renews, you’ll typically receive an earthquake coverage offer. Review it carefully, and request a quote to evaluate your risk and budget.

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