Earthquakes can cause sudden and severe damage to homes, often resulting in repair costs far beyond what most homeowners can afford out of pocket. Despite this risk, many people assume their standard homeowners insurance will cover earthquake damage—but in most cases, it does not. Earthquake insurance is a separate form of coverage designed to protect your home and finances when seismic activity strikes.
This guide explains how earthquake insurance works, what it covers, who needs it, and how to decide if it’s worth the cost.
Why Homeowners Insurance Doesn’t Cover Earthquakes
Standard homeowners insurance policies exclude damage caused by earth movement. This includes earthquakes, aftershocks, landslides, and soil shifting—even if these events cause fires, foundation cracks, or structural collapse.
Without a separate earthquake policy or endorsement, homeowners are responsible for all repair and rebuilding costs.
What Is Earthquake Insurance?
Earthquake insurance is a specialized policy that helps pay for damage caused by seismic activity. It can be purchased as:
A standalone earthquake insurance policy
An endorsement added to an existing homeowners policy
Coverage terms and availability vary by location and insurer.
What Earthquake Insurance Typically Covers
Dwelling Coverage
Dwelling coverage pays to repair or rebuild your home if it’s damaged by an earthquake. This includes:
Foundation damage
Walls and structural supports
Roof and framing
Electrical and plumbing systems
Because earthquake damage often affects the foundation, this coverage is especially critical.
Personal Property Coverage
Earthquake insurance can cover personal belongings damaged or destroyed during a quake, such as:
Furniture
Appliances
Electronics
Clothing
Coverage limits and deductibles apply, and high-value items may require additional protection.
Additional Living Expenses
If your home becomes uninhabitable due to earthquake damage, coverage may include temporary housing, meals, and related living expenses while repairs are made.
What Earthquake Insurance Does NOT Cover
Earthquake policies usually exclude:
Damage from flooding after an earthquake
Vehicles
Outdoor structures like pools and fences
Land damage
Wear and tear or pre-existing structural issues
Flood insurance is often needed separately, even after a quake.
Understanding Earthquake Insurance Deductibles
Earthquake insurance deductibles are typically much higher than standard homeowners deductibles. They are often calculated as a percentage of the dwelling coverage, commonly ranging from 5% to 20%.
For example, a 10% deductible on a $400,000 home means you would pay $40,000 out of pocket before insurance applies.
Who Should Consider Earthquake Insurance?
Earthquake insurance is especially important if:
You live in an earthquake-prone region
Your home has a slab or older foundation
You could not afford major repairs out of pocket
Your home represents a large portion of your net worth
Even moderate earthquakes can cause significant structural damage.
Reducing Earthquake Risk at Home
Insurance is only part of protection. Risk reduction measures can help limit damage and may lower premiums:
Seismic retrofitting
Bolting the home to its foundation
Reinforcing cripple walls
Securing heavy furniture and appliances
Some insurers offer discounts for retrofitted homes.
How Much Earthquake Insurance Do You Need?
Coverage should be based on:
Rebuild cost of your home
Value of personal belongings
Ability to absorb a high deductible
Local seismic risk
Underinsuring can leave you exposed, while overinsuring increases premiums unnecessarily.
Common Earthquake Insurance Mistakes
Assuming homeowners insurance covers earthquakes
Choosing deductibles without understanding the real cost
Ignoring personal property coverage
Skipping coverage because quakes are “rare”
Not reviewing policies after home improvements
Avoiding these mistakes improves financial resilience after a quake.
Is Earthquake Insurance Worth It?
Earthquake insurance is about catastrophic risk, not minor repairs. If an earthquake would cause financial devastation without coverage, insurance may be essential. If you can comfortably self-insure major losses, you may choose to accept the risk.
The decision depends on risk tolerance, location, and financial capacity.
Final Thoughts
Earthquake insurance protects against one of the most destructive and unpredictable natural disasters. While it comes with higher deductibles and added cost, it can prevent long-term financial hardship and loss of your home after a major seismic event.
The best time to consider earthquake insurance is before the ground starts shaking.