Why homeowners insurance usually doesn't cover it
Most homeowners policies exclude earth movement, which includes earthquakes. Fire after an earthquake is often covered by your homeowners policy, but the shaking damage itself usually isn't. Flood and earthquake are separate policies.
What earthquake insurance often covers
Coverage depends on your policy, so read the details. Many earthquake policies include:
- Damage to your home's structure from shaking
- Damage to your belongings
- Extra living costs if you can't live in your home during repairs
- Some costs to meet building codes when you rebuild, depending on the policy
What it usually doesn't cover
- Flood, including flooding or a tsunami caused by an earthquake
- Damage to vehicles, which falls under auto comprehensive coverage
- Some items like pools, fences or landscaping, depending on the policy
- Damage that existed before the policy started
How the deductible works
Earthquake deductibles are often a percentage of your dwelling coverage, commonly around 10% to 20%, though options vary by carrier. Some policies apply separate deductibles to the home and belongings.
Hypothetical example: with $300,000 of dwelling coverage and a 10% deductible, you would pay the first $30,000 of covered damage to the home. Pick a deductible you could realistically cover.
Who might consider it
Earthquakes are most common in the West, but other areas have seismic risk too, including parts of the central U.S. and the East Coast. It may be worth a look if:
- You live in an area with known seismic risk
- Your home is older or built on soft soil or a slope
- You couldn't afford to repair major damage out of pocket
- Your home equity is a large part of your savings
Endorsement or separate policy
Some carriers let you add earthquake coverage to your homeowners policy as an endorsement. In other cases, it's a separate policy from a different carrier or a state program, where one exists. An endorsement keeps things in one place. A separate policy may offer more choices on limits and deductibles. Either way, compare the dwelling limit, the deductible, belongings coverage and extra living costs side by side.
What affects the price
Prices vary by carrier and location. Common factors include how close you are to fault lines, the soil, the age and construction of your home, and the deductible you choose. In lower-risk areas, coverage often costs less than in high-risk areas.
Ask an agent
CapCenter's in-house insurance agency compares coverage across multiple carriers. An agent can help you understand your current exclusions and whether earthquake coverage is available for your home.
