The short answer
Usually not. Most homeowners policies exclude earthquakes and other earth movement, such as landslides and sinkholes in many cases. If an earthquake cracks your foundation or damages your walls, a standard policy typically won't pay for the repairs. To be covered, you usually need an earthquake endorsement added to your policy or a separate earthquake policy.
What earthquake coverage can include
Details vary by carrier and state, but earthquake coverage often includes:
- Damage to the structure of your home
- Your personal belongings
- Extra living costs while your home is being repaired
- Sometimes, other structures like a detached garage, if you choose it
How the deductible works
Earthquake coverage usually has a separate deductible, often set as a percentage of your dwelling coverage rather than a flat dollar amount. Here is a hypothetical example: with a $400,000 dwelling limit and a 10% deductible, you'd pay the first $40,000 of covered damage. That's why it helps to compare deductible options against your savings.
What a standard policy may still cover
An earthquake can set off other events. Many homeowners policies cover fire, even when an earthquake caused it, and some cover water damage from a burst pipe. Damage from the shaking itself is what's usually excluded. Read your exclusions and ask your agent how your policy treats related damage.
Sprinkler leaks or gas line breaks set off by shaking can raise similar questions. Policy wording decides how each kind of damage is treated.
Do you need it?
Earthquakes can happen in more places than many people think. A few questions can help you decide:
- Is your area near a known fault or has it had quakes before?
- Is your home older, on a slope, or built of brick or stone?
- Could you pay for major repairs out of pocket?
- How much equity do you have in the home?
Check your policy
Your declarations page lists your coverages and any endorsements. The exclusions section explains what isn't covered, including earth movement. If you're not sure what you have, an agent can walk through it with you.
How CapCenter can help
CapCenter's in-house insurance agency compares home insurance quotes from multiple carriers, and an agent can review your current policy. CapCenter's agents can also quote earthquake coverage that fits your home and budget.
