Shaken, Not Stirred: Why Your Home May Need Earthquake Insurance

Hurricanes get all the attention on the news. Tornadoes make for dramatic footage. Wildfires create those apocalyptic orange skies we see on social media. But earthquakes? They're the silent threat that keeps me up at night as a homeowner.

Here's the thing about earthquakes - they don't send you a weather alert first. No "severe earthquake warning" pops up on your phone. One minute you're making coffee, the next minute your house is doing the cha-cha and your TV is on the floor.

What really gets me is how many people assume their regular home insurance covers earthquake damage. Spoiler alert: it doesn't. I learned this the hard way when I started researching after that 4.2 quake we had last year that cracked my neighbor's driveway. Turns out, if Mother Nature decides to shake things up, you're pretty much on your own unless you've got earthquake insurance.

So let's talk about whether you actually need this stuff, what it covers, and - let's be honest - whether it's worth the cost.

What Exactly IS Earthquake Insurance?

Think of earthquake insurance as your home's bodyguard against ground-shaking mayhem. Your regular homeowners policy is great for fires, break-ins, and that tree branch that crashes through your roof during a storm. But the minute the earth starts moving? Your regular policy basically shrugs and says “not my problem.”
 

How It's Different from Your Regular Policy

I'll give you a real example. My friend Sarah had a pipe burst last winter and flooded her basement - homeowners insurance covered it, no questions asked. But when the Northridge earthquake hit back in '94 (yeah, I'm old enough to remember), my uncle's foundation cracked and his chimney toppled over. Regular insurance? Nope. He was stuck with a $30,000 repair bill.

That's because standard policies have what's called an "earth movement" exclusion. Basically, if the ground moves and damages your house, you're out of luck without earthquake coverage.

Where You Actually Need This Stuff

Everyone thinks of "California" when earthquakes come up, but that's not the whole story. Sure, California has the San Andreas Fault and all that drama. But have you heard of the Cascadia Subduction Zone? It runs along the Pacific Northwest coast, and geologists say it's overdue for "the big one."

Then there's the New Madrid Seismic Zone in Missouri. In 1811-1812, earthquakes there were so powerful they actually made the Mississippi River flow backward. Today, millions of people live in that area, and most have no idea they're in an earthquake zone.

Alaska gets hammered regularly. Nevada, Utah, and parts of South Carolina all sit on active fault systems. The point is, earthquake risk isn't just a West Coast thing anymore.

What Does This Insurance Actually Cover?

Earthquake policies aren't one-size-fits-all, but here's what most of them handle:

Your House Structure

When earthquakes hit, they don't mess around. Walls crack, roofs cave in, and sometimes entire houses slide right off their foundations. I've seen photos from the 1989 Loma Prieta quake where whole neighborhoods looked like someone had taken a giant sledgehammer to them.

Earthquake insurance helps pay to fix or rebuild when this happens. And trust me, structural repairs after an earthquake aren't cheap - we're talking tens of thousands, sometimes hundreds of thousands of dollars.

Foundation Problems

Even a "minor" earthquake can wreck your foundation. I put "minor" in quotes because there's nothing minor about a $50,000 foundation repair. One homeowner I know in Alaska dealt with this after a 5.8 magnitude quake. The house looked fine from the outside, but the foundation had shifted just enough to make the whole structure unstable.

Your Stuff Inside

All those electronics, furniture pieces, family heirlooms, and expensive appliances? They can get destroyed when your house starts shaking like a paint mixer. Most earthquake policies cover personal property damage, though you'll want to check the limits. Some insurers cap personal property coverage pretty low.

Temporary Living Costs

Here's something people don't think about - what happens if your house becomes unlivable after a quake? You've got to stay somewhere while repairs happen, and that somewhere costs money. Hotels, rental properties, eating out every meal because you don't have a kitchen - it adds up fast.
 

Good earthquake policies include "additional living expense" coverage to help with these costs.

What WON'T Be Covered (This Part's Important)

Flooding After Earthquakes

This one catches people off guard. Earthquakes can cause tsunamis, break dams, or rupture water mains. All that flooding? Not covered by earthquake insurance. You'd need separate flood insurance for that, and here's the kicker - you can't buy flood insurance and expect immediate coverage. There's usually a 30-day waiting period.

Fire Damage

Weirdly enough, if an earthquake breaks a gas line and your house burns down, your regular homeowners insurance typically covers the fire damage. The earthquake insurance would handle the initial gas line break, but the fire itself falls under your standard policy.

Your Car

If your garage collapses and crushes your car, or if your vehicle gets damaged in the quake, earthquake insurance won't help. You'd need comprehensive auto coverage for that.

The Money Question: What Does This Cost?

Okay, let's talk dollars and cents, because this is probably what you really want to know.

The Real Numbers

Nationally, you're looking at anywhere from $100 to $1,000+ per year for earthquake insurance. But those are pretty meaningless averages because location makes a huge difference.

In California, I've seen quotes ranging from $800 to $2,500 annually for a typical home. In lower-risk areas like the East Coast, you might pay just a few hundred bucks a year. In Washington and Oregon, costs are climbing as people wake up to the Cascadia risk.

Those Crazy High Deductibles

Here's where earthquake insurance gets weird compared to other policies. Instead of a flat deductible like "$1,000" or "$2,500," earthquake deductibles are percentage-based. Usually anywhere from 10% to 25% of your home's insured value.
 

Let's say your house is insured for $400,000 and you have a 15% deductible. You'd pay the first $60,000 in damage out of pocket before insurance kicks in. Yeah, that's a lot. But remember, this insurance is designed for catastrophic losses, not minor repairs.

Location, Location, Location

Where you live determines everything. A friend of mine in San Francisco pays about $2,200 a year for earthquake coverage on her $800,000 condo. Meanwhile, my cousin in Ohio pays $180 annually for earthquake insurance on a similar value home. The difference? Proximity to active fault lines.

According to the Insurance Information Institute, annual earthquake insurance net written premiums in the U.S. have more than doubled—from about $1.64 billion in 2015 to approximately $3.73 billion by 2024, signaling rising homeowner demand and escalating coverage costs.

Source: Insurance Information Institute – Facts + Statistics: Earthquakes and tsunamis

Do You Actually Need This?

This is the big question, and honestly, it depends on your situation.

Check Your Risk Level

Start with geography. The U.S. Geological Survey has detailed earthquake hazard maps that show risk levels across the country. Spend five minutes looking up your area - you might be surprised what you find.

But location isn't everything. Consider these factors:

Your house's age and construction: Newer homes built to modern seismic codes fare much better in earthquakes. If you've got a brick house from 1925, that's a different risk level than a wood-frame house built in 2015.

Your financial situation: Could you afford to rebuild your house from scratch if it got destroyed? If the answer is "absolutely not," then earthquake insurance starts looking pretty essential.

Your mortgage situation: Some lenders in high-risk areas are starting to require earthquake coverage, especially for jumbo loans.

Endorsement vs. Standalone Policy

You've got two ways to buy earthquake coverage:

Endorsements are add-ons to your existing homeowners policy. They're usually cheaper but often come with limited coverage and higher deductibles.

Standalone policies cost more but typically offer better coverage limits and more flexibility. I generally recommend standalone policies if you're in a high-risk area. The extra cost is usually worth the better protection.

How to Actually Get This Coverage

Here's my honest advice: don't try to figure this out online by yourself. Earthquake policies are complicated, full of exclusions and technical language that can trip you up.

Find a local insurance agent who understands earthquake risk in your specific area. They'll know which insurers offer the best coverage for your region and can explain the differences between policies in plain English.

In California, most people go through the California Earthquake Authority (CEA), which offers standardized policies through participating insurers. Other states have their own programs or rely on private insurers.

The Bottom Line

Look, earthquake insurance isn't cheap, and those high deductibles mean you'll still pay a lot out of pocket if disaster strikes. But if you live in an earthquake-prone area and couldn't afford to rebuild your house tomorrow, this coverage could literally save your financial life.

I finally bought earthquake insurance two years ago after that minor quake I mentioned earlier. Do I hope I never need it? Absolutely. But do I sleep better knowing it's there? You bet.

If you're in California, Washington, Oregon, Alaska, or any other seismic hotspot, earthquake insurance isn't just some optional extra - it's financial protection against a very real risk.

Ready to protect your home? Connect with local earthquake insurance agents through IA Near Me. Compare earthquake insurance quotes and find coverage that makes sense for your situation.

Frequently Asked Questions

Do I legally have to carry earthquake insurance in California?

Nope, California doesn't require homeowners to have earthquake insurance. But here's what I've learned talking to people in the industry - many mortgage lenders strongly encourage it, especially for expensive homes. The California Earthquake Authority makes it pretty easy to get coverage, so there's really no excuse not to at least get a quote.
 

Why are these deductibles so ridiculously high?

I wondered the same thing when I first looked into this. The high deductibles (usually 10-25% of your home's value) exist because earthquake insurance is meant to protect against total disasters, not minor damage. Think of it this way - if a small earthquake puts a few cracks in your wall, you handle that yourself. If a major earthquake destroys your house, insurance steps in to help you rebuild.

I'm renting - does my renters insurance cover earthquake damage?

Standard renters insurance won't cover your stuff if an earthquake damages it. But most insurance companies offer earthquake endorsements for renters policies, and they're usually pretty affordable. If you're renting in a high-risk area, it's worth considering - replacing all your belongings after an earthquake isn't cheap.