Earthquake Insurance Coverage for Homeowners (2024)

FAQs

What does homeowners insurance cover in an earthquake? ›

Earthquakes and coverage

Homeowners and renters insurance does not cover earthquake damage. A standard policy will, however, generally cover losses from fire following a quake and, if such a fire makes your home unlivable, cover the additional living expenses incurred while you live elsewhere during repairs.

If you live near an active fault line, and earthquakes happen with relative frequency, it might be worth it to get earthquake insurance. Additionally, if there was an earthquake that caused significant damage in an area within the past few decades, it might be worth considering.

The Cost Of Earthquake Insurance In California

On average, homeowners in California pay an average of $739 per year for earthquake insurance. However, your exact costs can vary widely based on the amount of coverage you need, the home's risk and other factors.

Did You Know? Standard homeowners' insurance does not cover damage resulting from land movement or landslides. Many insurance companies stopped insuring earthquakes in the 1990s after projections suggested that a major earthquake could potentially bankrupt them.

You may even have to move out of your home while it is repaired or rebuilt. Homeowners, renters, and condominium insurance policies do not cover damage from natural disasters such as earthquakes, floods, and landslides. Earthquake insurance can help pay for some of your losses.

FEMA offers various grants to assist individuals and households affected by disasters. While FEMA does not typically provide direct financial assistance for earthquake damage, it may offer grants to help homeowners or renters elevate their homes to reduce future earthquake risks.

AAA earthquake insurance is available to renters and homeowners in California. The average policy costs approximately $850 per year. Your total premium will depend on various factors, including the age and location of your home.

Factors that impact the cost of earthquake insurance

Your home's proximity to a seismic zone. Your home's age. Your foundation and construction type (masonry will mostly likely be more expensive to insure) The deductible you choose.

Earthquake damage to your California home is not covered by a homeowners insurance policy. Earthquake home insurance must be added by buying a separate policy. CEA is not-for-profit. Our insurance rates are based on the best available science and research, not profit.

The deductible for earthquake insurance is usually 10%–20 % of your coverage limit. For example, if you insured your home for $200,000, a 10% deductible would be $20,000, which you will have to pay. Remember, a larger deductible means you'll have to pay more for losses.

Does earthquake insurance cover foundation cracks? ›

Residential earthquake insurance typically pays for damaged walls, foundations, and ceilings.

A: Your home insurance policy covers many natural disasters and weather events, including wind, hail, lightning strikes and wildfires. However, it does not cover damage caused by floods or earthquakes.

For example, earthquake insurance typically only covers direct damage to the property resulting from the shaking of an earthquake. Indirect damage, such as fire and water damage from burst gas and water pipes is covered under a homeowners policy.

A deductible is the amount the homeowner is responsible for paying on each claim. The deductible for earthquake insurance is usually 10%–20% of the coverage limit. For example, if your home is insured for $200,000 a 10% deductible would be $20,000. Depending on the policy, there may be separate deductibles.

The deductible for earthquake insurance is usually 10%–20 % of your coverage limit. For example, if you insured your home for $200,000, a 10% deductible would be $20,000, which you will have to pay. Remember, a larger deductible means you'll have to pay more for losses.

Floods. Flood coverage is excluded from all types of homeowners insurance policies. Climate change has caused devastating flood events to happen more frequently across the country, especially in recent years.