Earthquake Insurance
Central Valley, Elk Grove, Lodi, Minden, Santa Rosa, Sonora, St Helena, Visalia, Walnut Creek

Impossible to predict, earthquakes can cause major damage to your personal property and home. It is a common assumption that homeowners insurance covers earthquakes and other natural disasters, but this isn’t always the case.

Keep reading to find why earthquake insurance may be right for you.

Do I need earthquake insurance?

Although you may associate the risk of damage to your property from an earthquake to the proximity of an earthquake fault, remember earthquakes can cause damage to property that is located a great distance from the epicenter.

The amount of damage caused by an earthquake depends on your distance from the epicenter, the size of the earthquake, nearby bodies of water, and the type of sediment under your property.

What does earthquake insurance cover?

Earthquake insurance provides coverage for damages caused by an earthquake's most damaging effects, such as ground shaking, soil liquefaction, and slope failure.

Ground shaking

This happens when the ground moves both vertically and horizontally. Ground shaking typically causes extreme property damage. In general, unenforced brick or masonry homes will sustain more damage than more flexible wood-frame homes. If you have an older home that has not been retrofitted for earthquakes, the risk of damage is much greater. Ground shaking from a large earthquake can destroy buildings; seriously damage dikes and dams; and trigger large landslides.

Soil liquefaction

Earthquake insurance can also provide coverage for soil liquefaction caused by earthquakes. Soil liquefaction can induce different types of ground failure causing a house to settle or tip. It can also cause flow failures that may produce fast-moving debris flows.

Slope failure

An earthquake can cause a slope failure, particularly if the slope is wet. This usually occurs when the earthquake induces flooding along the shores of lakes and reservoirs, where the ground surface drops below the water table, and along altered stream courses, canals, sewer lines, or other gravity-flow systems where slope gradients are lessened or reversed.

Does homeowners insurance cover earthquakes?

Damage from earthquakes is not covered by a standard homeowners policy. Similar to flood insurance, earthquake insurance must be purchased separately, or added as an endorsement on your homeowners policy.

Many insurance companies have specific enrollment periods for earthquake coverage. If you choose not to add the coverage when you purchase a homeowners policy, you may need to wait until your policy renews to add the coverage. If you are not currently covered, you may receive an offer for earthquake coverage with your renewal policy. This coverage is typically offered every other year.

How will earthquake insurance help?

Earthquake coverage will help pay for the costs associated with earthquake damage, such as repairing or replacing your home, replacing the contents of your home, temporary accommodations, and paying a mortgage, second mortgage, or line of credit on your home if your home is destroyed. If you have a typical home loan and deed of trust, you will remain responsible for the loan balance even if your home is damaged or destroyed by an earthquake, so being financially protected by earthquake insurance is critical. The deductible and amount of coverage available for earthquake damages vary by state.

How much does earthquake insurance cost?

In California, there are a handful of insurance carriers to select from for earthquake insurance. The most popular is the California Earthquake Authority (CEA) which offers coverage for homes, mobile homes, condos, and renters.

The CEA is unique because the policyholder has an option of what coverages and deductibles they would like to purchase. The deductible options range from 5% to 25%, which is based off of the dwelling coverage limit. The dwelling coverage amount on the earthquake policy must match the limit of your underlying home policy.

The CEA has two plans available: Homeowners Choice and Standard Homeowners.

Under the Choice program, coverage is automatic for the dwelling, building code upgrade, and emergency repairs. You may choose to include personal property under this program. The Choice program is flexible, allowing policyholders to choose the coverages and options that best meet their needs and budget.

Under the Homeowners program, the following coverages are bundled: dwelling, personal property, building code upgrade, loss of use, and emergency repairs.

Other optional coverages (available under both programs) include coverage for breakables (for items such as dishes and ceramics), debris removal, and the optional coverage for exterior masonry veneer.

How can I protect my family and home in the event of an earthquake?

• Secure bookcases and shelves to prevent them from toppling over and causing injury or damage.
• Do not place heavy unsecured items on shelves above beds, cribs, or couches.
• Consider retrofitting your home to be sound, especially if it is an older home.
• Securely anchor large appliances to the wall and brace your water heater.
• Secure heavy equipment such as TVs and computers to the furniture on which they are placed.
• Use closed screw eyes instead of traditional picture hangers to secure pictures and other valuable artwork to the walls.

Many insurance companies have specific enrollment periods for earthquake insurance coverage. If you choose not to add the coverage when you purchase a homeowners policy, you may need to wait until your policy renews to add the coverage.

Frequently Asked Questions

• How much does earthquake insurance cost?

  The cost of earthquake insurance can vary depending on several factors, including the location of the insured property, the risk of earthquakes in that area, the value of the property, the coverage limits, and deductibles chosen.

  In high-risk earthquake areas, such as regions along major fault lines, the cost of earthquake insurance tends to be higher. Similarly, if the property is located in an area with a history of frequent or severe earthquakes, the premiums will likely be higher compared to areas with a lower risk.

  The cost of earthquake insurance is also influenced by the coverage limits and deductibles. Higher coverage limits and lower deductibles generally result in higher premiums. Additionally, factors such as the type of construction of the property, its age, and proximity to fire stations or other emergency services may also affect the cost.

• Do I need earthquake insurance?
  Although you may associate the risk of damage to your property from an earthquake to the proximity of an earthquake fault, remember earthquakes can cause damage to property that is located a great distance from the epicenter. The amount of damage caused by an earthquake depends on your distance from the epicenter, the size of the earthquake, nearby bodies of water, and the type of sediment under your property.
• How will earthquake insurance help?
  Earthquake coverage will help pay for the costs associated with earthquake damage, such as repairing or replacing your home, replacing the contents of your home, temporary accommodations, and paying a mortgage, second mortgage, or line of credit on your home if your home is destroyed. If you have a typical home loan and deed of trust, you will remain responsible for the loan balance even if your home is damaged or destroyed by an earthquake, so being financially protected by earthquake insurance is critical. The deductible and amount of coverage available for earthquake damages vary by state.
• How can I protect my family and home in the event of an earthquake?
  Secure bookcases and shelves to prevent them from toppling over and causing injury or damage. Do not place heavy unsecured items on shelves above beds, cribs, or couches. Consider retrofitting your home to be sound, especially if it is an older home. Securely anchor large appliances to the wall and brace your water heater. Secure heavy equipment such as TVs and computers to the furniture on which they are placed. Use closed screw eyes instead of traditional picture hangers to secure pictures and other valuable artwork to the walls. Many insurance companies have specific enrollment periods for earthquake insurance coverage. If you choose not to add the coverage when you purchase a homeowners policy, you may need to wait until your policy renews to add the coverage.
• Does homeowners insurance cover earthquakes?
  Damage from earthquakes is not covered by a standard homeowners policy. Similar to flood insurance, earthquake insurance must be purchased separately, or added as an endorsement on your homeowners policy. Many insurance companies have specific enrollment periods for earthquake coverage. If you choose not to add the coverage when you purchase a homeowners policy, you may need to wait until your policy renews to add the coverage. If you are not currently covered, you may receive an offer for earthquake coverage with your renewal policy. This coverage is typically offered every other year.
• What does earthquake insurance cover?
  Earthquake insurance provides coverage for damages caused by an earthquake's most damaging effects, such as ground shaking, soil liquefaction, and slope failure. Ground shaking This happens when the ground moves both vertically and horizontally. Ground shaking typically causes extreme property damage. In general, unenforced brick or masonry homes will sustain more damage than more flexible wood-frame homes. If you have an older home that has not been retrofitted for earthquakes, the risk of damage is much greater. Ground shaking from a large earthquake can destroy buildings; seriously damage dikes and dams; and trigger large landslides. Soil liquefaction Earthquake insurance can also provide coverage for soil liquefaction caused by earthquakes. Soil liquefaction can induce different types of ground failure causing a house to settle or tip. It can also cause flow failures that may produce fast-moving debris flows. Slope failure An earthquake can cause a slope failure, particularly if the slope is wet. This usually occurs when the earthquake induces flooding along the shores of lakes and reservoirs, where the ground surface drops below the water table, and along altered stream courses, canals, sewer lines, or other gravity-flow systems where slope gradients are lessened or reversed.