Quick answer: Standard homeowners, renters and condo policies do not cover earthquake damage, so earthquake coverage must be bought separately as an endorsement or policy. Earthquake deductibles are usually a percentage of the dwelling limit rather than a flat dollar amount. In California, the California Earthquake Authority (CEA) offers deductibles of 5%, 10%, 15%, 20% and 25% through participating insurers, with some homes limited to 15% or higher. Earthquake policies typically exclude fire (which your homeowners policy covers), land, vehicles and flood. Retrofitting an older home may reduce both damage and premiums.
Earthquakes are not just a West Coast concern. Insurers and government agencies point to seismic risk in many regions, but earthquake insurance remains something most homeowners must choose to buy. Because standard homeowners policies leave earthquake damage out, a strong shake can leave an uninsured owner paying for repairs or rebuilding entirely on their own.
This guide explains how earthquake insurance works, using California’s detailed public guidance as an example. For an overview of homeowners coverage and exclusions, see our complete homeowners insurance guide.
Sources: California Department of Insurance (CDI), “Earthquake Insurance” consumer guide (revised April 25, 2024); California Earthquake Authority (CEA); Insurance Services Office (ISO) homeowners forms, which exclude earth movement; U.S. Geological Survey (USGS). Coverage options and rules vary by state and insurer. This is general information, not insurance advice.
Why Your Homeowners Policy Doesn't Cover Earthquakes
The California Department of Insurance states plainly that homeowners, renters and condominium insurance policies do not cover damage from natural disasters such as earthquakes, floods and landslides. Standard ISO homeowners forms, used as a base by many insurers nationwide, exclude earth movement, including earthquakes.
There is an important exception: fire. CDI notes that your homeowners policy covers fire damage even if an earthquake causes the fire, and California law requires both homeowners and renters insurance to cover fire damage caused by or following an earthquake. CDI also notes that in some cases homeowners or renters policies may cover direct loss from explosion, theft or breaking glass caused by an earthquake. Read your policy and contact your insurer whenever an earthquake damages your property, rather than assuming nothing is covered.
For a refresher on what each part of a homeowners policy covers, read our guide to homeowners insurance Coverages A through F.
How Earthquake Coverage Is Sold
Earthquake coverage is generally available in two ways:
- As an endorsement added to a homeowners, condo or renters policy, where the insurer offers it.
- As a separate policy, either from your home insurer or from a company that writes stand-alone earthquake coverage.
In California, CDI explains that insurers that sell homeowners insurance must offer earthquake coverage in writing every other year, including the limits, deductible and premium. You have 30 days from the mailing date to accept the offer, and not replying counts as rejecting it.
Most California earthquake policies come from the California Earthquake Authority. According to CDI, you cannot buy directly from CEA. You buy a CEA policy from the participating insurance company that writes your residential property policy. A few companies also offer stand-alone earthquake policies that are not CEA policies and do not require buying your homeowners insurance from the same company.
The Main Parts of an Earthquake Policy
The CDI guide describes three main parts of basic CEA coverage, and many earthquake policies are organized similarly.
Dwelling coverage
This part covers your home up to a limit. Under a CEA policy, CDI explains, the earthquake dwelling limit equals the dwelling limit on your homeowners policy. CDI notes that CEA policies, like most earthquake policies, do not cover landscaping, pools, fences, masonry or separate buildings.
Personal property coverage
This covers belongings such as furniture, TVs and computers. Under CEA policies, CDI says the limit starts at $5,000 and can be increased to $25,000.
Additional living expenses
This pays the extra cost of living elsewhere while your area is evacuated or your home is repaired, such as temporary rent, restaurant meals, moving and storage, furniture rental and laundry. CDI lists CEA limits ranging from $1,500 to $100,000, and says this coverage never has a deductible under CEA.
Additional coverages
CDI notes that you may be able to buy building code upgrade coverage, which pays for upgrades needed to get a reconstruction permit, and that CEA homeowners policies include the first $1,500 for emergency repairs with no deductible.
| CEA coverage part | Limit information from CDI | Deductible |
|---|---|---|
| Dwelling | Same as homeowners dwelling limit | 5% to 25% options, subject to exceptions |
| Personal property | $5,000, increasable to $25,000 | Applies, with waiver rules under Homeowners Choice |
| Additional living expenses | $1,500 to $100,000 | None under CEA |
| Emergency repairs | First $1,500 included | None |
How Earthquake Deductibles Work
Earthquake deductibles differ from the flat dollar deductibles on most homeowners policies. They are usually a percentage of the dwelling coverage limit. A 10% deductible on a home insured for $400,000, for example, means you pay the first $40,000 of covered dwelling damage.
CDI reports that CEA offers deductibles of 5%, 10%, 15%, 20% and 25%, with two exceptions where the lowest available deductible is 15%:
- homes valued at over $1 million; and
- homes built before 1980 on a raised or mixed foundation that are not verified as seismically retrofitted.
State law only requires insurers to offer a 15% deductible, according to CDI.
Homeowners Choice policies
CEA’s Homeowners Choice policy lets you choose separate dwelling and personal property coverage with different deductibles. According to CDI, CEA will not apply both deductibles to the same claim: it waives the personal property deductible if covered damage to the house exceeds the dwelling deductible.
Choosing a deductible
A lower percentage costs more in premium but leaves you less exposed. When choosing, consider how much cash or credit you could access after a major quake, the age and construction of your home and whether you have a mortgage. Percentage deductibles work similarly to hurricane deductibles; see our explainer on hurricane and wind/hail deductibles.
What Earthquake Insurance Doesn't Cover
CDI lists common earthquake insurance exclusions:
- Fire. Covered by your homeowners policy instead, even when an earthquake causes it.
- Land. Damage to land, such as sinkholes or openings under your property, is usually excluded, though limited coverage to restore or stabilize land may be available.
- Vehicles. Check your auto policy.
- Flood. Earthquake insurance does not cover water damage from outside your home, such as sewer or drain backup, flood or tsunami. CDI points to flood insurance for that risk.
Our guide to flood insurance basics covers the National Flood Insurance Program and private flood options.
Renters, Condo Owners and Mobile Home Owners
Earthquake coverage is available beyond single-family homeowners:
- Renters can buy earthquake coverage for belongings and for the cost of living elsewhere while the rental is repaired.
- Condo owners can cover belongings and living expenses and may need coverage for association assessments. CDI explains that a master policy may not cover earthquake damage to common areas and exterior structures, and that associations may assess owners for repairs or the master deductible. CDI says CEA condo unit policies provide up to $100,000 for an owner’s share of certain assessments after a covered earthquake.
- Mobile home owners can cover the home, belongings and additional living expenses.
Earthquake Risk Outside California
California’s rules are the most detailed, but earthquake risk is national. The USGS publishes national seismic hazard maps showing that significant shaking is possible in parts of the Pacific Northwest, Alaska, Hawaii, the Intermountain West, the central Mississippi Valley and parts of the Southeast and Northeast. Outside California, earthquake coverage is usually offered by individual insurers as an endorsement or separate policy rather than through a state authority, and deductibles and limits vary by company. If you live in one of these areas, ask your insurer what it offers and review the USGS maps for your location.
How Premiums Are Set
Earthquake premiums depend on location, the cost to rebuild, construction type, coverages selected and the deductible, CDI explains. Costs tend to be higher for:
- older homes;
- homes built of brick or masonry;
- homes with more than one story;
- homes on sandy soil instead of clay or rock; and
- homes that are not up to code.
For a general look at what drives home insurance pricing, read what factors determine your insurance premium.
Retrofitting: Reducing Damage and Cost
Retrofitting means changing a home to make it stronger and safer in an earthquake. According to CDI, CEA insurance may give older homes a discount of up to 25% if they have been properly retrofitted, and California insurers must tell policyholders in writing about retrofit discounts.
Retrofit steps CDI lists include:
- bolting the house to the foundation;
- bracing the chimney;
- bracing the water heater to a wall;
- installing automatic gas shut-off valves; and
- strengthening cripple walls with plywood.
Low-cost steps to protect belongings are also on CDI’s list, such as securing breakables with museum putty, latching china cabinets, bolting tall furniture to wall studs and tying down computers and TVs.
Deciding Whether You Need Earthquake Insurance
CDI frames the decision as a set of questions:
- Can you afford the premium? CEA’s website offers a premium calculator.
- Do you live where earthquakes are common? Research nearby faults and soil types. USGS publishes fault and hazard information at earthquake.usgs.gov.
- Is your house high risk? Older, brick or masonry and multi-story homes are more likely to suffer damage.
- Can you afford not to have it? Could you repair or rebuild while still paying your mortgage and taxes?
- Will government aid be enough? CDI notes that the main form of federal disaster relief is a low-interest loan you must be able to repay, and FEMA grants for emergency repairs and temporary rent are only for those who do not qualify for loans.
Waiting until after a quake to buy is a mistake, CDI warns. Coverage won’t pay for damage that has already happened, insurers often pause sales after an earthquake, and premiums may be higher when sales resume.
Filing an Earthquake Claim
CDI offers practical claim advice that applies broadly:
- report damage, or suspected damage, as soon as possible;
- make sure your insurer opens a claim and assigns an adjuster;
- have the adjuster inspect hidden areas such as basements, crawl spaces, slabs and raised foundations;
- report additional damage found later and request another inspection; and
- take notes on every phone call, including the name and title of the person, date and time, topics and next steps.
In California, an insurer can deny claims not reported within one year of the inception of the loss, CDI notes, meaning when you first noticed, or should have noticed, the damage. If your claim exceeds the deductible, the insurer subtracts the deductible from its payment. You don’t have to spend that amount before you are paid.
For general claim steps, see our guide on how to file a homeowners insurance claim.
Questions to Ask Your Insurer
- Do you offer earthquake coverage as an endorsement, a separate policy or both?
- What deductible percentages are available for my home, and why?
- What are the limits for belongings and additional living expenses?
- Is building code upgrade coverage available?
- Are retrofit discounts available, and what documentation is needed?
- For condo owners: is loss assessment coverage for earthquake available?
Frequently Asked Questions
Does homeowners insurance cover earthquakes?
No. Standard homeowners, renters and condo policies exclude earthquake damage. Fire that follows an earthquake is generally covered by the homeowners policy.
How do earthquake insurance deductibles work?
They are usually a percentage of the dwelling limit. CEA offers 5%, 10%, 15%, 20% and 25% deductibles, with a 15% minimum for some homes.
Can renters buy earthquake insurance?
Yes. Renters can buy coverage for belongings and additional living expenses.
Does earthquake insurance cover flood or tsunami damage?
No. CDI says earthquake insurance does not cover water damage from outside the home, such as flood, tsunami or sewer backup.
Can retrofitting lower my earthquake insurance premium?
Yes, in many cases. CDI says CEA may give properly retrofitted older homes a discount of up to 25%.
The Bottom Line
Your homeowners policy won’t rebuild your home after an earthquake. If you live in an area with seismic risk, compare earthquake endorsements and policies, pay close attention to the percentage deductible and look at what belongings and living expense limits are available. Retrofitting can make your home safer and may lower the cost. Decide before the ground shakes, because coverage can’t be bought for damage that has already happened.
