2024-01-01 · specialty, earthquake

Earthquake Coverage

Overview

Standard homeowners and renters policies typically exclude earthquake damage. Earthquake insurance fills that gap by covering structural repairs, personal property loss, and in some cases additional living expenses if your home is uninhabitable after a quake.

Core coverages

• Dwelling coverage: repairs to your home’s structure and foundation.
• Personal property: replacement of damaged belongings.
• Loss of use: temporary housing and living expenses during repairs.
• Detached structures: garages, sheds, and fences if included.

Common exclusions and limitations

• Earth movement endorsements may exclude landslides or sinkholes.
• Masonry and older homes may face higher deductibles or limits.
• Flooding after an earthquake is typically not covered.
• High deductibles: percentage-based deductibles are common.

Cost drivers

• Seismic zone and soil type: higher risk areas cost more.
• Home construction and age: retrofitted homes may qualify for discounts.
• Coverage limits and deductibles: higher limits increase premium.
• Replacement cost value: larger homes carry higher premiums.

How to compare policies

1. Confirm deductible structure (percentage vs. flat dollar amount).
2. Check coverage for rebuilding to code in your area.
3. Review personal property limits and sublimits for valuables.
4. Ask about retrofit discounts for seismic improvements.

Tips for better coverage

• Consider a seismic retrofit to lower risk and premiums.
• Inventory your belongings for easier claims.
• Pair with flood insurance if you are in a flood-prone region.

Frequently asked questions

Is earthquake coverage mandatory? It is typically optional, but lenders in high-risk areas may require it.

How do earthquake deductibles work? They are usually a percentage of the dwelling limit, so out-of-pocket costs can be significant.