There’s no getting around it: Earthquake insurance can be expensive, and the more likely you are to need it, the more it will likely cost you. But the exact cost of your policy will vary based on the specifics involved. Below is a look at some of the factors that will impact your earthquake insurance costs:
- Your deductible: In general, a higher deductible leads to lower insurance premiums. Deductibles for this type of insurance policy tend to range from 10% to 20% of your coverage limit.
- Location of the home: If your home is a high-risk location, you should expect to pay more for earthquake insurance.
- Age of the home: If you have an older home, without upgraded safety features to mitigate earthquake damage, then you’ll likely pay more for coverage.
- Number of stories in the home: A home with multiple stories will likely cost more to insure against earthquakes than a single-story home.
- Rebuilding cost: The estimated rebuilding costs have a big impact on your insurance costs. A higher home value and rebuilding cost will likely lead to higher insurance premiums.
As a general range, annual earthquake insurance premiums can fall anywhere from $800 – $5,000, and policy deductibles can be as high as 10% – 20% of your coverage limit. But it’s important to shop around to find the right policy type and price point for your situation.
The Cost Of Earthquake Insurance In California
Since California is a relative hotspot for earthquakes in the United States, residents tend to face much higher earthquake insurance premiums than the rest of the country.
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.
How To Save Money On Earthquake Insurance
If you want earthquake insurance, shopping around can help you save money. Each insurance company has a slightly different method of determining rates, which can help you lock in a lower price when you compare quotes.
Another way to lower your earthquake insurance costs in California is to commit to a seismic retrofit. This strengthens your home’s structure against earthquakes, which can lead to a discount between 10% and 25%. Of course, a retrofit can cost thousands of dollars. But depending on your income and location, you might be eligible for a grant of up to $3,000 to help cover the costs of a seismic retrofit through the California Earthquake Authority.
Additionally, choosing a higher deductible can help you find a lower insurance premium. But you’ll be on the hook for more if an earthquake does actually damage your home.
FAQs
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.
What is a reasonable deductible for earthquake insurance? ›
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.
What percentage of people have earthquake insurance? ›
A poll by the Insurance Information Institute indicated that only 11% of American homeowners had earthquake insurance. Overview: There are several key reasons why many people do not obtain earthquake insurance.
What is the average earthquake insurance premium? ›
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.
Does FEMA pay for earthquake damage? ›
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.
What are the cons of earthquake insurance? ›
Earthquake insurance costs thousands of dollars a year on top of your standard home insurance policy. Earthquake insurance is more expensive in areas located near fault lines that are at higher risk for quakes. The high policy cost and high deductibles mean many homeowners go without earthquake insurance.
Can you claim earthquake insurance on your taxes? ›
You also can't deduct premiums paid out for flood or earthquake insurance. Any disaster relief assistance payments would be considered untaxed income. If you receive money for disaster relief, that income isn't taxed. However, disaster relief insurance premiums aren't tax deductible.
Why don t people buy earthquake insurance? ›
Some argue the high price of deductibles and premiums make earthquake insurance costly – and therefore not worth the money. To figure out if an earthquake insurance policy is worth it for you, start by establishing the potential risk of where you live.
What happens if I don't have earthquake insurance? ›
Without residential earthquake insurance you will be responsible for all repair and/or rebuilding costs. Government disaster assistance, if available, only comes in the form of a small grant or capped loan, which may cover only a portion of your repair costs.
Do most homeowners insurance cover earthquakes? ›
Earthquakes Are a Fact of Life in California
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.
Rates for earthquake insurance depend on several factors, including: The home's location. If your home is an earthquake-prone area, you can expect to pay more.
Can you buy separate earthquake insurance? ›
Your homeowners policy doesn't cover earthquake damage.
Damage to your home from a strong earthquake is not covered by a homeowners insurance policy. In California, a separate policy is needed to protect your home investment and recover from the effects of a major earthquake.
Does umbrella insurance cover an earthquake? ›
No, umbrella insurance does not cover earthquakes because umbrella insurance does not cover your own injuries or property damage. Further, if there are things specifically excluded from your other liability policies, umbrella insurance will not cover them, either.
What is the deductible for earthquake insurance? ›
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.
What is the FEMA earthquake grant? ›
CRMP's Earthquake Soft-Story (ESS) is a seismic retrofit grant program designed to help protect homeowners from earthquake damage. CRMP created ESS to provide California homeowners with grants of up to $13,000 to seismically retrofit their soft-story house to better withstand earthquakes.
Does earthquake insurance cover earth movement? ›
The earth movement (or earthquake) exclusion is found in most property insurance policies (even all risks policies) eliminating coverage for loss resulting from earthquake and usually all other forms of earth movement, except ensuing fire.
What is a good amount for collision deductible? ›
How Much Is a Car Insurance Deductible? The most popular car insurance deductible is $500, but they can range from $0 to $2,000. Most insurers set the default deductible at $500, but it's common to see $250, $1,000 or $2,000 deductibles.
What is a reasonable insurance deductible? ›
Most homeowners and renters insurers offer a minimum $500 or $1,000 deductible, and raising the deductible to more than $1,000 can save on the cost of the policy. Of course, remember that you'll be responsible for the deductible in the event of loss, so make sure that you're comfortable with the amount.
Is $500 collision deductible good? ›
While the $500 deductible level is common, there are other options — each of which alters the rates you'll pay and the financial consequences you'll face in the event of an accident. Because a lower deductible means higher premiums, increasing your auto insurance deductible to $1,000 can save a bit of money upfront.
What is considered high deductible? ›
Per IRS guidelines in 2025, an HDHP is a health insurance plan with a deductible of at least $1,650 if you have an individual plan or a deductible of at least $3,300 if you have a family plan. The deductible is the amount you'll pay out of pocket for medical expenses before your insurance pays anything.
