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Buy earthquake insurance with SelectQuote and protect what matters to you.
Earthquake insurance offers additional protection beyond an existing home insurance policy. If you live in an area prone to earthquakes or landslides, this policy helps replace what matters to you.
Earthquake Insurance
Did you know that a standard home insurance policy doesn’t offer protection in the event of land movement, such as an earthquake or landslide? If you live in an area that is prone to these types of events, you’ll want to secure additional coverage, like earthquake insurance, that can help repair or replace damage due to these catastrophes. Understanding what this type of coverage is and what it includes can help you make an informed decision regarding your homeowners insurance policy and add-ons.What is earthquake insurance?
Earthquake insurance is a specific type of insurance policy that can help pay the cost of repairs or replacement for property that is damaged after an earthquake or other land movement event. While standard homeowners insurance policies typically exclude coverage for earthquakes, this additional coverage is essential for homeowners living in earthquake-prone areas. Most companies stopped insuring earthquakes in the 1990s as projections showed a single major earthquake event could bankrupt them. These companies now offer two types of insurance coverage that can help offset the cost of damages: earthquake insurance and parametric insurance.- Earthquake insurance can cover “pure loss” in the aftermath of an earthquake. The insurance company will assess the value of any lost items and reimburse for the specified amount.
- Parametric insurance insures policyholders against specific events. They use set criteria (parameters) to determine the cost of damage.
How much does earthquake insurance cost?
The cost of earthquake insurance varies by location and other factors. Those who live close to significant fault lines or fracking sites often pay higher premiums. California, which is prone to frequent earthquakes, offers a calculator to help determine earthquake insurance premiums.What does earthquake insurance cover?
Earthquake policies have specific guidelines for what they do and do not cover. Most of them, however, have the following stipulations:Covered by Earthquake Insurance | Not Covered by Earthquake Insurance |
|---|---|
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Covered by Earthquake Insurance
- Repairs to the home and other attached structures, including a garage
- Personal belongings like clothing and furniture
- Additional living expenses, including hotel bills, if the home is uninhabitable after an earthquake
Not Covered by Earthquake Insurance
- Fires caused by earthquakes, which are already covered under a standard policy
- Vehicle damage is covered under a comprehensive auto policy
- Flooding, which requires flood insurance
- Sinkholes, which often require separate coverage
- Masonry, including brick or stonework
Earthquake insurance may also include coverage for additional structures, such as carports or toolsheds. Debris removal may or may not be standard. Other coverages can be added, such as:
- Building code upgrades
- Land restoration
- Emergency repairs
Why do I need insurance coverage if I don’t live near fault lines?
As mining and fracking operations become more frequent, formerly stable parts of the country now encounter increased seismic activity. This means that even if you don't live near fault lines, it's still important to consider earthquake insurance coverage. The financial impact of earthquake damage can be significant, regardless of the proximity to fault lines. Without earthquake insurance, you would be solely responsible for covering the costs of repairing or rebuilding your home, replacing personal belongings, and covering additional living expenses during the recovery period.Earthquake Insurance FAQ
Customers typically ask the following questions related to earthquake insurance.What damage is excluded from earthquake insurance?
Earthquake insurance does not cover all damage after an earthquake. Some common exclusions to the policy include:
- Fires
- Vehicle damage
- Flooding
- Sinkholes
- Exterior stonework for the home’s veneer
Do renters need earthquake insurance?
Much like home insurance, renters insurance does not typically cover earthquake damage. Renters can still purchase additional earthquake insurance to help cover the costs associated with replacing or repairing their belongings. While the landlord is typically responsible for insuring the building structure, earthquake insurance for renters, also called renters earthquake coverage, can provide essential protection for the renter's personal property and living expenses. This means that without renters earthquake insurance, renters would bear the financial burden of replacing or repairing their personal possessions if they were damaged in an earthquake.
Where is earthquake insurance commonly purchased?
Earthquake insurance is typically purchased in places like California, Washington, and Missouri. Other markets, including Idaho, Arkansas, and Alaska, may be at high risk for earthquakes.
Why are earthquake insurance deductibles so expensive?
People tend to pay a lot for earthquake deductibles because the damages that result from these events are catastrophic in nature. Earthquakes can cause widespread and severe damage to buildings and infrastructure, leading to significant financial losses. The high deductibles help insurance companies manage the potential magnitude of claims that could arise from a major earthquake event. This amount typically falls between 10% and 20%.
Shop for earthquake insurance and save with SelectQuote.
Earthquake insurance may not be the first policy you think about when shopping for home insurance. But for homeowners who live in vulnerable areas and want to protect themselves from financial responsibility after this type of event, it can be worth it. Contact SelectQuote today to learn how we can help you compare earthquake policies from several companies at once and find the rate that works for you.We do the shopping. You do the saving.
