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Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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If an earthquake damages your home or belongings, your home insurance won’t cover it. Earthquake insurance helps pay to repair or rebuild your home after an earthquake.[1]
California is one of the most earthquake-prone states in the United States.[2] That means the state has unique needs (and rules) when it comes to home insurance. By law, home insurance companies must offer earthquake insurance, but you’re not required to buy it. Still, with the state’s high risk of major earthquakes, buying this coverage can protect you from potentially devastating repair costs.
In this article, we explain how earthquake insurance works, what it covers, and how much you can expect to pay so you can make an informed decision.
Standard homeowners insurance in California doesn’t cover earthquake damage, so you need to buy separate coverage to protect against costly repairs.
In California, earthquake insurance typically costs between $700 and $2,000 annually, though your premiums might be higher if you live near a fault line.
Compare quotes from the California Earthquake Authority and private insurance companies to find the best coverage and price.
Earthquake insurance covers damage from seismic activity. Standard homeowners insurance doesn’t cover earthquake damage, so you’ll need to buy a separate policy or add an endorsement to your existing one.[3]
For example, say you own a $600,000 home in Los Angeles and a 6.8 magnitude earthquake strikes, cracking your foundation and damaging the roof. Without earthquake coverage, you’d be responsible for all repair costs yourself.
With earthquake insurance, you’d be responsible only for the deductible, which is usually 2% to 20% of your home’s insured value, and the policy will cover the rest. This protection can be the difference between recovery and a serious financial hardship.
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Earthquake insurance helps you recover from the costly damage earthquakes can cause to your home and belongings. While coverages may vary from policy to policy, most include coverage in three main areas:
Dwelling coverage: Pays to repair or rebuild your home’s structure, including the foundation, walls, and roof. It also covers attached structures, such as a garage.
Personal property coverage: Reimburses you for damaged or destroyed belongings, like furniture, electronics, and appliances.
Loss of use/additional living expenses: Covers extra costs for temporary housing, meals, and other necessary expenses if you can’t live in your home after an earthquake.
Earthquake insurance can be a financial lifesaver, but it doesn’t cover every possible loss. Most policies exclude:
Fire damage: Your standard homeowners policy typically covers damage from fires caused by earthquakes.
Flood damage: Water damage from broken dams, tsunamis, or other earthquake-related flooding requires separate flood insurance.
Pre-existing damage: Earthquake coverage won’t pay for any structural issues or general wear and tear that existed before the earthquake.
Landscaping and outdoor structures: Earthquake policies typically exclude pools, fences, decks, and gardens, though you might be able to add coverage for these.
Vehicles: Your auto insurance policy’s comprehensive coverage pays for car damage from an earthquake.
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Homeowners insurance companies operating in California must offer earthquake insurance, but you can decline it. You also don’t have to buy it from your current insurance company.
California homeowners can buy earthquake insurance in a couple of ways. You can shop around with private companies or explore state-backed options. The right choice for you depends on your budget, your home’s value, and your risk tolerance. Let’s take a closer look at your options.
The CEA is a not-for-profit, privately funded organization that sells earthquake insurance to homeowners in California through participating insurance companies. To get an earthquake policy through the CEA, you must already have home insurance, and you must purchase the policy with the same insurer.
Insurance through the CEA covers damage to your home, personal belongings, additional living expenses, building-code upgrades, and emergency repairs, up to your policy limits. The CEA also provides flexible deductibles and coverage limits to suit different needs.[4]
Some private insurance companies offer earthquake coverage with different terms from the CEA, such as lower deductibles, higher coverage limits, or broader protection for things like pools and detached structures. You’ll pay more for these policies, but they offer more customization based on your needs.
Both options help protect you from the steep financial impact of earthquake damage. But it’s a good idea to compare coverage details and premiums before deciding.
In California, earthquake insurance typically costs between $800 and $1,500 per year, depending on your home’s location, coverage choices, and other factors. But rates can fall below or above the range based on your situation.
Your premiums will usually be higher if your home is near a fault line, sits on sandy soil, is built with brick or masonry, or has a high replacement value. For example, in San Francisco, which sits on top of an active fault line, premiums can run anywhere from $2,000 to $5,000 per year.
Earthquake policies have percentage-based deductibles, ranging from 2% to 20% of your home’s replacement cost. Choosing a higher deductible can lower your premiums, just make sure you can handle the higher up-front costs if an earthquake strikes.
Rates can vary widely, so it’s a good idea to shop around to find an option that balances price and protection.
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Deciding whether to buy earthquake insurance comes down to assessing your risk and your ability to cover repairs out of pocket. Start by checking the U.S. Geological Survey (USGS) earthquake hazard maps to see how close you are to fault lines.
Also consider your home’s construction, age, and foundation type. Some materials and designs are more earthquake-resistant than others. Finally, think about your financial resources. If a major earthquake could cause damage you couldn’t afford to fix, earthquake insurance may be worth the cost.
California doesn’t require homeowners to buy earthquake insurance. But state law requires insurance companies offering homeowners insurance policies to also offer earthquake coverage every other year.
Also, if you have a mortgage and own a home in a high-risk area, your lender might require you to buy a policy.[5]
You can buy earthquake coverage in California in just a few steps.
Gather your home details. Most insurance companies will ask for details like the year built, construction type, and square footage. Note whether you’ve made any retrofits, like bolting the house to the foundation, bracing the chimney, or installing automatic gas shut-off valves, as these can lower your premiums.
Call your home insurance company. Ask your insurer if it sells CEA policies or its own earthquake policy.
Shop quotes. Compare your insurance company’s offer to quotes from other private companies. Review limits and inclusions as well as price.
Pick coverages. A standard policy includes coverage for the dwelling, contents, and loss of use. Consider other options you might need, like coverage for detached garages or a pool, breakable valuable possessions like china and glassware, and exterior masonry veneer.
Choose a deductible. Most CEA earthquake deductibles range from 5% to 25% of your home’s insured value. Higher deductibles can keep your premiums low, but they raise your out-of-pocket costs after a claim.
Select a policy and confirm timing. Once you choose a policy, confirm when it goes into effect. Some insurance companies pause sales of earthquake insurance right after an earthquake. When you’re ready, ask the insurance company to bind coverage. Then, pay the premium, and save your policy documents.
See quotes from companies that offer earthquake coverage.
Earthquakes are a fact of life in California, but deciding whether to buy earthquake insurance can be tricky. Here are the answers to some common questions to help you weigh your options.
Yes. If you live near a fault line or couldn’t afford major repairs yourself, it’s worth considering. Without coverage, repairing earthquake damage could cost you hundreds of thousands of dollars out of pocket.
The annual premiums for earthquake insurance typically range between $800 and $1,500, but rates vary widely based on your home’s value, location, construction, and your choice of deductible.
Yes. Insurance companies that sell homeowners insurance in California must offer earthquake insurance to their customers every other year. Insurers can offer coverage through the California Earthquake Authority or a private program. Policies may be temporarily unavailable immediately after an earthquake.
If an earthquake destroys your home, an earthquake policy can help rebuild it, replace damaged belongings, and cover temporary housing costs up to your policy limits and after subtracting your deductible. Without this coverage, you’ll have to pay for repairs on your own.
Yes. State Farm sells earthquake coverage in California through the California Earthquake Authority.You can find a list of participating insurers on the CEA website.
Yes. GEICO partners with Arrowhead General Insurance Agency to provide earthquake coverage to its homeowners insurance customers.
Common drawbacks to buying earthquake insurance in California include high premiums, large deductibles, and limited coverage for certain items or structures. Still, the protection can be invaluable if a major earthquake causes severe damage to your property.
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Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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