Protect your foundation.
Secure your equity.
Your standard homeowners insurance explicitly excludes earthquake damage. Don't risk losing your home's equity while being legally forced to pay a mortgage on a destroyed house.
- Pays to rebuild or repair your home's structure and foundation.
- Covers temporary living expenses (hotels/rent) while you rebuild.
- Protects your personal property from seismic shaking damage.
The "Earth Movement" Exclusion
Nearly 90% of homeowners in high-risk zones mistakenly believe they are covered. By law, standard policies exclude "earth movement," meaning zero payout for quake damage.
Avoid Mortgage Default
If a quake condemns your home, the bank still expects their monthly mortgage payment. An earthquake policy provides the capital to repair the home and keep you solvent.
Check Earthquake Rates
Compare coverage options based on your home's age, foundation type, and seismic zone.
What Does The Policy Cover?
Earthquake insurance isn't meant for tiny cracks in drywall. It is designed to save you from catastrophic financial ruin if a major tremor destroys your home's structural integrity.
Dwelling Coverage
Pays to repair or completely rebuild the physical structure of your home, up to the limit on your standard homeowners policy.
Personal Property
Covers the cost to replace furniture, electronics, and belongings destroyed by shaking or falling debris inside the house.
Loss of Use (ALE)
If your home is deemed uninhabitable (red-tagged), this covers hotel bills, rent, and moving costs while your house is rebuilt.
Building Code Upgrades
If local ordinances require you to rebuild to stricter, more expensive modern building codes, this coverage handles the extra cost.
Seismic Equity Exposure Estimator
Calculate exactly how much of your wealth is exposed to the next major tremor. If your home is destroyed, the bank still demands their mortgage payment.
Home Valuation
What it costs to physically rebuild the structure.
How deductibles work: Unlike auto insurance, earthquake deductibles are a percentage (usually 5% to 20%) of the *rebuild limit*, not a flat dollar amount.
Your Financial Exposure
Unprotected Equity
$300k
Lost instantly if destroyed
Est. Monthly Premium
To protect the foundation
If a massive quake hits, you lose your home and your $300,000 in equity, but you are still legally required to pay the $200,000 mortgage. An earthquake policy prevents this dual catastrophe.
*Educational tool. Premium estimates are illustrative averages based on common geographic multipliers and do not constitute an exact quote. Rates vary wildly based on soil type, home age (retrofitting), and exact zip code.
The "Fire Following" Confusion
Many homeowners think standard insurance covers earthquakes because of the "Fire Following" rule. See exactly where your standard policy stops and earthquake coverage begins.
| Coverage Scenario | Standard Homeowners | Earthquake Insurance |
|---|---|---|
| House collapses from shaking | Explicitly Excluded | Covered |
| Fire caused by quake gas leak | Covered (Fire peril) | Not Applicable |
| Foundation cracks from tremors | Explicitly Excluded | Covered |
| Deductible Type | Flat Amount (e.g., $1,000) | Percentage (e.g., 10%) |
Understanding the Deductible
Unlike standard insurance which has a flat $1,000 deductible, Earthquake policies use a percentage-based deductible.
Percentage of Dwelling Limit
The deductible is calculated as a percentage (usually 5% to 15%) of your *total coverage limit*, not the total damage amount.
Example Calculation
If your home is insured for $300,000 and you have a 10% deductible, you are responsible for the first $30,000 of damage before the policy pays out.
Why it works this way
This prevents insurance companies from paying out millions of tiny claims for hairline drywall cracks, focusing the coverage on true, catastrophic structural survival.
Earthquake & Quake FAQs
Clear answers to help you secure your physical foundation.
What is the California Earthquake Authority (CEA)?
The CEA is a publicly managed, privately funded organization that provides the vast majority of earthquake insurance in California. If you buy a policy through your standard home insurer in CA, it is likely backed by the CEA, though private alternatives do exist with different deductible structures.
Does it cover masonry veneer or brick exteriors?
Usually, no. Standard earthquake policies specifically exclude damage to exterior masonry veneer (brick, stone, or stucco facing). If this falls off during a quake, you pay for it yourself, unless you purchase a specific, expensive endorsement to cover it.
Can I get a discount if my home is retrofitted?
Yes! If you have an older home (typically pre-1980) and you pay to have it seismically retrofitted (bolting the house to the foundation, bracing cripple walls), insurance providers offer significant premium discounts, sometimes up to 25% off.