Earthquake insurance is a form of property insurance that protects against losses from earthquakes. It typically covers buildings and the contents inside. Sometimes, these policies cover losses from volcanic eruptions as well.
Regions with frequent earthquakes have a much greater need for earthquake insurance. In fact, in California, it is mandated by law that insurers offering residential property insurance include coverage for earthquake damage in their policies. However, in most other areas, the threat of an earthquake is considered so low that such coverage is completely optional. Other states, such as Alaska, Hawaii, Idaho, Illinois, and South Carolina, are considered higher risk for earthquakes. Thus, earthquake insurance may be a higher priority in these areas.
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