Earthquake Insurance

What Does Earthquake Insurance Mean?

Earthquake insurance is a type of property insurance that provides protection against losses resulting from earthquakes. It typically covers both buildings and their contents and, in some cases, also includes coverage for losses caused by volcanic eruptions.

Insuranceopedia Explains Earthquake Insurance

Regions prone to frequent earthquakes have a significantly greater need for earthquake insurance. For instance, in California, it is legally required that insurers offering residential property insurance include coverage for earthquake damage. Homeowners there should compare rates carefully, since premiums vary widely between providers; our guide to the best homeowners insurance in California breaks down those differences. In most other areas, however, the risk of an earthquake is considered low, making such coverage entirely optional. Other higher-risk states, such as Alaska, Hawaii, Idaho, Illinois, and South Carolina, may also consider earthquake insurance a higher priority.

This separate policy exists because standard homeowners policies don’t cover earthquake damage. In fact, homeowners insurance typically excludes most natural disasters like earthquakes and floods, so residents in seismically active areas need to buy a standalone earthquake policy or an endorsement to fill that gap.