How Much Does Earthquake Insurance Cost in California? - Quake Insurance (2024)

Determining the cost of earthquake insurance, such as the offerings provided by Geovera, involves a complex assessment of various factors to ensure that policyholders receive appropriate coverage while maintaining the financial viability of the insurance company.

Earthquake insurance is designed to provide financial protection in the event of seismic activity causing property damage or loss, which is not typically covered under standard homeowners’ insurance policies. Here are some key factors that influence the cost of earthquake insurance:


The seismic activity and earthquake risk of the insured location play a significant role in determining the cost of earthquake insurance. Areas prone to frequent and severe earthquakes, such as the West Coast of the United States, are likely to have higher insurance premiums due to the increased likelihood of claims.

Property Value

The value of the insured property is another critical factor. Higher-valued properties will generally have higher insurance premiums, as the potential cost of repairing or replacing the property in the event of an earthquake is greater.

Building Type and Age

The construction type and age of the building also impact the cost of earthquake insurance. Older buildings, especially those not built to current seismic codes, may have a higher risk of damage during earthquakes, leading to higher premiums.


The deductible is the amount the policyholder must pay out of pocket before the insurance coverage kicks in. Choosing a higher deductible can lower the premium, but it also means the policyholder will need to pay more in the event of a claim.

Coverage Limits

The coverage limits of the policy, or the maximum amount the insurance company will pay in the event of a claim, influence the premium cost. Higher coverage limits will result in higher premiums.

Soil Conditions

The type of soil on which the property is situated can affect how the ground responds to seismic activity. Properties on unstable or liquefiable soil may face greater risks, leading to higher insurance costs.

Seismic Zone

Different regions are classified into seismic zones based on their earthquake risk. The higher the seismic zone, the more likely an earthquake is to occur, which can impact insurance costs accordingly.

Mitigation Measures

If a property has undergone seismic retrofitting or other structural improvements to reduce earthquake damage, this could result in lower insurance premiums, as the risk of damage is reduced.

Insurance Company’s Assessment

Insurance companies like Geovera will use their proprietary models and data to assess the overall risk associated with the insured property and its location. This assessment will consider the aforementioned factors along with other relevant information.

On average, earthquake insurance premiums in California range from 1% to 5% of the property’s insured value. For instance, if your home is insured for $500,000, your annual earthquake insurance premium may fall within the range of $5,000 to $25,000.

What Should Earthquake Insurance Cost in California?

Determining what a reasonable earthquake insurance policy should cost involves considering the risks specific to your property and personal preferences. While everyone seeks the cheapest earthquake insurance, it’s essential to balance cost and adequate coverage.

Consider factors such as the earthquake risk level in your area, the value of your property, and your financial capacity to determine the most suitable coverage for your needs. A reputable provider like Quake Insurance by Geovera can help tailor a policy that fits your budget and offers comprehensive protection.

How Much Does Earthquake Insurance Cost in California? - Quake Insurance (1)

What Percentage of Californians Buy Earthquake Insurance?

Despite the significant earthquake risk in California, only a small percentage of homeowners and renters choose to invest in earthquake insurance. According to California’s Department of Insurance, as of 2021, about 10% – 15% of Californians had earthquake coverage. The relatively low percentage can be attributed to various factors, including perceived cost, lack of awareness, and an assumption that government assistance will cover damages.

How Much Extra Does Earthquake Insurance Cost?

As mentioned earlier, earthquake insurance premiums typically range from 1% to 5% of the property’s insured value. For most homeowners or renters, this equates to an additional annual cost of several thousand dollars. The extra expense will depend on the abovementioned factors, including property value, location, coverage level, and deductible.

While earthquake insurance is not mandatory in California, it provides peace of mind and financial security during seismic events. Reputable insurance providers like Quake Insurance by Geovera offer affordable earthquake insurance policies tailored to your needs. Protecting your property and belongings should remain the primary motivation when considering earthquake insurance.

Want to get a fast and easy quote for your property? See the best options for earthquake insurance for your property in less than a minute.

How Much Does Earthquake Insurance Cost in California? - Quake Insurance (2024)


How Much Does Earthquake Insurance Cost in California? - Quake Insurance? ›

The Cost Of Earthquake Insurance In California

How much does earthquake insurance in California cost? ›

Earthquake insurance costs an average of $3.54 per thousand dollars of coverage in California, which translates into an annual rate of $1,770 for a single-family home with a $500,000 replacement cost.

Is California Earthquake Authority insurance worth it? ›

Without earthquake insurance coverage in California, you will be responsible for 100 percent of the cost to repair your home, and replace your belongings after a damaging earthquake strikes. Given the potential cost to repair shake damage, the cost of a CEA policy may be an easy expense to justify.

How is earthquake insurance calculated? ›

The cost of earthquake insurance is based on a number of things, such as the way the home is made and the kind of soil under it. The cost is usually higher for: Older homes. Homes built of brick or masonry.

How much is AAA earthquake insurance? ›

AAA earthquake insurance is available to renters and homeowners in California. The average policy costs approximately $850 per year. Your total premium will depend on various factors, including the age and location of your home.

Can I buy earthquake insurance separately? ›

Earthquake damage to your California home is not covered by a homeowners insurance policy. Earthquake home insurance must be added by buying a separate policy. CEA is not-for-profit. Our insurance rates are based on the best available science and research, not profit.

Is earthquake insurance extra? ›

Standard homeowners insurance typically does not include coverage for earthquake damage. Some insurers offer separate earthquake coverage, particularly in areas prone to tremors. Although homeowners insurance does not generally cover earthquakes, it may cover fire damage resulting from an earthquake.

How many people buy earthquake insurance in California? ›

Despite experiencing 90% of the country's earthquakes, only 10% of California's residents have earthquake insurance.

What deductible should I get for earthquake insurance? ›


The deductible for earthquake insurance is usually 10%–20% of the coverage limit.

What are the cons of earthquake insurance? ›

Even with coverage, you might not receive sufficient compensation to fully repair or rebuild your property if it sustains extensive damage. Also, Earthquake insurance may not cover all types of damage. Exclusions could include pre-existing damage, certain types of personal property, and non-earthquake-related losses.

Does earthquake insurance cover foundation cracks? ›

Foundation damage and repair typically fall under the dwelling coverage portion of your insurance policy because the damage is to the structure of the home. Check out our Best Homeowners Insurance Companies of 2024 rating.

Can you claim earthquake insurance on your taxes? ›

Is earthquake insurance tax deductible? Generally, you can't deduct the cost of insurance you buy for your primary residence. If you use your property for rental income, however, you may be able to deduct the cost of insurance.

How long is the waiting period for earthquake insurance? ›

If there's been a recent earthquake, most insurers won't sell any new earthquake insurance for 30 to 60 days. If you are considering a policy, the ideal time to buy the coverage is before there's an earthquake. Expect aftershocks, which can cause more damage in the hours, weeks, days or even months after the quake.

How much is California earthquake insurance? ›

The Cost Of Earthquake Insurance In California

On average, homeowners in California pay an average of $739 per year for earthquake insurance. However, your exact costs can vary widely based on the amount of coverage you need, the home's risk and other factors.

Does FEMA pay for earthquake damage? ›

FEMA offers various grants to assist individuals and households affected by disasters. While FEMA does not typically provide direct financial assistance for earthquake damage, it may offer grants to help homeowners or renters elevate their homes to reduce future earthquake risks.

Does farmers homeowners insurance cover earthquake damage? ›

A: Your home insurance policy covers many natural disasters and weather events, including wind, hail, lightning strikes and wildfires. However, it does not cover damage caused by floods or earthquakes. You would need a separate policy for each of these perils.

What percentage of Californians have earthquake insurance? ›

Despite experiencing 90% of the country's earthquakes, only 10% of California's residents have earthquake insurance. Only 11.3% of Washington's residents were covered in 2017 despite having the second-largest market in the seismic space.

Is earthquake insurance mandatory in California? ›

Though California has nearly 16,000 known earthquake faults, you are not required by state law to carry earthquake insurance. Your basic homeowners and renters insurance policies do not cover earthquake damage.

What happens if your house is destroyed by an earthquake? ›

Homeowner's insurance policies exclude damage caused by earthquakes. This means that if your house is damaged or destroyed in an earthquake, your standard homeowner's policy will not pay to repair or replace it. In order to be covered for earthquake damage, you must purchase a separate earthquake insurance policy.

Top Articles
Latest Posts
Article information

Author: Tuan Roob DDS

Last Updated:

Views: 6309

Rating: 4.1 / 5 (62 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Tuan Roob DDS

Birthday: 1999-11-20

Address: Suite 592 642 Pfannerstill Island, South Keila, LA 74970-3076

Phone: +9617721773649

Job: Marketing Producer

Hobby: Skydiving, Flag Football, Knitting, Running, Lego building, Hunting, Juggling

Introduction: My name is Tuan Roob DDS, I am a friendly, good, energetic, faithful, fantastic, gentle, enchanting person who loves writing and wants to share my knowledge and understanding with you.