Do I need earthquake insurance?

Do I need earthquake insurance?

May 30, 2023

Like most questions related to insurance, there isn’t an easy answer to this one. It’s really a personal question, but we can help you come to your own conclusion with some practical information about earthquake insurance.  

Earthquake insurance isn’t required by your lender or by the state. But there are some states, like California, where earthquakes are more likely, more frequent, or more powerful. And most people know this so they prepare for their physical safety, but not many people think about planning for the financial recovery that might be needed. One moderate-to-large sized earthquake can be devastating enough to do some costly damage to your home. That’s where insurance makes a difference. So, if you live in California, the decision to get earthquake insurance should be carefully considered. 

Let’s be clear: your homeowners insurance doesn’t cover “earth movement,” including damage directly caused by earthquakes. So, if you don’t have earthquake coverage, then you’ll have to cover any earthquake damage out of pocket. You have to ask yourself if you could afford to rebuild your home and replace your personal belongings without insurance. If the answer is no, then earthquake insurance is likely right for you.  

Earthquake policies are customizable. For example, if your primary concern is rebuilding your house and protecting your equity, you can purchase dwelling coverage only and forgo other coverages. A wide range of deductible options are also available to choose from.  We'd be happy to walk you through the coverage options so you can pick the protection that best suits your needs. 

This blog post is not offered, and should not be relied on, as insurance advice. You should consult an insurance agent for advice in specific situations.