Earthquake insurance, explained
The short version: a standard homeowners policy does not cover earthquake damage. In California you buy a separate policy, and the way its deductible works is unlike any other insurance you own — it is a percentage of your dwelling limit, not a fixed dollar amount.
This page covers California in detail, because that is where most of the market is and where a state-run body publishes its terms openly. Other states are noted at the end.
Why your homeowners policy excludes it
Earthquake losses are correlated: a single event damages tens of thousands of homes in the same week, in the same place. Ordinary insurance works by pooling risks that do not happen together. So earthquake cover is sold separately, priced separately, and in California it is largely provided through a body created for the purpose.
How the California Earthquake Authority works
The California Earthquake Authority (CEA) is a publicly managed, privately funded body. You do not buy from CEA directly. CEA works with participating residential insurers, and only Californians whose home is already insured by one of those companies are eligible to buy a CEA policy. You add it through your existing home insurance agent, and you do not have to wait for your renewal date.
There are two policy shapes:
- Standard Homeowners — all your coverages sit under one deductible.
- Homeowners Choice — separate deductibles for the dwelling and for personal property, and you may take dwelling cover only and decline the rest.
The deductible is a percentage, and that surprises people
CEA deductibles are 5%, 10%, 15%, 20% or 25% of your Coverage A and B limit — not of the claim, and not a flat sum. On a home insured for $600,000, a 15% deductible is $90,000 of damage you carry before the policy pays anything. That is the single most important number to understand before buying, and it is why earthquake policies are often described as cover for a catastrophe rather than for cracked plaster.
Two restrictions on the cheapest options, which CEA states directly: the 5% and 10% deductibles are not available if your Coverage A dwelling limit is above $1,000,000, or if the house is frame construction built before 1980, is not on a slab foundation, and has no verified retrofit. If you are in that last category, a retrofit changes what you are allowed to buy, not just what you pay.
What is actually covered
| Coverage | Deductible | Limits |
|---|---|---|
| Dwelling, and extensions to it (A & B) | 5–25% of the A & B limit | Must match your homeowners policy's Coverage A limit |
| Personal property (C) | Included under Standard; a separate 5–25% under Choice, waived if the dwelling deductible is met | $5,000 or $25,000, with $500 included for some breakables |
| Loss of use (D) | None | $1,500 to $100,000 |
| Emergency repairs | None on the first $1,500 | Above $1,500, up to 5% of the A & B or C limit |
| Building code upgrade | Paid once dwelling damage exceeds the deductible | $10,000 included; $20,000 or $30,000 available |
Coverage and deductible structure as published by the California Earthquake Authority, read 26 September 2026. Exclusions and special limits apply and the policy form governs — CEA publishes sample policies, linked below, and they are worth reading before you buy.
What sets the premium
CEA states that premiums are determined by your home's age, foundation type, construction type, roof type, and location risk data including proximity to a fault and soil type. Two houses on the same street can price differently on foundation type alone. CEA publishes a premium calculator, so you can get a figure for your own address without talking to anyone.
The retrofit discount
CEA offers a premium discount of up to 25% for older houses that have been properly retrofitted. Grants toward the work are available through the Earthquake Brace + Bolt and Earthquake Soft-Story programs. What the work involves, and what the grants are worth →
Deciding
We are not licensed to advise you, and this page is not advice. But the questions that actually decide it are these, and they are answerable:
- Could you absorb the deductible? Work out the actual dollar figure for your dwelling limit before anything else.
- How much equity is in the house? The case for cover is strongest where a total loss would be financially unrecoverable.
- What does the shaking hazard look like at your address? The USGS National Seismic Hazard Model publishes this, and it is not uniform across a city.
- Is the house pre-1980 wood frame on a raised foundation? If so, a retrofit affects both your premium and which deductibles you may choose.
Outside California
Washington, Oregon, Nevada, Utah and other states have no equivalent state body; earthquake cover is bought as an endorsement or a standalone policy from private insurers, and percentage deductibles are still normal. Ask your existing insurer first — adding an endorsement is usually simpler than a new policy. In Washington and Oregon the Cascadia subduction zone is the driver, and it is a different kind of hazard from a California strike-slip fault: longer shaking, wider area.
Sources
Last checked:
- Coverage options and deductibles for homeowners — California Earthquake Authority
- Does homeowners insurance cover earthquakes? — California Earthquake Authority
- CEA participating insurers — California Earthquake Authority
- Premium calculator — California Earthquake Authority
- National Seismic Hazard Model — USGS