How Much Is Earthquake Insurance in California? [Price Guide]

California is the most earthquake-prone state in the continental United States, averaging about 10,000 tremors annually in the southern part of the state alone. Since a standard homeowners insurance policy doesn’t protect against earthquake damages, homeowners in the Golden State need to consider buying earthquake insurance at an added cost. But just how much is earthquake insurance in California, and what does it cover?

Here’s a look at what earthquake insurance in California costs, exactly what’s covered, and how you can shop around for the right policy. 

Key takeaways

• There are 32 known fault lines throughout California, making it the second most seismically active state in the U.S. (behind Alaska).
• Earthquakes in California can occur at any time of year without much warning, making them a substantial risk for residents and homeowners. 
• In any given year, there are usually two or three notable earthquakes that cause notable structural damage to buildings. 
• Damage from earth movement (such as earthquakes and mudslides) is excluded from standard homeowners insurance policies.
• If you live in a state with high seismic activity, like California, you should consider buying earthquake insurance coverage to protect your home adequately.

Is earthquake insurance required in California?

There is no state or federal law requiring you to purchase earthquake insurance coverage in California. However, if you still have a lien on your home, your mortgage lender may require you to buy earthquake coverage to adequately protect the property, especially if you live in an area prone to serious seismic events.

Even if you aren’t required to buy this coverage, it may still be wise to consider it as a homeowner with an asset to protect. That’s because standard homeowners insurance in California (and other states) excludes damage caused by earth movement events, like earthquakes or mudslides. With the prevalence of both of these in the Golden State, supplementing your basic home insurance policy would ensure that your property is always protected.

Occasionally, earthquake coverage can be added to an existing policy for an added fee. For others, you may need to look into buying a separate earthquake policy from a provider in your area. Shopping around can help you determine your costs for earthquake insurance in the state of California, as well as find the right carrier for your specific needs.  

How expensive is earthquake insurance in California?

Since earthquake coverage isn’t included in your typical home insurance policy coverage, it is an added annual fee you’ll need to keep in mind. There is also a wide range of costs for earthquake insurance in California: Prices can vary from a few hundred dollars per year to multiple thousands. 

So, what is the average cost of earthquake insurance in California? It’s $3.54 per $1,000 in coverage or roughly $2,478 for a $700,000 home. Some carriers may charge notably less (or more), though.

How much does earthquake insurance cost in California?

Living along a fault line puts you at a higher risk for earthquake damage. Considering California is home to 32 known fault lines, they’re hard to miss unless you live away from the coast or toward the northern side of the state. And if you do live along or between faults, you can expect to pay more for your specialty earthquake insurance coverage. 

You can see this clearly when you look at a map and a list showing how much is earthquake insurance in southern California. The average earthquake insurance cost in San Diego, for instance, is about $3 per $1,000 in coverage, comparable to the average earthquake insurance cost in Los Angeles. To insure a home worth $700,000 there, you could expect to pay $2,100 in annual premiums. 

Coastal cities, even further north, can be just as costly. To protect the same home in Alameda would cost you $6.50 per $1,000 in coverage, on average… that means around $4,550 annually, on top of your homeowners premiums. 

The cheapest earthquake insurance in California can be found more inland and further north. If you buy a home in a relatively safe area, like Sacramento, you’ll find that coverage costs less on average. In fact, the cheapest premiums are located in Fair Oaks, averaging $2.46 per $1,000 in coverage, or about $1,722 per year. 

What factors affect the average cost of earthquake insurance in California?

California earthquake insurance rates — just like standard homeowners insurance rates — depend heavily on the individual factors of each policy. Some are within your control, while others are based on your location, your chosen insurance company, and more. This means answering the question, "What does earthquake insurance cost in California?" varies from person to person.

Here are some of the biggest factors impacting CA earthquake insurance costs and why they matter.

Where you live

Your ZIP code influences all of your home insurance rates and is especially important when determining how likely your property is to be damaged by an earthquake. If you live along a major fault line, for example, your home is at greater risk than if you live away from a potential epicenter. Since California has 32 fault lines, many of which run parallel, there’s a good chance your home sits on and/or between two or more, putting it at even greater risk of earthquake damage.

How much your home is worth

The greater your home’s value, the more you can expect to pay for its insurance coverage. This is true for any type of home insurance coverage, including earthquake insurance. So earthquake insurance in San Diego (where the average earthquake insurance price for California homeowners is about $3 per $1,000 protected) would cost about $1,800 per year for a $600,000 home or $2,700 per year for a $900,000 home.

Specifics of your home

Earthquake insurance will pay to repair, rebuild, or replace your home if it’s damaged by an eligible event. If your home has upgraded features such as high ceilings, an intricate roof, high-end fixtures, oversized doors, custom flooring, etc., you can expect your premiums to reflect that.

The deductible you choose

Your earthquake insurance deductible is the portion of a covered claim you’re willing to pay upfront before your insurance company kicks in to cover the rest. The higher your deductible, the more risk you’re willing to take on, and the lower your premiums will often be as a result.

In general, earthquake insurance deductibles are much higher than homeowners insurance deductibles. While a standard home deductible may be as low as 1% or 2% of your home’s value, earthquake deductibles are often 10% to 20% of the home’s covered value. So, if your home is insured for $500,000, your earthquake deductible may be as high as $50,000 to $100,000. 

The coverage options you pick

You may be able to choose the coverage options on your earthquake policy, opting to cover some combination of your dwelling, personal belongings, and other structures (like a detached garage or deck). Some policies may offer both actual cash value (ACV) coverage and replacement cost value (RCV) coverage, which can also impact your premiums. You can also opt into things like loss of use coverage, which will pay to put you in a hotel or rental until your home is repaired following a covered event. 

Whether you’ve filed claims in the past

Your previous claims history can affect your coverage cost, too. If your location is prone to tremors, your home has incurred earthquake damage before, or you’ve simply filed past claims against your insurance carrier, you may pay more in premiums when buying a new earthquake policy.

Personal factors

Lastly, several personal factors play into your cost of home coverage, including earthquake insurance. Carriers will look at your age, gender, and even credit history. While these factors won’t determine whether you’re approved for a new policy, they can affect the price you pay.

What does California earthquake insurance cover?

Each California earthquake insurance policy may be different from the next, as your coverage options are determined by how you build your policy. In general, though, these policies cover some combination of the following:

• Dwelling coverage — This portion of your policy covers the actual building that is your home, including any permanent fixtures. This means your walls, roof, ceilings, floors, HVAC system, furnace, plumbing, electrical wiring, cabinets, etc… essentially, anything that would stay with the home if you packed up and moved out. Dwelling coverage also extends to attached structures such as a front patio or attached garage.*
• Personal property coverage — This portion of your policy pays to replace the things you own if they’re damaged or destroyed. It extends to your furniture, small appliances, clothing, bedding, home decor, electronics, and the like. If you would pack it up and take it with you during a move, it usually falls under the personal property insurance umbrella. 
• Other structures coverage — If you have structures on your property that aren’t attached to your home, they usually fall under other structures coverage. This coverage is intended for things like fences, detached garages, sheds, gazebos, a pool, a large deck, a guest house, and more.
• Loss of use coverage — Your policy may also help cover additional living expenses if you are displaced following an earthquake. This loss of use coverage is intended to pay for hotel stays or a rental property while your home is being repaired or rebuilt. It may also cover auxiliary expenses like restaurant meals, laundry service, etc., while you’re displaced.

*Some earthquake policies exclude masonry, such as the brick veneer on the outside of your home. This exclusion will be disclosed upfront and will usually reduce your premiums, but it is an important thing to note.

Unlike a standard homeowners insurance policy, an earthquake policy doesn’t include personal liability insurance coverage. It also doesn’t cover the perils your home insurance policy protects against, such as fire or water damage. However, Neither standard home nor earthquake insurance covers pre-existing damages, typical wear and tear, or flood damage.

Tips on how to get California earthquake insurance and prepare for potential damage

You already know how important it is to have homeowners insurance coverage to protect your property (and finances) against damage or loss. If you live in an area prone to earthquakes, buying some form of catastrophe insurance — like an earthquake policy — can further protect your home against damages that would otherwise be excluded.

Finding the right earthquake insurance policy for you depends on where you’re located, the details of your home, and even your personal budget. Here are some tips for finding the best policy at the best possible price:

• Ask your current carrier. In the state of California, earthquake and/or catastrophe coverage can be added to your existing homeowners insurance policy as an endorsement (also known as a rider). This is often more cost-effective and also streamlines your coverage by keeping everything with the same carrier. You may qualify for discounts, too.
• Shop around. If your home insurance company doesn’t offer earthquake coverage or it’s too costly to add, spend some time shopping around for other options. According to the California Earthquake Authority (CEA), there are 20 insurance companies currently participating in the residential insurance program. There are also a few carriers that do not participate in the CEA program that offer standalone coverage.
• Ask about discounts. You may be eligible for certain premium discounts that can save you money on your premiums. Common discounts include those for bundling policies with the same carrier, having no recent claims, buying a new home or one with certain structural improvements, or even being affiliated with certain organizations (like the military or certain alumni associations). It never hurts to ask if there’s a discount for which you qualify!
• Adjust your policy coverages. There’s a fine balance between overinsuring and underinsured your property, both of which can impact your premiums. If you need to make your earthquake coverage fit your budget, consider which coverages you can adjust. You can also raise your deductible to lower your premiums (just be sure you can afford that deductible if your home is destroyed!).

Still have questions?

Want to know even more about earthquake insurance in California and what it protects? Here are some of the most frequently asked questions about this specialty coverage.

Is earthquake insurance necessary for renters in California?

As a renter, homeowners insurance coverage (including earthquake insurance) for the dwelling you live in isn’t your responsibility. However, your personal belongings could still be damaged or destroyed in a catastrophic event, so buying a renters policy may still be wise. Many carriers in the CEA program offer renters earthquake insurance, which only offers coverage for personal belongings and/or loss of use. If your stuff is damaged or destroyed, or you’re displaced following an earthquake, this lower-cost coverage can help cover the financial damages.

How can I reduce the cost of earthquake insurance in California?

The average cost of earthquake insurance premiums in California is about $3.54 per $1,000 protected, which can add up to thousands of dollars per year for the typical homeowners. To save money on your premiums, shop around for coverage from the providers participating in the CEA program. Ask how much it would be to add earthquake coverage to your current homeowners policy and whether any discounts are available. You can also adjust your coverage limits and deductibles to reduce your premiums further.

How much earthquake insurance do I need to purchase?

You should buy enough earthquake insurance coverage to repair, rebuild, or replace your home if it were to be damaged or destroyed. This is often higher than your home’s appraised value or mortgage loan balance. You should also ensure that you have enough coverage to replace your belongings in the case of a total loss and help pay for displacement expenses if you’re forced to move out unexpectedly.

What exactly is the California Earthquake Authority (CEA)?

The California Earthquake Authority (CEA) was formed in 1995 by the state legislature in response to the unexpected — and disastrous — Northridge earthquake the previous year. This agency aims to provide earthquake insurance to at-risk homeowners through participating carriers throughout the state, giving individuals a resource for shopping and buying coverage that they need to protect their property.

Is earthquake damage in California covered by car insurance?

If your car is damaged by an earthquake (in California or beyond), those damages will be covered by your auto insurance policy as long as you have comprehensive coverage. Unfortunately, vehicle damages are not covered under a homeowners insurance policy or an auto policy that only includes liability and/or collision coverage.