How Much Does Earthquake Insurance Cost?

If you live in a place that shakes from time to time, it is natural to wonder whether earthquake insurance is worth the price. Standard homeowners insurance usually does not cover earthquake damage, so the only way to protect your home from a major quake is a separate earthquake policy. Those policies can be expensive and come with big percentage deductibles, which makes the “Is this worth it?” decision feel hard and emotional.

This guide focuses on one big question: How much does earthquake insurance actually cost? You will see typical price ranges in different parts of the U.S., a deeper look at what drives those costs (especially in California), and practical steps to estimate your own premium so you can decide whether coverage makes sense for your situation.

Typical Earthquake Insurance Costs by Region

There is no single “right” price because the risk of earthquake damage is extremely local. Still, national and state-level data, plus real-world quotes, point to some common ranges for homeowners:

• In lower-risk states, earthquake insurance can be as little as a few hundred dollars per year for a typical single-family home.
• In moderate-risk areas of the West and central U.S., premiums often land in the mid-hundreds to around $1,000 a year.
• In high-risk California markets, premiums for a standard home can easily sit between about $800 and $2,000+ a year, and sometimes higher for large or high-value properties.

Another way insurers describe cost is by the price per $1,000 of coverage. For example, a rate of $3.50 per $1,000 of dwelling coverage means a $500,000 limit would cost about $1,750 per year in premium. Some consumer and regulator data show ranges from roughly $0.50 per $1,000 in low-risk regions to $10–15 per $1,000 or more in the highest-risk pockets.

These are directional ranges, not quotes. Two homes on the same street can see different prices if one is older, built on soft soil, or has not been seismically retrofitted. To understand your own likely cost, you need to look at the factors that push premiums up or down.

What Drives the Cost of Earthquake Insurance?

Earthquake insurance pricing is all about how likely your home is to suffer serious damage and how expensive it would be to rebuild. Insurers look at a mix of location, construction and policy choices.

1. Location and hazard level

Your address is usually the single biggest factor. Insurers use seismic hazard maps, fault proximity, soil conditions and local building codes to estimate how severe future shaking might be. Homes near major faults, on soft or liquefaction-prone soils, or in historically hard-hit regions tend to pay the highest rates.

2. Home value and construction

Because earthquake policies are tied to the cost to rebuild, more expensive homes usually pay more for the same deductible percentage. Construction details matter too:

• Older homes built before modern seismic codes may be more vulnerable and costlier to insure.
• Homes with raised foundations or unbraced cripple walls may face higher premiums or higher minimum deductibles unless they are retrofitted.
• Multi-story homes, masonry construction and certain foundation types can also influence rates.

3. Coverage limits and policy structure

Most earthquake policies have separate parts for:

• Dwelling (structure): The main driver of premium, usually based on replacement cost.
• Personal property: Coverage for your belongings, often with set limit options.
• Loss of use / additional living expenses: Pays for temporary housing and extra costs if you cannot live at home after a quake.

Higher limits add cost, especially for the dwelling. Loss-of-use coverage adds value but can also move the price if you pick a high limit to match local rents.

4. Deductible choices

Unlike standard homeowners claims, earthquake policies use percentage deductibles. Common options range from about 5% to 25% of the dwelling limit, sometimes applied separately to structure and contents. A higher deductible usually means a lower premium, but it also means more out-of-pocket cost if a quake hits.

5. Insurer and program (state-backed vs. private)

In some states, especially California, a large share of earthquake coverage is written through a state-backed or quasi-public program that works with private insurers. Private companies may also offer stand-alone earthquake policies or endorsements. Each has its own pricing model, underwriting appetite and discount structure, so it is common to see meaningful differences in quotes even with the same limits and deductibles.

How Much Does Earthquake Insurance Cost in California?

California carries a very large share of U.S. earthquake risk, and that is reflected in the price of earthquake coverage. Because of high hazard, high home values and strict solvency requirements for insurers, premiums can be significantly higher than in most other states.

For a typical single-family home with mid-range coverage:

• Annual premiums in many California communities often land in the range of roughly $800 to $2,000+ per year, depending on the home’s value, location and deductible.
• For higher-value homes (for example, replacement costs around $1 million or more), premiums can climb well into the low-to-mid thousands per year, especially in coastal and high-fault zones.
• State and industry data often express rates as a cost per $1,000 of coverage. In some parts of California, averages of around $3.50 per $1,000 of dwelling coverage are cited; for a $500,000 dwelling limit, that implies a premium close to $1,750 per year, before adjusting for deductibles and add-ons.

At the same time, only a minority of California homeowners carry earthquake insurance, in part because of these costs and the high deductibles that come with them. That is why it is so important to compare the potential cost of earthquake damage with the combined cost of premiums and deductibles before you decide.

What Does Earthquake Insurance Cover for That Price?

Understanding the cost is easier if you are clear on what you are paying for. While exact details vary by insurer and state, most earthquake policies are designed to cover:

• Dwelling / building: Structural damage to walls, roof, foundation and attached structures directly caused by earthquake shaking.
• Personal property: Furniture, electronics, clothing and other belongings damaged by the quake, up to your chosen limit (sometimes with sublimits for fragile items).
• Loss of use / additional living expenses: Extra housing and living costs if your home is too damaged to live in while repairs are made.
• Code upgrades (optional): Extra rebuilding costs needed to bring your home up to current building codes after a covered loss.

What earthquake insurance usually does not cover:

• Flooding or tsunami damage (that typically requires separate flood insurance).
• Land movement not caused by a quake, or pre-existing damage.
• Normal wear and tear, maintenance issues or cosmetic-only issues not tied to structural damage.

Because deductibles are large, many policies are built to protect against severe, structural damage and long-term displacement rather than minor cosmetic cracks.

Is Earthquake Insurance Worth the Cost?

Whether earthquake insurance is “worth it” depends on both the probability and severity of damage, and on your own financial capacity to absorb a major loss. A serious quake can damage or destroy a home in seconds, and rebuilding costs can easily reach hundreds of thousands of dollars. Without insurance, most of that cost falls on the homeowner.

In high-hazard areas, even a pricey policy may be worthwhile if:

• You would struggle to rebuild or relocate using savings, investments and emergency aid alone.
• Your home’s replacement cost is high relative to your income and liquid assets.
• You plan to stay in the region long term and want to protect both your housing stability and your equity.

In lower-hazard areas, the risk of catastrophic damage may be smaller, and some households decide to self-insure by saving more aggressively and investing in structural retrofits instead. The right answer depends on your risk tolerance, local hazard and the quotes you receive.

How to Estimate Your Own Earthquake Insurance Cost

To move from general ranges to your specific situation, it helps to walk through a simple process and then get quotes.

1. Check your earthquake hazard

Look up official earthquake hazard maps for your region and pay attention to:

• Proximity to known faults.
• Local soil types and liquefaction risk.
• Regional history of damaging quakes.

If you are in a clearly high-risk zone, expect quotes at the higher end of the ranges discussed earlier.

2. Estimate your home’s replacement cost

Your homeowners insurer or agent can usually provide a current rebuilding-cost estimate. Earthquake dwelling limits are typically aligned with that replacement-cost figure. Higher replacement costs mean more potential claim severity and higher premiums.

3. Decide on coverage parts and limits

Before you ask for quotes, think through:

• How much dwelling coverage you need based on rebuilding costs.
• How much personal property coverage you need to replace your belongings.
• How much loss-of-use coverage you would need to pay for rent, food and other living expenses if you could not stay in your home for several months.

Having a realistic set of limits in mind makes it easier to compare quotes apples-to-apples.

4. Choose a deductible you could actually pay

Run a simple calculation with your dwelling limit:

• At a 10% deductible, how much would you owe out of pocket?
• At 15% or 20%, how does that change your premium (and your comfort level)?

Many homeowners discover that a slightly higher deductible produces a meaningful premium reduction while still leaving a deductible they could realistically manage using savings or emergency funds.

5. Get quotes from more than one source

Finally, request quotes from:

• Your current homeowners insurer (for an endorsement or partner program).
• Any state-backed or specialty earthquake program available where you live.
• At least one or two private insurers who write stand-alone earthquake policies.

Use the same dwelling limit and similar personal-property and loss-of-use limits for each quote, and compare premiums, deductibles, coverage details and exclusions side by side.

Ways to Reduce Earthquake Insurance Costs Without Dangerous Gaps

If your first quote makes you feel sticker shock, there may still be room to bring the premium down without exposing yourself to unrealistic out-of-pocket risk.

• Increase your deductible carefully. Moving from 10% to 15% or 20% can lower premiums, but make sure you could realistically cover that deductible after a major quake.
• Ask about retrofit discounts. Seismic retrofits, such as bolting the home to the foundation and bracing cripple walls, can both reduce damage risk and unlock better pricing or deductible options in some programs.
• Right-size your contents and loss-of-use limits. Avoid paying for more coverage than you realistically need, but do not cut these limits so low that you would struggle to replace essentials or afford temporary housing.
• Shop more than once. Earthquake markets change over time, and different insurers have different appetites by ZIP code and construction type. Revisit quotes periodically, especially after retrofits or major home upgrades.
• Review your overall risk plan. Combine insurance with emergency savings, structural improvements and a realistic plan for where you would go and how you would pay for housing after a major quake.