Can Homeowners Insurance Cover Earthquake Damage in California?

Introduction

Experiencing an earthquake in California—whether minor or catastrophic—can be traumatic and financially devastating. While your standard homeowners policy might feel like a safety net, when it comes to earthquakes, that net often has a pretty big hole.

This guide will explain:

• Why standard homeowners insurance doesn’t protect against earthquake damage
  
  
• What options—including the California Earthquake Authority (CEA)—can fill that gap
  
  
• How much earthquake insurance costs
  
  
• How eWay Insurance helps you get real, cost-effective coverage when it matters most
  
  

Standard Homeowners Policies Don’t Cover Earthquakes

According to the California Department of Insurance, homeowners, renters, and condo insurance generally do NOT cover earthquake damage—though fire that follows an earthquake is typically included. This exclusion stems from the unique, massive risks earthquakes pose, which most standard policies aren’t designed to handle.

How to Get Earthquake Insurance in California

Mandatory Offer Law

By law, insurers must offer earthquake coverage to homeowners every other year—even if it's not required to purchase it. You typically have 30 days to accept this offer, after which it’s considered declined.

California Earthquake Authority (CEA)

The CEA is a unique, publicly managed but privately funded program created after the 1994 Northridge earthquake to ensure earthquake coverage remains available statewide.

CEA-run policies, offered through your existing insurer, include:

• Dwelling coverage (up to your homeowners policy limit)
  
  
• Optional protection for personal property, additional living expenses, and building code upgrades
  
  
• Deductibles ranging from 5%–25% of dwelling coverage, higher for older homes or certain foundations
  
  
• Discounts (up to 25%) for homes that have been seismically retrofitted
  
  

What Earthquake Insurance Typically Covers—and Doesn’t

Covered:

• Structural damage to your home and attached buildings
  
  
• Personal belongings (optional, up to policy limit)
  
  
• Loss of use: living expenses if your home is uninhabitable
  
  
• Building code upgrades required for rebuilding
  
  

Not Covered:

• Landscaping, pools, fences
  
  
• Damage to vehicles
  
  
• Flood, sinkhole, or fire unrelated to quake damage (though earthquake-related fire damage may be covered via homeowners insurance)
  
  
• Damage from tsunamis or water-related events during quakes
  
  

Cost & Value—What It Might Mean for You

Average earthquake insurance premiums in California range from approximately $1,000 to $2,500 annually for $500,000 worth of coverage. Meanwhile, Kiplinger reports that only around 13% of Californians carry earthquake coverage, despite the state experiencing 90% of U.S. earthquakes.

It's costly—but so is rebuilding your entire home—and quake damage isn't covered by regular homeowners insurance.

Why This Matters in California

Earthquakes strike without warning, and repairing damage—or simply finding temporary housing—can cost tens or hundreds of thousands. Without proper coverage, the financial burden falls squarely on you.

Homes built before 1980, constructed with masonry, or located in high-risk zones are more vulnerable—and often cost more to insure. On the flip side, many homeowners can lower their earthquake insurance costs through retrofit discounts and careful planning.

How eWay Insurance Helps You Get the Right Coverage

• Expert guidance on calculating what kind of earthquake coverage you truly need
  
  
• Access to top CEA-related policies and available retrofit discounts
  
  
• Streamlined assistance with policy setup and renewals
  
  
• Clarity on policy limitations, deductibles, and claims process
  
  
• A trusted partner for navigating California’s complex insurance environment
  
  

Frequently Asked Questions

1. Does homeowners insurance cover fire after an earthquake?
Yes. Standard homeowners policies usually cover fire—even if an earthquake caused it.

2. Is earthquake insurance required?
No, it’s not required—but you must be offered it, and accepting it is voluntary.

3. Can renters buy earthquake insurance?
Yes. Renters can purchase quake coverage to protect personal property and pay for temporary housing.

4. What deductibles apply?
Typically 5%–25% of your dwelling limit. Certain older or higher-value homes may only qualify for higher minimum deductibles.

5. How do I lower my premium?
Seismic retrofitting—bolting your home to its foundation, bracing cripple walls, and securing water heaters—can significantly reduce your premiums.

Final Thoughts

In California, neglecting earthquake coverage can leave you vulnerable to ruinous costs—not just for rebuilding, but for temporary housing, debris removal, and more.

While homeowners insurance offers a broad safety net, it does not cover quakes. Earthquake insurance—especially through CEA-backed options—is the simplest way to plug the gap.

With the right guidance and coverage in place, you can protect your home, your finances, and your peace of mind.

Want help evaluating options or bundling quake protection affordably? eWay Insurance is here to help—reach out for a personalized quote today.