In the quiet of a summer afternoon in 2024, the ground shook beneath a peaceful suburban neighborhood in Tennessee—a place few thought of as earthquake-prone. Chimneys cracked, driveways split, and homeowners were left stunned. The kicker? Most of them didn’t have earthquake insurance.
Welcome to 2025, where natural disasters are becoming more frequent, and seismic activity is no longer limited to just California. With over 70% of Americans now living in areas that could experience damaging earthquakes, it’s time to seriously ask: Who needs earthquake insurance—and why is it more relevant than ever?
Let’s dive into the realities of earthquake insurance in 2025, who should consider it, and how you can protect your home and peace of mind.
Why Earthquake Insurance Matters More in 2025
The landscape of risk has changed. According to the latest data from the United States Geological Survey (USGS), seismic zones are expanding, and more regions than ever before are being flagged for moderate to high risk of earthquake activity. Surprisingly, many of these places fall outside the traditional earthquake map.
Homeowners’ insurance typically does not cover earthquake damage. That means if the ground shifts and your foundation cracks—or worse, your home collapses—you’ll be footing the bill unless you have earthquake insurance. Some policies may cover fires that result from an earthquake, but not the structural damage itself. Not included.
This coverage gap is why earthquake insurance is becoming a topic of serious discussion, even in places that haven’t historically experienced major tremors.
What Does Earthquake Insurance Cover in 2025?
Earthquake insurance isn’t just for massive catastrophes—it helps you recover from anything from a few cracked walls to a full rebuild. A typical policy includes:
Dwelling Coverage
This covers the repair or rebuilding of your home. In many cases, it includes the foundation, attached garages, and built-in features.
Other Structures
Think of unattached buildings like sheds, detached garages, and carports.
Personal Property
Items like furniture, appliances, electronics, and clothing are generally covered, though there may be special limits on high-value items like computers or jewelry.
Additional Living Expenses
If your home becomes uninhabitable, this helps cover costs like hotel stays, restaurant meals, and even laundry while repairs are underway.
In 2025, some modern policies have started to include broader protections, but it’s still crucial to read the fine print. Not all policies are equal.
What Earthquake Insurance Does Not Cover
While earthquake insurance provides a safety net, it doesn’t cover everything. Common exclusions include:
- Landscaping, trees, and lawns
- Swimming pools, hot tubs, and patios
- Decorative elements like sculptures, chandeliers, or murals
- Underground utilities or septic systems
- Water damage unrelated to a seismic event
Policies often exclude damage caused by poor maintenance, construction flaws, or soil movement not related to earthquakes, like sinkholes or erosion. This is why comparing providers and understanding each policy’s scope is key.
Who Should Seriously Consider Earthquake Insurance in 2025?
It might seem obvious that Californians need earthquake insurance, but 2025 tells a more complex story. According to the USGS, the states with the highest shaking potential now include:
- California
- Washington
- Oregon
- Utah
- Nevada
- South Carolina
- Missouri
- Tennessee
- Arkansas
- Illinois
These regions have experienced rising seismic activity in recent years. But even if you’re outside this list, it’s worth checking your local fault lines. Earthquakes have happened in all 50 states.
You should especially consider earthquake insurance if:
- You live in an older home built before modern seismic codes
- Your home is made of brick or masonry
- You’re near a known fault line
- You lack significant savings or a financial backup plan for disaster recovery
How Much Earthquake Insurance Coverage Do You Need?
Determining how much earthquake insurance you need begins with understanding the cost to rebuild your home, not its market value. Most insurance companies help estimate this based on construction costs, materials, and location.
You’ll also need to account for:
- Personal Property: Do you have a home inventory? Consider what it would cost to replace everything you own.
- Living Expenses: Could you afford to live elsewhere for weeks or even months while your home is repaired?
Another critical aspect is the deductible. Earthquake insurance deductibles are usually between 10% to 25% of your dwelling limit. That means if your coverage is $300,000 and your deductible is 15%, you’ll pay $45,000 out-of-pocket before the insurer kicks in. Choosing a higher deductible lowers your premium but raises your financial risk during a claim.
Earthquake Insurance in California: What’s Different?
In California, insurers are required by law to offer earthquake insurance every two years when you buy or renew your homeowners policy. If you don’t respond to the offer, it’s considered a rejection—but don’t worry, the offer will come again in 24 months.
Most Californians get their earthquake coverage through the California Earthquake Authority (CEA), a state-run provider working with insurance companies. The CEA also promotes retrofitting older homes to make them more resilient, and even offers discounts (up to 25%) on your policy if your home is retrofitted.
Even if you don’t purchase earthquake insurance, California law ensures your homeowners insurance still covers fire damage following a quake.
How Much Does Earthquake Insurance Cost in 2025?
Nationwide, the average cost of earthquake insurance is hovering around $800 to $850 per year. However, your rate can swing significantly depending on:
- Where you live
- The age and structure of your home
- Your coverage limits and deductible
- Whether your home is retrofitted
In low-risk areas, you might pay $300 annually. In high-risk zones like Los Angeles or San Francisco—especially with an older brick home—costs can exceed $2,000 a year.
Californians pay an average of $738 annually, but CEA discounts can help lower that number if your home qualifies.
How to Buy Earthquake Insurance in 2025
You have a couple of options when purchasing earthquake insurance:
- Add it to your existing homeowners’ policy as an endorsement
- Purchase a separate stand-alone policy from a specialized provider
- Go through a surplus lines insurer if standard carriers decline your application
Not all companies offer earthquake insurance, especially shortly after a quake. Most carriers implement a 30–60 day moratorium after seismic activity, so it’s smart to buy coverage before you think you’ll need it.
When shopping, ask these questions:
- Is my masonry veneer covered?
- What are the personal property limits?
- What’s the deductible, and how is it applied?
- Are there any discounts for retrofitted homes?
Taking the time to compare policies and understand coverage limitations is crucial, especially with a policy that could save you hundreds of thousands of dollars.
Earthquake Preparedness: Before and After the Shake
Insurance is only part of the equation. Preparing your home and family matters just as much.
During an Earthquake:
- Don’t run outside—falling debris is dangerous
- Drop to your knees, take cover under sturdy furniture, and hold on
- Stay away from windows, chimneys, and large furniture
After an Earthquake:
- Check for gas leaks and shut off valves if needed
- Document all damage and contact your insurer immediately
- Use your home inventory to report losses accurately
- Keep all receipts for living expenses if you’re displaced
- Consider hiring a public adjuster for large or complex claims
Frequently Asked Questions (FAQs)
Does regular homeowners’ insurance cover earthquakes?
No. Standard policies exclude earthquake damage. You need separate earthquake insurance.
Is earthquake insurance worth it if I don’t live in California?
Yes. Earthquakes have been recorded in all 50 states. Your region may be at higher risk than you think.
How does the deductible work?
It’s a percentage of your coverage limit. If you have $200,000 coverage with a 10% deductible, you’ll pay $20,000 out-of-pocket for a claim.
What if I decline California’s insurance offer?
You’re not required to accept it, but you’ll need to wait two years for another offer unless you seek a private policy.
How can I lower my premiums?
- Retrofit your home
- Increase your deductible
- Shop around and compare multiple providers
Final Thoughts
In 2025, earthquake insurance is no longer a niche consideration for West Coast homeowners—it’s a practical safeguard for millions of Americans. Whether you live in a high-risk zone or a state not traditionally associated with earthquakes, the reality is this: Earthquakes are unpredictable, and recovery is expensive.
Having earthquake insurance may not eliminate your risk, but it could mean the difference between rebuilding and starting over with nothing.
If you haven’t considered it yet, maybe it’s time to look beneath your feet—and at your policy.
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