California Earthquake Insurance for California Homeowners – It’s Very Real

Ron Trumbo Insurance Editor

California is part of the “Ring of Fire” that surrounds a large part of the Pacific Ocean and the tectonic plates that join up and create a lot of volcanoes and earthquakes along the West Coast. Earthquakes are a reality of living in California, and damage to homes is not simply something you see on TV— it’s real! The California Earthquake Authority indicates that California is likely to have a 6.7 or larger magnitude earthquake within the next 30 years.

When you are buying home insurance in California, your home insurance company is required by California law to at least offer earthquake insurance which protects both your dwelling (the physical building) and your personal property (e.g. broken dishes). You do not have to accept earthquake coverage, but depending on where you live, you should absolutely consider it before the next “big one” comes.

Earthquake insurance has an expensive deductible that is generally a percentage of the value of your dwelling. In California, the deductible cannot be more than 15% of your dwelling value, however; expect earthquake insurance quotes to simply shoot for the moon and quote 10% to 15%. InsuranceLoco recommends that you reach out to several experienced and licensed California insurance agents to truly understand earthquake insurance in California. A local insurance agent may be able to help you find earthquake insurance with your existing California insurance company, or a separate earthquake policy with a specialty home insurance carrier.

California Earthquake Insurance Rates

In California, earthquake insurance rates are based in several factors including, where you live (earthquake rating territory), the value of your California home and it’s construction (wood, bricks, etc.), the age of your home, how many stories the home is, your earthquake insurance deductible, and other things like how much coverage you want for property insurance and additional living expenses.

Although earthquake coverage is very expensive, especially considering the deductible, you may be able to find a small discount if your building has had any earthquake retrofitting.

California Earthquake Authority

California homeowners are fortunate to have the simple and easy expertise of the California Earthquake Authority. If you visit their site, you’ll find some handy earthquake insurance rates tools and information. We ran quick rate for an earthquake insurance policy for San Francisco (where the action is), for a $750,000 policy with a 10% deductible, and the estimated cost was $2,603/year. We also ran a estimate for a $350,000 policy with a 10% deductible in Fresno, and the coverage was a much lower $223/mo. For more information, visit the California Earthquake Authority

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