Quick Answer
Most insurance policies do not automatically cover earthquake damage, but it can be added as an endorsement or rider to a standard policy for a separate premium.
Understanding Earthquake Insurance
Earthquake insurance is typically sold as a separate policy or endorsement to a homeowners or renters insurance policy. It is not standard coverage under most standard insurance policies. In the United States, only about 12% of homeowners have earthquake insurance, which is a relatively low number considering the frequency and severity of earthquakes in certain regions.
The Cost of Earthquake Insurance
The cost of earthquake insurance varies depending on several factors, including the location of the property, the value of the property, and the level of earthquake risk in the area. In California, for example, the average annual premium for earthquake insurance is around $700 to $1,000. This is significantly higher than the average annual premium for homeowners insurance in the state, which is around $1,300. However, for residents living in high-risk earthquake zones, the cost can be much higher.
Preparing for Earthquake-Related Damage
In addition to purchasing earthquake insurance, it is also essential to take steps to prepare for earthquake-related damage. This includes securing heavy furniture and objects to walls, storing hazardous materials safely, and having a plan in place in case of an earthquake. It is also crucial to maintain a regular maintenance routine to ensure that the property is in good condition and can withstand the forces of an earthquake.
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