Wood frame structures generally benefit from lower rates than brick buildings because they tend to withstand quake stresses better. Generally, older buildings cost more to insure than new ones. Premiums also differ widely by location, insurer and the type of structure that is covered. In most cases, consumers can get higher deductibles to save money on earthquake premiums. Insurers in states like Washington, Nevada and Utah, with higher than average risk of earthquakes, often set minimum deductibles at around 10 percent. This means that if it cost $100,000 to rebuild a home and there was 2 percent deductible, the consumer would be responsible for the first $2,000 dollars. Deductibles can range anywhere from 2 percent to 20 percent of the replacement value of the structure. See the Poll report for details.ĭeductibles and Costs: Earthquake insurance carries a deductible, generally in the form of a percentage rather than a dollar amount. Homeowners in the West were most likely to have earthquake insurance, with 28 percent saying they had the coverage, followed by the South at 25 percent the Northeast at 21 percent and the Midwest at 16 percent. Twenty-three percent of homeowners who had homeowners insurance responding to the 2020 Triple-I Consumer Poll said they had earthquake insurance, up from 15 percent in 2018. Cars and other vehicles are covered for earthquake damage under the comprehensive part of the auto insurance policy. These losses could involve claims for business interruption and additional living expenses as well. Insurers that don’t sell earthquake insurance may still be impacted by these catastrophes due to losses from fire following a quake. Cars and other vehicles are covered for earthquake damage by comprehensive insurance which also provides protection against flood and hurricane damage as well as theft. Coverage for other kinds of damage that may result from earthquakes, such as fire and water damage due to burst gas and water pipes, is provided by standard home and business insurance policies in most states. Unlike flood insurance, earthquake coverage is available from private insurance companies rather than from the government. Coverage is available either in the form of an endorsement or as a separate policy for homeowners, renters and small business owners.
Earthquake insuranceĮarthquakes in the United States are not covered under standard homeowners or business insurance policies. The potential cost of earthquakes has been growing because of increasing urban development in seismically active areas and the vulnerability of older buildings, which may not have been built or upgraded to current building codes. Millions of people across 42 states are at risk for damage from an earthquake, yet few purchase earthquake insurance to protect their property. This shaking can sometimes trigger landslides, avalanches, flash floods, fires and tsunamis. An earthquake is a sudden and rapid shaking of the earth caused by the breaking and shifting of rock beneath the earth’s surface.
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