Do I need earthquake insurance?

Does home insurance cover earthquake damage?

The short answer is no — home insurance doesn't usually cover earthquake damage. The standard homeowners insurance policy has a few major components when it comes to coverage:

1. Structure and dwelling coverage. 

If a storm damages your home or other structures (like your deck, patio, shed, detached garage, etc.), this coverage may kick in. It may cover the cost of the repairs and replacements.

However, this coverage often does not extend to earthquake damage. It also doesn't cover damage caused by floods. So, you may also want to purchase separate flood insurance as well.

Does your home have weak points? Contact a structural engineer to find out. 

2. Personal liability and medical expenses coverage. 

This protection typically extends to someone incurring an injury on your property. 

Let's say someone slips and falls on your property, breaking their leg. Because of their medical bills, lost wages, etc., they may attempt to sue you for damage. When this happens, your homeowners insurance may cover you. Liability coverage kicks in to help defray legal defense costs and potential jury awards. 

3. Personal property coverage. 

If someone steals your personal belongings (electronics, jewelry, art, etc.) from your home, this may kick in to help cover the loss. This coverage may also cover damaged belongings.

Pull up your homeowners insurance policy to see exactly what it covers. Read the fine print, and take note of the coverage limitations, deductibles, and premiums. If anything is unclear, call your insurance company.

What is earthquake insurance, and what does it cover? 

Earthquake coverage can help cover repairs and replacements to your home and other structures on your property caused by earthquakes.

Here's a list of things earthquake insurance typically covers:

• Interior, exterior, and structural damage to your home caused by an earthquake and aftershocks.
• Earthquake damage to other structures, such as fences, gazebos, driveways, etc.
• Loss of use, which is living expenses if you become displaced (but only temporarily)
• Personal property and belongings damaged due to an earthquake.

Before you buy earthquake insurance, make sure you fully understand what your policy will cover. You should also know what your earthquake insurance deductibles will be.

Related: How to negotiate tree removal (and save money).

Do most people have earthquake insurance?

You might assume the vast majority of people living in susceptible areas carry earthquake insurance. But that's not always the case.

Here are some interesting findings from a poll conducted by the Insurance Information Institute:

• Only 23% of homeowners with insurance said they had earthquake insurance.
• Homeowners in the West (28%) are most likely to say they have earthquake insurance.
• Only 25% of homeowners in the South, 16% in the Midwest, and 21% in the Northeast have earthquake insurance.

Residents who live in Western states (like California) are more likely to have earthquake insurance — but not all of them do. In other areas of the country, earthquake insurance is likely not a top priority for homeowners. That’s probably because they believe an earthquake is unlikely, especially if they've never experienced one in their area.

If you live in an area that is more susceptible to earthquake damage, you may want to consider purchasing earthquake insurance.

Is earthquake insurance worth it?

Now that you know what it is, you're probably wondering, "Should I purchase earthquake insurance? Is it really worth it?" 

You'll need to consider earthquake insurance premiums, deductibles, your location and risk, and your overall peace of mind to make this decision. If you value peace of mind, you’ll have it knowing that your biggest investment is covered in the event of an earthquake.

Peace of mind isn't the only thing at risk. If you consider the cost to cover emergency repairs (and perhaps even the cost to completely rebuild your home), earthquake insurance may be worth it.

Related: How to submit an insurance claim for a roof replacement.

FAQs.

How do I know if my home is in an earthquake zone?

Some states have helpful maps and diagrams to help you understand if your area is prone to earthquakes. For example, in California, you can use the Earthquake Hazards Zone Application (or EQ Zapp). Use it to find out if your house is in one of three hazardous earthquake zones.

If you live in another part of the country, you can use the Federal Emergency Management Agency. It has maps that utilize various colors to convey the risk of an earthquake. White indicates a very small chance of earthquake occurrence. Red signifies zones on or around fault lines that hold a high probability of incurring such an event. 

How much damage can an earthquake cause to your home?

Earthquakes can cause minor and major damage to your home. For example, you may experience:

• Landslides or mudslides.
• Burst and broken pipes.
• Leaks in water and gas lines.
• Damage to exterior walls, roofs, chimneys.
• Fallen lights, pictures, ceiling fans, and other hanging fixtures.
• Damage to outdoor structures, such as sheds, decks, fences, and pergolas.
• Trees and branches that have fallen down (and damaged nearby structures).
• Cracks in your foundation, driveway, patio, and other concrete structures.
• Shattered glass and fragile items, including windows, dishes, vases, mirrors, and more.
• Dents, scratches, and holes in your flooring caused by heavy objects that fell during the shaking.

Because of all the damage that can occur, it's worth taking steps now to earthquake-proof your home. Although it's impossible to prevent any and all damage — but you can take steps to help protect your property.

For example, there are specific techniques you can use to secure furniture and appliances. And if your home has structural weak points, you can chat with a contractor to discuss retrofitting options.

Does FEMA pay for earthquake damage?

FEMA provides assistance to households and individuals affected by natural disasters, including earthquakes. It may offer coverage for home repairs and replacements. FEMA may also cover things like additional living expenses for temporary housing if you must live elsewhere during repairs.

However, don't consider FEMA to be your insurance plan. You will first need to apply and meet eligibility requirements to receive assistance. Also, you may not receive enough assistance to cover all of your damages. It may only scratch the surface of the entire repair and replacement bill.