Earthquake Insurance.

In plain English

Earthquake insurance is separate coverage that pays for damage to your home and belongings caused by the ground shaking. Standard home and renters policies exclude earthquake damage, so this is either an add-on (called an endorsement) or a stand-alone policy. A defining feature is its deductible, which is usually a percentage of your home's insured value rather than a flat dollar amount, and that percentage can be large. Because the deductible is high, earthquake insurance tends to make the most sense for serious structural damage rather than small cracks.

01Why it matters

A major quake can total a house, and since your regular policy pays nothing for it, this coverage can be the difference between rebuilding and financial ruin.

02The math, step by step

Say your home is insured for $400,000 and your earthquake policy has a 15 percent deductible. That means you cover the first $60,000 of damage yourself before the policy pays anything. If a quake causes $200,000 in damage, the insurer pays $140,000 and you pay $60,000. Percentage deductibles like this are standard: in California, the California Earthquake Authority (as of 2026) offers deductibles of 5, 10, 15, 20, and 25 percent of insured value. Exact options and availability vary by state and insurer, so check your state insurance department.

03What this is NOT

04Receipts

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