Earthquake Insurance (May 2026)
CA averages $1,250–$2,750/yr; San Francisco $2,000–$5,000/yr. Deductibles 5–25% of dwelling — $25K–$125K out of pocket on a $500K home before any payout. Homeowners insurance EXCLUDES earthquake.
Standard homeowners insurance does NOT cover earthquakes
Earthquake is one of three perils explicitly excluded from HO-3 and HO-5 (along with flood and acts of war). You need a separate earthquake policy through CEA (California) or a private carrier (GeoVera, Palomar). The 5–25% deductible structure means earthquake insurance only protects against catastrophic events, not minor cracked drywall.
Quick Answer
- California average: $1,250–$2,750/year (CEA premium calculator). Range across the state: $700–$5,000+.
- San Francisco: $2,000–$5,000/year (San Andreas Fault proximity).
- Deductibles: 5%, 10%, 15%, 20%, or 25% of dwelling coverage. $500K home + 15% deductible = $75K out of pocket before any payout.
- 2025 CEA rate increase: +6.8% applied — avg $70/yr homeowner impact, less than $10/yr for renters.
- Outside CA: GeoVera and Palomar are the major private earthquake insurers in OR, WA, UT, HI, and other seismic zones.
- Retrofit discount: CEA Hazard Reduction Discount up to 25% off for verified seismic retrofits.
Earthquake-Risk States
California gets most of the attention but significant earthquake risk exists across the western US and parts of the Midwest/South.
Highest-risk zones
- California — San Andreas, Hayward, San Jacinto, Imperial Valley faults
- Pacific Northwest — Cascadia subduction zone (OR, WA, Northern CA)
- Alaska — Most seismically active US state
- Hawaii — Volcanic seismic activity
Moderate-risk zones (often overlooked)
- Utah — Wasatch Fault (Salt Lake City corridor)
- Nevada — Multiple active faults
- New Madrid Seismic Zone — MO, AR, TN, KY, IL
- Charleston SC and Eastern Tennessee zones
CEA Deductible Math (Worked Example)
$500,000 home in California — what you actually pay before earthquake insurance kicks in:
- 5% deductible: $25,000 out of pocket → highest premium
- 10% deductible: $50,000 out of pocket
- 15% deductible: $75,000 out of pocket → median CEA choice
- 20% deductible: $100,000 out of pocket
- 25% deductible: $125,000 out of pocket → lowest premium
Going from 5% to 25% deductible typically cuts the premium 25–40%, but adds $100K to your out-of-pocket exposure. Best practice: choose the highest deductible you could realistically pay from savings or HELOC after a major loss.
Should you buy earthquake insurance?
Match your scenario:
- You own in CA, near a major fault, pre-1980 home→ Buy CEA + retrofit if not doneHighest-risk profile. CEA Hazard Reduction Discount up to 25% off if retrofitted.
- You own in CA, modern post-1980 home, inland→ Buy CEA at 15-20% deductibleLower risk than coastal/older homes; modest premium covers catastrophic events.
- You rent in CA→ CEA renter's earthquake policy (~$10/yr extra)Inexpensive contents + ALE coverage. Don't skip — your landlord's policy doesn't cover your stuff.
- You own in OR / WA / Pacific Northwest→ GeoVera or Palomar (private)Cascadia subduction zone earthquake is overdue. CEA doesn't write outside CA — use private carriers.
- You're in Salt Lake City / Wasatch Fault corridor→ Quote private earthquake (Palomar/GeoVera)Wasatch Fault has ~40% probability of M7+ in next 50 years per USGS. Often-overlooked moderate-risk zone.
- You own outright (no mortgage), $200K+ savings→ Self-insure with high-deductible CEA OR skipIf you can absorb $75K-$125K from savings, consider 25% deductible CEA OR self-insurance. Compare premium to expected loss.
- Your home is worth less than your savings could rebuild→ Skip earthquake insuranceIf full rebuild is within self-insurance capacity, the deductible structure makes commercial earthquake insurance a poor value.
Get a CEA Earthquake Quote
The California Earthquake Authority provides residential earthquake insurance for ~75% of CA earthquake policies. Use their free Premium Calculator to estimate cost based on your address, home characteristics, and chosen deductible.
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Frequently Asked Questions
How we verified this
CEA pricing and rate-increase data verified May 2026 against California Earthquake Authority's 2025 Rate & Policy Changes page, CEA Premium Calculator, California Department of Insurance, Bankrate's 2026 California Earthquake Insurance review, Compare.com's 2026 guide, and SmartFinancial's 2026 cost analysis. Pacific Northwest and other earthquake-zone context cross-referenced with USGS hazard models.