Questions to Ask About Earthquake Insurance
For homeowners, condo owners and renters in earthquake country who are deciding whether to buy or renew a policy. The questions are meant for an insurance agent, or for the state earthquake authority where there is one, and they run in the order the decision does: what your current policy leaves out, the deductible in dollars, the limits, how your own building is treated, the price and who stands behind it, then how a claim would go. Rules and products differ by state and country, so where a note says what is common, check how it works at your address.
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The questions
Each question, and why to ask it
The gap
Does my current home, condo or renters policy pay for any earthquake damage?
Why ask it
Standard policies commonly exclude earth movement, but have the agent find the exclusion in your own policy and read it to you. The wording also shows what the insurer counts as an earthquake, which matters for everything else on this list.
Is earthquake coverage a separate policy or an add-on to my home policy, and whose name is on it?
Why ask it
The company on the policy is the one that pays, and it may be your own insurer, a state-backed earthquake authority or a specialty carrier. Find out too whether it can only be bought alongside a home policy from the same company, because that ties the two together when you shop around.
What would an earthquake policy pay for at my home, and what would it still leave to me?
Why ask it
Have it taken part by part: the building, your belongings, the cost of living somewhere else, and whatever is left out, each with a dollar limit. The deductible should come up in the same breath, because after a moderate quake it can decide whether the policy pays anything at all. If it does not come up, raise it yourself before the price is mentioned.
If a quake leads to a fire, a gas explosion or a burst pipe, which policy pays for that?
Why ask it
Fire that follows an earthquake is often paid by the ordinary home policy even where shaking is excluded, but that depends on the state and the wording. Take fire, water from broken pipes and a sprinkler leak one at a time, and note which policy and which deductible each answer points to.
Besides shaking, which kinds of ground movement are covered: landslide, sinkhole, liquefaction, settling?
Why ask it
'Earthquake' and 'earth movement' are not the same thing in a policy. A hillside house or one on filled ground should get this answer in writing, along with whether a quake has to be the cause for the others to count.
Does my mortgage lender or my condo association require earthquake coverage?
Why ask it
Lenders often do not, which is why nobody will remind you to buy it. Condo owners should put the same question to the association's board, since its rules and its loan terms are separate from yours.
If I go without it, what would I be relying on after a damaging quake?
Why ask it
Press for a concrete answer: savings, borrowing, and whatever disaster aid exists where you live, which may be a loan to repay or a modest grant. A mortgage is normally still owed on a house nobody can live in, so say that balance out loud when you weigh the reply.
Does it matter what caused the quake, such as drilling or wastewater injection nearby?
Why ask it
Some policies cover only earthquakes of natural origin, and others say nothing about cause. Where oil and gas work or a geothermal plant operates in the region, have the agent point to the definition of an earthquake in the form and send you that page. Elsewhere this one can be skipped.
Is water damage from a tsunami, or from a dam or levee failing after a quake, treated as earthquake or as flood?
Why ask it
Worth raising only near the coast, beside a river or below a reservoir. Water that arrives from outside is frequently handed to flood coverage, a third policy, so the follow-up is where that is sold for your address.
Is my car covered if the garage or carport comes down on it?
Why ask it
A vehicle is generally a matter for the auto policy, and often only when that policy includes comprehensive coverage, so this may take a second call. Read the declarations page of the car insurance before assuming either policy has it. The earthquake agent can still say whether tools, bikes and whatever else is kept in the garage count as belongings.
Deductible
Which deductible percentages can I choose from, and what is each one in dollars for my home?
Why ask it
Earthquake deductibles are usually a percentage, so do not leave the conversation holding only the percentage. On a $500,000 building limit, 15 percent is $75,000 that you absorb before the policy pays anything. Have the agent write the dollar figure next to every option.
Is the percentage taken from my coverage limit or from the amount of damage?
Why ask it
The two give very different results. A percentage of the limit stays the same size however small the damage is, so a moderate loss can fall entirely inside it.
Is there one deductible for the whole claim, or separate ones for the building, my belongings and other structures?
Why ask it
Separate deductibles can mean a home with heavy contents damage and light structural damage collects on neither. Get the agent to run that exact case, then check whether any policy on offer combines them.
In plain terms, how badly would the house have to be damaged before this policy pays?
Why ask it
Push for a picture and not a formula: a fallen chimney, cracked plaster through every room, a frame shifted off its foundation. The answer tells you whether you are buying help with repairs or protection against losing the house, and with a high percentage it is usually the second.
Do I have to pay the deductible to anyone, or is it simply taken off the claim payment?
Why ask it
It is commonly subtracted, so no check changes hands, but the payment then falls short of the repair bill by that amount. A good follow-up is how owners in your position tend to cover the gap, and whether the lender has a say in how the money is spent.
Does any part of the policy pay without the deductible, such as living expenses while we are out of the house?
Why ask it
Some policies pay living expenses from the first dollar, which makes that the part you are most likely to use after a quake that damages the house without destroying it. If the one you are quoted works that way, find out what has to happen before it starts paying and where its limit sits.
If an aftershock does more damage a week later, is that the same claim or a new one with its own deductible?
Why ask it
Many policies count every shake inside a set window of time, often measured in hours, as one earthquake. Get the number for this policy, and ask how damage that cannot be pinned to the first shake or a later one is handled.
Can you show me the yearly price at each deductible side by side?
Why ask it
Here is where the policy is really chosen. Divide the dollars a lower deductible would save you in a claim by the extra premium it costs each year, and you have the number of years of paying more that one loss would repay.
Limits
What is the limit on the building, and is it tied to the dwelling limit on my home policy?
Why ask it
Some earthquake policies must mirror the home policy, so a dwelling figure that is out of date there is out of date here too. Check when the rebuild estimate was last run and what cost per square foot it assumes for your area.
Would a claim be settled at the cost of rebuilding today or at a depreciated value?
Why ask it
Put it once for the building and again for belongings, because the answer can differ between them. On a depreciated basis, a fallen chimney on a sixty-year-old house or a smashed television bought eight years ago is paid at what it was worth that morning, which can be a fraction of the replacement price.
After a big quake, when labor and materials jump in price across the region, is there anything above the building limit?
Why ask it
Prices tend to climb when a whole region is rebuilding at once, which is the case an earthquake policy exists for. If your home policy has an extended replacement cost add-on, do not assume the earthquake policy carries it too. Where the answer is no, the building limit is the most you will be paid, so it has to be right.
How much is included for bringing an older house up to current building code during repairs, and can I buy more?
Why ask it
Repairs to an older building can trigger requirements that did not exist when it went up, such as foundation bolting or new electrical work. The included amount is often small, so get the figure and the price of the next step up.
How much coverage is there for my belongings, and what are the steps above the base amount?
Why ask it
Base amounts for contents on an earthquake policy can be far lower than on the home policy. A quake short of a collapse breaks what falls, not everything you own, so count what stands on a shelf, hangs on a wall or would end up under a toppled bookcase, and choose the step that covers that total.
Are breakable things covered: dishes, glassware, televisions, mirrors, art?
Why ask it
Fragile items are exactly what a quake destroys, and some policies leave them out or sell them as an option. If they are left out, ask what the contents coverage would in fact replace in your home: mostly furniture, appliances and electronics, unless those are listed as breakable too.
If the house is unsafe to live in, how much is there for rent and extra living costs, and for how long?
Why ask it
Rebuilding after a regional disaster can take far longer than after a single house fire, since every neighbor needs a contractor too. Compare the limit with the monthly rent on a place the size of yours nearby, and check for a time cap as well as a dollar one.
If my own home comes through intact but the neighborhood is evacuated, or the gas and water stay off for weeks, would the policy pay for us to live elsewhere?
Why ask it
Policies differ on whether an evacuation order or a utility failure counts when your own home is intact. In a city where services could be down for weeks, the answer decides how useful this part of the policy is.
Which parts of the property are left out or capped: chimney, pool, driveway, fences, retaining walls, detached garage?
Why ask it
Exterior features are a common place for exclusions and low caps. Go around your own lot item by item on the call, and price a replacement retaining wall or chimney before deciding the cap is fine.
Is there an amount for emergency work straight after the quake, such as boarding windows, shoring a wall or shutting off utilities?
Why ask it
This is the money that stops a damaged house from getting worse, so it matters whether it is paid before the deductible is met. Find out too whether you may hire someone at once or need approval first, and which receipts to keep.
Does the policy pay for clearing debris and for stabilizing the land under the house?
Why ask it
Demolition and hauling can take a real share of a building limit when they are not counted separately. Land is frequently not insured at all, so on a slope ask what happens when the house can be repaired but the ground cannot.
Your building
What do you need to know about how the house is built before you can quote: year, foundation, number of stories, roof?
Why ask it
The list of what they ask is also a list of what drives the price. If you do not know the foundation type or whether the frame is bolted to it, the inspection report from when you bought, or a look in the crawl space, will tell you.
Are older homes insured on different terms, and is there a cutoff year?
Why ask it
Building codes for earthquakes have tightened over the decades, and insurers often sort houses by the year they were built. Learn which band yours falls in, whether it affects eligibility or only price, and whether a later retrofit moves it.
Is brick or stone veneer covered, and will you insure an unreinforced masonry building at all?
Why ask it
Masonry is where exclusions and refusals cluster, because it cracks and falls where a wood frame flexes. If veneer is excluded, get the price of the optional coverage and a description of a claim on a house whose brick face has come down.
Which retrofits earn a discount, how big is it, and what proof do you need?
Why ask it
Typical candidates are bolting the frame to the foundation, bracing short crawl-space walls and strapping the water heater, but each insurer sets its own list. The proof might be an engineer's letter, a permit sign-off or a contractor's form, and it is worth checking whether work done by a previous owner counts.
Is there a state or local program that helps pay for a seismic retrofit here?
Why ask it
Some places offer grants or low-cost loans for bracing and bolting, often limited to certain zip codes or house types. An agent may know only the name, so take it and check the program's own site to see whether registration is open.
For a condo: what does the association's master policy cover for earthquake, and how large is its deductible?
Why ask it
Some associations carry no earthquake coverage, and others carry it with a very large deductible spread across the complex. The board or the manager can send the certificate, and your own policy should be built around what the master policy leaves to owners.
If the association bills owners for quake repairs or for its deductible, would my policy pay my share, and up to what amount?
Why ask it
This is loss assessment coverage, and for a condo owner it can be the largest earthquake bill of all. Apply your ownership share to the master policy's deductible for a rough idea of the bill, then hold it against the limit you are offered.
Inside my condo, what am I responsible for insuring: interior walls, flooring, cabinets, fixtures?
Why ask it
The governing documents draw the line between the association's building and your unit, and it sits in a different place from one complex to the next. Bring that page to the agent so the limit for your unit is set against the real boundary.
As a renter, what can I buy, and does it cover my belongings and somewhere to stay?
Why ask it
A renter has no building to insure, so the policy comes down to contents and living expenses, typically at a much lower price than an owner pays. Check whether it attaches to your renters policy, and get the smallest deductible in dollars, since a renter's loss is rarely large.
Is a mobile or manufactured home insured differently, and does bracing or tie-down matter?
Why ask it
These homes can slide off their supports in strong shaking, and insurers may write them on a separate policy form. The details to collect are which bracing system earns a credit and whether an installer has to certify it.
Price and insurer
What would this policy cost for a year at my address, and what one thing moves the price most?
Why ask it
Get the figure for the limits and deductible you would really choose, not for the cheapest combination. Then hear what drives it: if the answer is the ground or the zip code, a retrofit will lower the premium less than you hope, and the agent should be willing to say so. Ask as well whether it can be paid monthly or through the mortgage escrow account.
Is there a waiting period before the policy takes effect, and do you stop selling after a quake?
Why ask it
A policy may not start the day you pay: some carry a waiting period of days or weeks, so get the start date in writing. Insurers also commonly pause new policies for a while after a significant earthquake in the area, which is the reason not to plan on buying once the ground has started moving.
How has the price moved at the last few renewals, and what could lead you to not renew me?
Why ask it
Past renewals are the only evidence of where the price is heading, and the agent can look up what policies like yours did at the last two. Where the earthquake policy rides on the home policy, losing the home policy can end both, so ask how much notice a non-renewal comes with.
If I move my home insurance to another company, what happens to this policy?
Why ask it
Where the earthquake policy must sit with the same insurer as the home policy, switching one cancels the other. Find out what the new company offers before you move, and make sure no gap opens between the two dates.
How would this insurer or authority pay claims after a very large quake, and could payments be reduced or policyholders billed extra?
Why ask it
Insurers lean on reserves and reinsurance to pay for a large event, and some programs have written rules for what happens if the money runs short. Ask where that is explained in the policy or on the authority's site, then read it yourself.
Can you quote a private earthquake insurer next to the state-backed option, and what would differ besides price?
Why ask it
Private and specialty carriers sometimes offer lower deductibles or cover things the standard program leaves out. Ask whether the company is admitted in your state and what that means for guaranty fund protection if it fails, since state law sets the answer.
Is there a policy that pays a fixed sum when a quake of a certain strength hits my area, with no adjuster and no deductible?
Why ask it
This is sometimes sold as parametric coverage, and it is not available everywhere. The payout is usually modest, so think of it as cash for the first weeks or toward the deductible on a traditional policy, and pin down exactly which measurement triggers it.
Claims
How long after a quake do I have to report damage, including cracks I only notice months later?
Why ask it
Deadlines for notice and for proof of loss are in the policy, and state law may add its own. Write the dates on the front of your copy, and find out whether a claim can be reopened when hidden damage turns up.
When thousands of claims come in at once, how long might I wait for an adjuster?
Why ask it
Nobody can promise a number, but the agent can describe what happened after the last regional disaster the company handled. Two useful details are whether inspections can be done by video and whether adjusters are brought in from other regions.
What should I do, and avoid doing, before the adjuster arrives?
Why ask it
The usual answer is to photograph everything, make the house safe, keep damaged items and save receipts. Check one detail in particular: whether permanent repairs can start before the inspection or only temporary ones.
How does an adjuster tell new earthquake damage from old cracks and ordinary settling?
Why ask it
A claim on a foundation, stucco or a chimney can turn on what was already there. The practical follow-up is what record would help, and dated photos of the foundation, walls and ceilings taken this week are the cheapest one.
Will the payment come at once or in stages, and will my mortgage lender be named on the check?
Why ask it
When a lender is a payee, the money can sit in an account it controls and be released as repairs progress. Call the loan servicer now and learn how it handles insurance proceeds, so the process is not a surprise in a bad month.
If the damage is below my deductible, should I still report it, and would a claim affect my price or renewal?
Why ask it
Reporting puts the loss on record in case more damage shows later, yet some owners worry about a claim on their history. Ask how the company treats an earthquake claim that pays nothing, and get the reply by email.
If I disagree with the adjuster's figure, what are the steps?
Why ask it
Listen for a sequence: a second inspection, an estimate from your own contractor or engineer, the appraisal clause, then a complaint to the state insurance regulator. Who pays for the engineer, and what deadline each step carries, are the two things to write down.
When the fire damage belongs to my home policy and the shaking damage to this one, who sorts out which is which?
Why ask it
Two policies can mean two adjusters, and two companies debating the split while the house sits open. Find out whether one person coordinates it when both policies come from the same insurer, and what you should photograph to show which damage came first.
Can I take the settlement and not rebuild, or rebuild somewhere else?
Why ask it
After a severe quake some owners would sooner sell the lot or move away. The policy may pay less if you do not rebuild, or hold part of the money until you do, and the lender will have its own view.
What should I set up now so that a claim would go smoothly?
Why ask it
Plan for a house you are not allowed back into: the policy number and the claims line saved in your phone, and a video of each room stored somewhere other than the house. Ask whether a claim can be opened through an app or by text, since phone lines tend to jam after a large quake.
How to ask about earthquake insurance and compare the answers
Practical guidance for the conversation itself
What to have ready before the call
The declarations page of your home policy
The dwelling limit printed there is usually the figure an earthquake deductible is a percentage of. Keep it in front of you with the contents and loss-of-use limits, so every answer can be turned into dollars on the spot.
How the house is put together
Year built, number of stories, foundation type, whether the frame is bolted down, and any brick, stone or chimney. The inspection report from your purchase covers most of it, and a flashlight in the crawl space covers the rest.
The ground under the address
Look up the hazard maps published for your area before you speak to anyone: fault zones, liquefaction, landslide. You will know whether a quote reflects your street, and your questions about land and ground movement will be sharper.
The amount you could absorb
Add up what you could put toward repairs from savings and borrowing without wrecking your finances. That number, more than the premium, is the place to start when choosing a deductible.
Which groups matter most for your situation
A house with a mortgage
Spend your time on Deductible and Limits. The question underneath both is what you would owe and what you would own if the house were a total loss, so have the agent run that case in numbers.
A condo
Start with the three condo questions in Your building, and get the master policy details from the association before you call. An owner's earthquake policy is mostly about the interior, belongings, living elsewhere and a possible assessment.
A rented apartment
You need about ten of these: what the renters policy excludes, belongings, breakables, living expenses, the deductible in dollars and the price. Leave out everything on foundations and retrofits, which are the landlord's concern.
An older or masonry building
Lead with Your building, because eligibility comes before price. If the insurer limits or declines the house as it stands, find out what work would change that and whether help with the cost exists locally.
Getting real numbers out of the conversation
Run three levels of damage
Describe a light quake (cracked plaster, broken dishes), a moderate one (chimney down, foundation cracks) and a total loss, then ask what the policy would pay in each. Most of the difference between two quotes shows up in the middle case.
Make one line per quote
For each quote write the building limit, the deductible in dollars, the contents limit, the living-expense limit and the yearly premium. Two earthquake policies at the same price can look nothing alike once those five sit in a row.
Get the wording, not the summary
Request the full policy form by email before you pay. Exclusions for masonry, breakables and land live in the form, and a one-page quote will not show them.
Put the same scenarios to a second seller
Where both a state-backed program and private insurers sell earthquake coverage, the deductible choices and exclusions can differ a good deal. Use the same three levels of damage with each so the answers line up.
Mistakes that are easy to make
Taking the home policy's silence as a yes
An earth movement exclusion tends to be discovered when a claim is filed. One call settles it now, and the agent's answer should come with the wording of the exclusion.
Judging the policy by its limit
A large limit with a large percentage deductible pays nothing on a moderate loss. Settle the deductible first, in dollars, and only then look at the limit.
Planning to buy after the first tremor
Insurers may stop writing new earthquake coverage for a while after a quake, so the option can vanish at the moment you want it. If you are undecided, set a date to decide instead of waiting for the ground to give you a reason.
Letting the policy go stale
A remodel, a retrofit, a new home insurer or a rise in building costs all change the figures. Read the limits again at each renewal, and tell the agent about structural work so a discount is not left unclaimed.