Is Earthquake Insurance Expensive in California?

On average, homeowners in California may pay between $450 and $1,950 more than the $800 annual average that homeowners throughout the United States pay for earthquake insurance. Despite the high California earthquake insurance cost, the elevated risk of earthquake damage in California — and the fact that standard home insurance policies don’t provide any coverage — may make earthquake insurance worth purchasing.

Read on to learn more about the cost of earthquake insurance in California and what’s covered by a policy from the California Earthquake Authority (CEA).

On This Page

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  How Much Does California Earthquake Insurance Cost?

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  Why Is Earthquake Insurance So Expensive in California?

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  How Do I Get Earthquake Insurance in California?

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  Insurance Companies That Offer Earthquake Insurance in California?

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  What Types of Earthquake Insurance Policies Are There in California?

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  What Factors Are Considered When Calculating Earthquake Insurance in California?

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  How Much Earthquake Insurance Should I Buy in California?

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  FAQs

How Much Does California Earthquake Insurance Cost?

California homeowners can expect to pay between $1,248 and $2,744 per year for $500,000 worth of earthquake insurance on average, although rates may vary by location.^[1] For a more precise estimate, you can visit the California Earthquake Authority (CEA) insurance cost calculator website and enter your address for a quote.

See the table below for examples of average premiums for $500,000 worth of earthquake insurance for single-family homes in various California neighborhoods — based on quotes from independent insurance companies that submitted their average rates to the California Department of Insurance in 2024.^[2]

Why Is Earthquake Insurance So Expensive in California?

Earthquake insurance coverage is expensive in California due to the high risk of earthquake damage to homes across the state. Two-thirds of all earthquakes in the United States are projected to occur in California, and the state has a 99% chance of experiencing at least one earthquake that is magnitude 6.7 or higher in the future.^[3]

Insurance generally costs more for policyholders with a high likelihood of filing claims, so earthquake coverage is naturally more expensive in earthquake-prone regions like California.

How Do I Get Earthquake Insurance in California?

You will generally obtain earthquake insurance through your homeowners insurance company in California — in fact, your insurance carrier is required to offer you an earthquake insurance policy at least once every two years. In most cases, earthquake insurance you request from your insurer will be provided by the CEA, regardless of whether you are a homeowner, condo unit owner or renter.^[4]

What Is the California Earthquake Authority (CEA)?

The CEA is an earthquake insurance provider managed by elected public officials but funded privately rather than by tax dollars.^[5] Consumers cannot purchase coverage directly from the CEA; instead, they must buy coverage through an insurance company that is a member of the CEA. To qualify for CEA coverage, you need to have an existing residential insurance policy from a member insurer.^[4]

Insurance Companies That Offer Earthquake Insurance in California?

Examples of insurers that sell CEA earthquake insurance policies include the following:^[6]

• Allstate
• AAA
• Farmers
• Liberty Mutual
• Mercury
• Nationwide
• Safeco
• State Farm
• USAA

In addition, a broker who helps you secure fire coverage through the California Fair Access to Insurance Requirements (FAIR) Plan may also be able to get you a policy from the CEA.[6] Meanwhile, there are some insurance companies that sell their own earthquake policies rather than CEA insurance, such as GeoVera and Palomar.^[7]

What Types of Earthquake Insurance Policies Are There in California?

Earthquake insurance policies from the CEA generally include the following five coverage types:^[8]

1. Dwelling: Dwelling insurance covers structural damage to your home and any structures directly attached to it. Your earthquake insurance policy will have the same dwelling coverage limit as your homeowners insurance policy. Keep in mind that dwelling claims require you to make an out-of-pocket contribution — known as a deductible — before your coverage kicks in.
2. Personal property: Personal property insurance covers up to $25,000 worth of damage to electronics, furniture and other items in your home. It’s automatically included in standard policies, but you may opt to forgo it if you buy a Homeowners Choice policy. Alternatively, Homeowners Choice policyholders can get personal property coverage with a separate deductible from their dwelling coverage, meaning they can file a personal property claim even if there isn’t enough damage to their house for a dwelling claim.
3. Loss of use: Loss of use coverage can pay out up to $100,000 for additional living expenses or lost rent payments if you or your tenants must temporarily leave home due to severe earthquake damage or a government order. You may be able to lower your premium by selecting Homeowners Choice earthquake insurance and excluding loss of use coverage from your policy. Loss of use claims aren’t subject to a deductible.
4. Building code upgrade: Similar to an ordinance or law coverage endorsement for a standard homeowners policy, building code upgrade insurance can cover extra costs associated with bringing your home up to local building codes if it needs to be rebuilt due to an earthquake. The maximum coverage limit is $30,000, and your coverage may take effect whenever the total damage to your property exceeds your dwelling insurance deductible.
5. Emergency repairs: Emergency repairs coverage takes care of minor, upfront repairs that are needed to keep your home or belongings from experiencing further damage after an earthquake. CEA policies provide up to 5% of your dwelling and personal property coverage limits for emergency repairs, and no deductible will apply to claims for less than $1,500.

If you buy condo insurance from the CEA, you may also have the option to add loss assessment coverage to your policy. Loss assessment insurance can provide up to $100,000 in case your condo association levies an assessment fee to cover earthquake damage to the external structure of the condo or the deductible of its master insurance policy.^[9]

What Factors Are Considered When Calculating Earthquake Insurance in California?

When calculating earthquake insurance premiums in California, insurance providers may take factors like these into account:^[10]

• Age of the home
• Proximity to a fault line
• Soil type
• Foundation type
• Construction type
• Roof type

Your premiums may also be dependent on your specific policy’s coverage details, including the deductibles you select. CEA deductibles may range from 5% to 25% of your dwelling or personal property coverage limit, depending on your home’s characteristics.^[8] For example, if you have $500,000 worth of coverage for your house, you could have to pay anywhere from $25,000 to $125,000 out of pocket before your insurer contributes toward an earthquake claim.

Finally, your chosen coverage amounts will impact your insurance prices. The more it costs to replace your home after an earthquake, the more you will have to pay for coverage. With Los Angeles homes costing between $450,000 and $1 million to rebuild on average, California residents in large cities can generally expect high earthquake insurance premiums.^[11]

How Much Earthquake Insurance Should I Buy in California?

You should consider buying an earthquake policy with enough dwelling insurance to fully cover your home’s replacement cost if you live in California. Remember that standard homeowners insurance policies typically don’t provide any coverage for earthquake damage, so you could encounter significant out-of-pocket costs if your earthquake insurance policy doesn’t include an ample amount of dwelling coverage.^[4]

Similarly, you may want to put together a home inventory to determine how much your possessions are worth and buy the corresponding amount of personal property coverage.