Short answer: No. California doesn't require homeowners, condo owners or renters to buy earthquake insurance, and most mortgage lenders don't require it either. But standard homeowners policies exclude earthquake damage. California law requires insurers that sell residential property insurance to offer earthquake coverage, so you can choose to add it through the California Earthquake Authority or a private insurer.
The offer requirement
Under California Insurance Code §10081, insurers that sell residential property insurance must offer earthquake coverage to policyholders. The offer is required, but buying the coverage is up to you. If you decline, you may be asked to sign a rejection.
What standard policies exclude
Homeowners, condo and renters policies typically exclude earth movement, including earthquake. That means damage from shaking to your home, belongings and foundation generally isn't covered. Fire following an earthquake is typically covered under a standard policy. See does homeowners insurance cover foundation cracks.
Where to buy earthquake coverage
- California Earthquake Authority (CEA): a publicly managed, privately funded provider that sells policies through participating insurers. See the CEA website.
- Private insurers: some offer stand-alone earthquake policies or endorsements with different deductibles and limits.
- Difference in conditions (DIC) policies: may include earthquake. See what is a difference in conditions policy.
What earthquake insurance typically covers
- Dwelling repair or rebuilding
- Personal property, often an optional or limited amount
- Loss of use / additional living expenses
- Building code upgrades, sometimes limited
Deductibles
Earthquake policies commonly use percentage deductibles based on the dwelling limit, not a flat dollar amount. A higher percentage lowers the premium but means you pay more before coverage begins. Some policies apply deductibles separately to each coverage. Compare carefully.
Do lenders require it?
Most lenders don't, though some may for certain properties or loans. Check your loan documents. See is homeowners insurance required in California?
Condo owners and renters
- Condo owners: the HOA master policy may not include earthquake. If an earthquake damages common areas, owners can face a special assessment. Some earthquake policies include loss assessment coverage. See what is loss assessment coverage.
- Renters: can buy earthquake coverage for belongings and loss of use.
How to decide
Consider:
- Your home's construction, age and retrofit status. See how to insure an older home in California.
- Your ability to pay for major repairs and living expenses out of pocket
- Your equity and mortgage
- Deductible options
- Local soil and fault conditions
Seismic retrofitting can reduce damage and may earn premium discounts with some providers. The California Residential Mitigation Program offers retrofit grant programs in eligible areas.
Mobile homes
Owners of mobile and manufactured homes can also buy earthquake coverage, including through the CEA. Proper installation and bracing systems can reduce damage. See mobile home insurance.
Commercial property
Businesses can buy commercial earthquake coverage. See commercial earthquake insurance.
Common scenarios
A moderate quake cracks plaster and breaks dishes. Without earthquake coverage, not covered. Even with coverage, damage may fall within the deductible.
A gas line breaks and fire follows the earthquake. Fire following an earthquake is typically covered under your standard homeowners policy.
Your condo building's garage is damaged and the HOA issues an assessment. Loss assessment coverage on an earthquake policy may help, up to its limit.
A renter's belongings are damaged by shaking. Only covered if the renter bought earthquake coverage.
Review regularly
Earthquake coverage options, deductibles and prices change. Review your choice each year, after remodeling, or when your financial situation changes.
Prepare as well as insure
Strap water heaters, secure tall furniture, and keep emergency supplies. See Ready.gov for preparedness guidance.
Bottom line
Earthquake insurance is a personal financial decision, not a legal requirement. Start by asking how you would pay for major structural repairs, temporary housing and replacing belongings after a large quake. If you couldn't pay those costs without serious hardship, earthquake coverage deserves a close look. Compare deductible options, coverage for contents and living expenses, and retrofit discounts. Review your decision whenever your mortgage, savings, home or family situation changes.
Contact Alishahi Insurance or call (877) 711-4545. See California earthquake insurance.
Frequently asked questions
Is earthquake insurance required in California?
No. It's optional, though insurers that sell residential property insurance must offer it.
Does homeowners insurance cover earthquakes in California?
No. Standard homeowners policies exclude earthquake damage, though fire following an earthquake is typically covered.
Do mortgage lenders require earthquake insurance?
Most don't, though some may. Check your loan documents.
What is the California Earthquake Authority?
A publicly managed, privately funded provider that sells earthquake policies through participating insurers.
How do earthquake deductibles work?
They're usually a percentage of the coverage limit rather than a flat dollar amount.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.