Before we answer the question “How much is Earthquake Insurance in California”, we should know what was Earthquake Insurance.
What Is Earthquake Insurance?
Earthquake insurance is a special type of catastrophe insurance that helps protect policyholders from unexpected damage caused by earthquakes. It covers the cost of repairing or replacing your home, other structures on your property, and personal belongings that are lost or damaged during an earthquake or its aftershocks.
Contrary to what some homeowners may think, earthquakes are not covered by regular homeowners insurance. To ensure coverage for earthquakes, you can add earthquake insurance to your existing homeowners or renters insurance policy. Alternatively, you may also have the option to purchase a separate earthquake insurance policy.
Who Should Get it?
According to the Insurance Information Institute (III), earthquake insurance is commonly purchased by people living along the Pacific Coast or in states like California, Washington, Alaska, and Oregon. However, the III states that individuals in 42 different states are actually at risk for earthquake damage.
The III reports that the highest risk for earthquakes is found in 16 states: Alaska, Arkansas, California, Hawaii, Idaho, Illinois, Kentucky, Missouri, Montana, Nevada, Oregon, South Carolina, Tennessee, Utah, Washington, and Wyoming. However, they also mention that some states have little to no risk, including Florida, Iowa, Kansas, Louisiana, Michigan, Minnesota, North Dakota, and Wisconsin.
How much is Earthquake Insurance in California?
The average cost of earthquake insurance in California can vary greatly due to various factors. However, here is the average cost:
- Per thousand dollars of coverage: $3.54 (This translates to an annual rate of around $1,770 for a single-family home with a $500,000 replacement cost)
- Range for single-family houses: 10 cents to $15 per thousand dollars of coverage