The Best Residential Earthquake Insurance of 2022

If you a home in California, Oregon, or Washington, you likely need earthquake insurance. Here’s why:

• The U.S. Geological Survey is the most reliable and authoritative source on earthquake risk in the United States, and the USGS indicates that California, Oregon, and Washington is at high risk of experiencing a devastating earthquake. 
• Your standard Homeowners insurance policy does not provide coverage for earthquake damage.
•  You are relying on your growing home equity to fund your retirement, and can’t afford to experience a total loss that is not insured.

A typical Homeowners insurance policy will not provide coverage for earthquake damage. In fact, most Homeowners insurance policies will clearly state that earthquake coverage is excluded from the policy. Sometimes, you can add a separate endorsement to your policy that provides coverage for earthquake damage. Even if your Homeowners insurance company offers an endorsement for earthquake coverage, you should compare this coverage to a policy offered by a private  provider that specializes in earthquake insurance.

The answer is no. FEMA cannot make you whole again if you experience a loss due to a natural disaster. For this reason, FEMA strongly encourages you to purchase earthquake insurance to protect your home equity, because “Earthquakes Can Drain Your Bank Account“.

FEMA disaster assistance covers basic needs only and will not compensate you for your entire loss.

Consider the following two homeowners – both own the same style home with the dwelling valued at $500k, and both experience a total loss due to an earthquake.

Homeowner A will likely lose all of their home equity, and will still owe on a mortgage:

• Homeowner A does not have earthquake insurance, so they apply for FEMA assistance. After a lengthy approval process, FEMA provides a small grant for temporary lodging because the dwelling is unlivable. 
• Expenses for repairs exceed the conditions to make the home safe, sanitary and functional and, therefore the homeowner is ineligible to receive FEMA assistance for repairs.
• Homeowner A might be eligible for a SBA loan for $250k, but this likely won’t be enough to rebuild, and must be repaid, on top of the current mortgage.

Homeowner B will likely save all of their home equity, and enjoy continued growth:

• Homeowner B has a full coverage earthquake insurance policy and  immediately files a claim with their earthquake insurance provider. The claims process is fast, and the homeowner receives temporary living expenses while their home is rebuilt.
• The dwelling and other structures will be fully rebuilt, all personal property will be replaced, and this homeowner won’t need to worry about the increased construction costs that come with demand surge after a catastrophe.
• Homeowner B will not only recover their home equity, but will likely enjoy an increased value that often occurs when the local housing market becomes distressed after a disaster.

The annual premium for an earthquake insurance policy is far more cost effective than losing all of your home equity, if you consider a total loss situation.

If you have a lot of equity in your home, and you can’t afford to lose it all at once, then an earthquake insurance policy can be an affordable way to protect your investment.

You’ll find that budgeting for earthquake insurance into the annual cost of owning a home, along with Homeowners insurance, Flood insurance and other maintenance and repairs, makes it easier to manage.

With flexible coverage limits, a broad range of deductibles and several payment plans to choose from, you can find protection at a price you can afford.

The cost of earthquake insurance depends on several factors:

1. Your home’s location
2. Your property characteristics
3. Your coverage limits
4. Your deductible

You can see the exact cost of earthquake insurance for your home in less than minute. You only need to provide your property address and Homeowners Coverage A Dwelling amount to get a price that you can further customize.

The earthquake insurance deductible is a percentage of the coverage limit, and is the portion of the claim that the homeowner is responsible for.

For example, if you experience a total loss, and your home is insured for $500k with a 10% deductible, your policy will pay out $450k.

In the past, earthquake deductibles were historically high. These days, there are more options available to homeowners. Some specialty providers like GeoVera offer a broad range of deductible options from 2.5% – 25%. This allows you flexibility to purchase coverage that fits your needs and your budget.

GeoVera provides deductible options to suit any type of homeowner. Our deductibles start at 2.5% for ultimate coverage, and go all the way up to 25% for savings on premium.

Deductible options vary by location. Get an earthquake insurance quote to see the exact deductible options for your home.

There are 2 ways you or your agent can purchase earthquake insurance:

1. Through the California Earthquake Authority if your current homeowners insurance provider is a participating member.
2. From a specialty stand-alone earthquake insurance provider, like GeoVera.

In 1996, the California Legislature created the California Earthquake Authority (CEA)—a not-for-profit, publicly managed, privately funded entity.

The CEA offers earthquake insurance policies exclusively through select Homeowners insurance companies. If you do not have a Homeowners insurance policy with a CEA participating company, then you cannot purchase earthquake insurance from the CEA.

Yes, you can purchase an earthquake insurance policy without an agent. 

In fact, GeoVera is the only provider that offers full earthquake coverage directly to homeowners, and is rated “A” (Excellent) by A.M. Best Company.

If you have questions, such as “How much coverage do I need?” or “Which deductible is right for me?”, you can call our licensed insurance agents, or you can consult with your homeowners insurance agent who can provide expert guidance.

Here are the most important factors to consider when shopping for the best earthquake insurance provider:

• How fast and easy is it to get a quote?
  Get a quote in less than 30 seconds with GeoVera.
• Can you customize your quote and purchase online?
  GeoVera is known for our ease of use.
• Does the provider offer convenient payment plans?
  GeoVera has several pay plans to choose from.
• Does the provider offer auto pay?
  GeoVera does!
• Does the provider offer mobile friendly policy access?
  Of course, GeoVera does.
• Is the provider highly rated by A.M. Best Company?
  GeoVera’s earthquake providers are rated higher than any other stand alone earthquake insurance provider:  “A” (Excellent) by A.M. Best Company. 
• How long has the provider offered earthquake insurance?
  GeoVera began providing earthquake insurance to California Homeowners in 1997.
• Is the provider backed by the California Insurance Guaranty Fund?
  Unlike the CEA, GeoVera providers are backed by the California Insurance Guaranty Fund. 
• Does the provider have catastrophic claims paying experience?
  GeoVera has extensive experience managing catastrophic and large loss claims. Learn more about GeoVera claims here.

A.M. Best Company is a credit rating agency, and is considered the most reliable and authoritative source on financial ratings for insurance companies.

You want to look for insurance providers that have a high A.M. Best Rating.

GeoVera is proud to say that we have the highest rating earned by a stand alone earthquake insurance provider, “A” (Excellent). Learn more about our A.M. Best rating here.

If you have a policy that is serviced by GeoVera, your claim will be processed quickly. At GeoVera, we are experts at managing large catastrophic claims, and we know how important it is to get you money fast, during your time of greatest need. 

That’s why GeoVera invests heavily in technology to allow us to make fast and accurate digital payments. You’ll want GeoVera on your side when the next quake strikes.

A Single Limit earthquake policy is designed to make things simple with its all-in-one inclusive limit – meaning that the limits for coverages A through F are combined into one single limit.

When a claim occurs, your deductible will apply to the Single Limit, and you will receive a single amount to distribute as you need at the time of an earthquake claim.

Learn more about GeoVera’s Single Limit earthquake insurance policy here. 

Some earthquake insurance policies will provide coverage for damage to swimming pools. Get an instant quote to determine the coverage your property is eligible for. 

If your property has undergone retrofitting, you may be eligible for a discount. You can access our retrofit discount request when you get a quote for earthquake insurance.