How Much Is Earthquake Insurance?
There’s no getting around it: Earthquake insurance can be expensive, and the more likely you are to need it, the more it will likely cost you. But the exact cost of your policy will vary based on the specifics involved. Below is a look at some of the factors that will impact your earthquake insurance costs:
- Your deductible: In general, a higher deductible leads to lower insurance premiums. Deductibles for this type of insurance policy tend to range from 10% to 20% of your coverage limit.
- Location of the home: If your home is a high-risk location, you should expect to pay more for earthquake insurance.
- Age of the home: If you have an older home, without upgraded safety features to mitigate earthquake damage, then you’ll likely pay more for coverage.
- Number of stories in the home: A home with multiple stories will likely cost more to insure against earthquakes than a single-story home.
- Rebuilding cost: The estimated rebuilding costs have a big impact on your insurance costs. A higher home value and rebuilding cost will likely lead to higher insurance premiums.
As a general range, annual earthquake insurance premiums can fall anywhere from $800 – $5,000, and policy deductibles can be as high as 10% – 20% of your coverage limit. But it’s important to shop around to find the right policy type and price point for your situation.
The Cost Of Earthquake Insurance In California
Since California is a relative hotspot for earthquakes in the United States, residents tend to face much higher earthquake insurance premiums than the rest of the country.
On average, homeowners in California pay an average of $739 per year for earthquake insurance. However, your exact costs can vary widely based on the amount of coverage you need, the home’s risk and other factors.
How To Save Money On Earthquake Insurance
If you want earthquake insurance, shopping around can help you save money. Each insurance company has a slightly different method of determining rates, which can help you lock in a lower price when you compare quotes.
Another way to lower your earthquake insurance costs in California is to commit to a seismic retrofit. This strengthens your home’s structure against earthquakes, which can lead to a discount between 10% and 25%. Of course, a retrofit can cost thousands of dollars. But depending on your income and location, you might be eligible for a grant of up to $3,000 to help cover the costs of a seismic retrofit through the California Earthquake Authority.
Additionally, choosing a higher deductible can help you find a lower insurance premium. But you’ll be on the hook for more if an earthquake does actually damage your home.
