While earthquakes threaten areas along the Pacific coastline, they are also a very real threat to 45 states and territories in the United States (which are marked at moderate to very high risk of experiencing earthquakes). However, the greatest number of large earthquakes strike Alaska, while the most frequent damaging earthquakes strike California. Despite the daily threat of earthquakes in California, only 17 percent of homeowners own earthquake insurance.

Get a Free Quote for Earthquake Insurance Here!

A standard home insurance policy does not cover damages incurred from an earthquake. Homeowners and renters must buy earthquake insurance as an add-on to their current home insurance policies. Those shopping for earthquake insurance must ask what it is they want covered—personal property, additional structures (i.e., garages, sheds, porches), and/or temporary living expenses should the damaged home be deemed uninhabitable. Factors that affect premium costs include the following:

• Age of the home (the older the home is, the more expensive the premium is)
• The home’s location (areas with a higher rate of earthquake activity will cost more to insure)
• The material used to construct the home (rates are cheaper for homes made of wood, which withstand earthquake damages better than homes made of brick, for example).

Make sure you have this information in hand as you shop for an earthquake insurance policy. Also, be sure to ask your insurance agent if there are any limitations or exclusions to the coverage. Finally, do not forget to ask when exactly the insurance kicks in.

Purchase Low-Cost Earthquake Insurance Here!

• The Earthquake Education Center at Charleston Southern University states that there is 40 to 60 percent probability of a major earthquake striking the eastern United States within the next 20 years.
• The U.S. Geological Survey claims that there is a 70 percent chance that an earthquake of a magnitude of at least 6.7 will strike the San Francisco Bay Area within the next 30 years.
• Earthquake insurance is a type of catastrophic coverage with a high deductible—usually between 10 to 15 percent of your coverage limit.