Earthquake insurance typically covers the following:

Dwelling

Dwelling coverage includes your house and structures attached to it. This might include concrete slab floors inside the dwelling, the foundation and structures like an attached garage.

Other Structures

This covers structures that are not attached to the house. This might include garages, carports, storage buildings, pump houses and other structures.

Personal Property

Personal property coverage includes furniture, clothes, appliances, dishes, pots and pans, jewelry, musical instruments, rugs and other personal items. Some items have “special limits,” meaning the policy will only pay up to a specific amount. For example, we reviewed a policy that had a $500 special limit on computers and another $500 on tools.

Additional living expenses

Additional living expenses coverage, also known as “loss of use,” reimburses you for extra expenses like lodging, meals and laundry if you cannot live in your house because of earthquake damage covered by the policy.

The following items are commonly excluded on earthquake insurance policies:

-Water supply systems, such as wells, irrigation systems, sprinkler systems and water reclamation systems

-Underground structures or equipment outside the foundation wall of the dwelling, such as underground pipes, cables, flues and drains

-Bulkheads, piers, wharves and retaining walls

-Exterior masonry veneer, walls and fences

-Satellite dishes and antennas

-Personal property located outside of the dwelling

-Awnings or other patio coverings

-Landscaping, trees, shrubs, lawns or plants

-Data (stored electronically or on physical records, like paper or accounting books)

-Trailers designed for use with a motor vehicle

-Animals, birds or fish

-Decorative items or works of art, such as murals, sculptures, fountains, aquariums, stained or leaded glass, mirrors, and chandeliers

-Swimming pools, spas and hot tubs

-Motor vehicles

-Aircraft

-Watercraft

-Property of tenants, roomers or boarders not related to you

-Any business property or property rented to others

-Personal property in any other dwelling owned, rented or occupied by you

In addition, a California Earthquake Authority policy will cover structures such as bulkheads, piers, retaining walls and masonry fences. However, these types of structures are only covered when they are integral to the stability of your dwelling.

Keep in mind, you may be able to purchase a policy that covers commonly excluded items. For example, we reviewed an American Modern Home Insurance earthquake insurance policy that included awnings, plaster, masonry chimneys, exterior water supply systems and underground structures outside the dwelling foundation.

Damage caused by an earthquake isn’t covered by a standard homeowners, renters or condo insurance policy. While earthquake insurance typically isn’t required by a mortgage lender or HOA association, it’s worth considering if you live in an earthquake-prone area.

The Modified Mercalli Intensity Scale is used to determine the severity of an earthquake. These 10 states have the “strongest shaking potential,” according to the United States Geological Survey:

California

Washington

Utah

Tennessee

Oregon

South Carolina

Nevada

Arkansas

MissouriIllinois

Even if you don’t live in one of these states, you shouldn’t write off the possibility of an earthquake. They can happen in all 50 states.

You need enough earthquake insurance coverage to rebuild your house if it’s destroyed, similar to needing enough homeowners insurance if your home is destroyed in a fire or other problem.

Your earthquake insurance company will set limits on your dwelling (house) coverage, similar to what you have on a homeowners insurance policy.The dwelling portion provides funding to repair or rebuild your house if it’s damaged or destroyed, so you want to make sure you have enough coverage.

Your insurance company will help you figure out how much dwelling coverage you need. You also want to make sure your earthquake insurance policy has enough personal property coverage and additional living expenses coverage.

The average cost of earthquake insurance is about $850 per year, according to AAA. Insurer Lemonade estimates a slightly lower average cost at $800 per year.

Rates for earthquake insurance depend on several factors, including:

-The home’s location. If your home is an earthquake-prone area, you can expect to pay more. Homeowners in a low-risk area might pay $300 per year, while those with an older home in a high-risk area may pay as much as $2,000 per year, according to the insurer Hippo.

-Age of the home. Older homes can result in higher earthquake insurance costs.

-Cost to rebuild the home. This includes the replacement cost to rebuild the house using materials of similar kind and quality.

-Your deductible. A deductible is what you’ll pay out-of-pocket if you file a claim. Earthquake insurance deductibles can range from 10% to 25% of the dwelling policy limit. If you choose a higher deductible, you’ll pay less premium. But keep in mind, 25% of a $100,000 policy limit means you’ll be paying the first $25,000 if you file a claim.

What Are the Earthquake Insurance Policy Limits?

The maximum amount of coverage you can buy will depend on your insurance company, but keep an eye on the coverage limits. For example, if you buy an earthquake policy with only $100,000 of dwelling coverage, that might not be enough to rebuild your home if it were destroyed.

How Much Is an Earthquake Insurance Deductible?

Earthquake insurance policies can have high deductibles (the amount of money you’ll pay out-of-pocket toward repairs if you make a claim). The deductible could range from 10% to 25% of the dwelling’s policy limit. If you have a $100,000 dwelling policy limit, you could be responsible for paying $10,000 to $25,000 if you file a claim.

What Are the “Special Limits” of Earthquake Insurance?

Earthquake insurance policies are often filled with special limits for how much the insurer will pay to replace certain items or repair structures. For example, we found a policy that only allowed for $500 to replace a computer and another policy that pays only up to $1,000 for felled tree removal (and no more than $500 to remove any one tree) regardless of how many trees fell. Some policies won’t cover damage to a swimming pool or the deck surrounding it.