Earthquake insurance in Los Angeles: what homeowners and renters should review
Standard home and renters policies generally leave out earthquake damage, so compare separate coverage, deductibles, belongings, and living expenses before deciding.
Key takeaways
Homeowners and renters policies generally do not cover earthquake shaking damage, although California law requires them to cover fire caused by or following an earthquake.
A separate earthquake policy can address a home, belongings, or additional living expenses, depending on the policy and whether you own or rent.
Compare limits, deductibles, exclusions, and the written earthquake offer instead of assuming the lowest premium is the best fit.
Start with the earthquake exclusion
The California Department of Insurance says homeowners, renters, and condominium policies generally do not cover damage caused by an earthquake. Earthquake coverage is usually a separate purchase, whether it is written by the home insurer, another insurer, or the California Earthquake Authority through a participating company.
There is an important exception: California law requires homeowners and renters insurance to cover fire damage caused by or following an earthquake. Read the policy and report damage instead of deciding on your own that every earthquake-related loss is excluded.
Compare the written offer, not only the premium
If you have homeowners insurance in California, the insurer must offer to sell you earthquake insurance every other year. The written offer explains the limits, deductible, and premium, and the Department of Insurance says homeowners have 30 days from the mailing date to accept it.
Earthquake deductibles may be a percentage of the covered amount rather than a small flat dollar figure. Ask for an example using your actual dwelling and personal-property limits so you can see what damage would have to exceed before coverage pays.
- Dwelling limit and deductible for homeowners.
- Personal-property limit for furniture, electronics, and other belongings.
- Additional living expense limit if the home cannot be occupied.
- Exclusions for land, vehicles, flood, landscaping, pools, or separate structures.
Renters and condo owners have different needs
Renters do not need dwelling coverage for a building they do not own, but separate earthquake insurance can cover belongings and the extra cost of living somewhere else while the rental is repaired. A basic photo inventory can help you choose a realistic personal-property limit.
Condo owners should review both their unit policy and the association's coverage. Ask how personal property, interior improvements, additional living expenses, and a possible association loss assessment would be handled after earthquake damage.
Common questions
Does renters insurance cover earthquake damage to my belongings?
Generally no. California's Department of Insurance says renters policies generally exclude earthquake damage, but renters can buy separate earthquake coverage for belongings and additional living expenses.
Does home insurance cover a fire that follows an earthquake?
Yes. California law requires homeowners and renters insurance to cover fire damage caused by or following an earthquake, even without a separate earthquake policy.
