Homeowners frequently believe a standard homeowners insurance policy covers earthquakes, but this is not always the case. When it comes to earthquake insurance, this kind of coverage can be bought as an addition to an existing policy, but it's also frequently purchased as a separate insurance policy.
Even though Americans in 42 states are sensitive to earthquakes and the resulting damage, not enough people obtain this crucial insurance, according to the Insurance Information Institute (III). Even the best house insurance providers in high-risk regions like California, Oregon, or other states won't pay for earthquake damage unless it develops due to another covered peril, like fire, after the initial occurrence.
The best Earthquake Insurance Providers of 2022
In this article, we’ve compiled the list of the best earthquake insurance companies to find providers with a good reputation and strong financials. We’ll compare the earthquake insurance companies based on the related benefits customers can count on, the coverage they offer, and whether you should add it to an existing homeowners policy.
Best Overall: Allstate
Best Claim Management: Farmers Insurance
Best for California: Amica
Best Overall: Allstate
Specifics:
AM Best rating: A+
Claim process: Online, mobile app, mobile claim centers
Deductible: 5 to 25%
Quote process: Online, Agent
Pros
- There is a mobile application available.
- Top ratings for financial strength from AM Best
- Earthquake insurance is available in some areas of the country, including California.
Cons
- To receive a quote, you must speak with an agent.
Allstate is the best provider overall due to its long history of providing insurance in all 50 states. Due to the provider's solid reputation and financial standing, including their A+ rating for financial strength from AM Best, Allstate is the best choice for earthquake insurance.
The 2021 U.S. Home Insurance Study by J.D. Power gives Allstate a roughly average score.
Since its founding in 1931, Allstate has developed into one of the country's leading suppliers of life insurance, vehicle insurance, homeowners insurance, and other insurance products.
Allstate sells earthquake insurance in some areas of the country, including California. You can purchase Allstate earthquake insurance to guard against damage to your home, other structures on your property, your items, and coverage for loss of use, though the specifics of coverage can vary. Since this coverage comes in to pay for a place to stay and other living expenses while a house is being repaired after damage, loss of use coverage can be particularly crucial for consumers.
Best Claim Management: Farmers Insurance
AM Best rating: A-
Claim process: Online, mobile app, mobile claim centers, text
Deductible: Not specified
Quote process: Online, Agent
Pros
- Ability to claim through a text
- Mobile claims centers streamline the claims procedure following a disaster
- Post-catastrophe assistance for clients and nonclients
Cons
- Lack of knowledge of specific policy coverage
- AM Best rating is not very high
In addition to providing earthquake insurance for homeowners and renters, Farmers Insurance offers home, auto, and life insurance in all 50 states. Customers can get a Farmers insurance policy in California from the California Earthquake Authority (CEA), which is also on our list. Farmers Insurance has excellent reviews and practical tools for submitting a claim.
If you already have a Farmers homeowners policy, get in touch with your agent to add an earthquake endorsement. Besides making it simple to add earthquake insurance to your policy, Farmers offers several discounts for having multiple policies, new residences, and green certifications and consistently makes payments on schedule. However, policy information is unavailable online, so you must use the Farmers online quoting service.
Farmers Insurance stands out for its commitment to customer service and claims management, starting with simple online and mobile claim reporting. Last, the Mobile Claims Center buses are dispatched after natural cataclysms and other significant disasters to assist local citizens with claim submission and provide additional support.
Best for California: Amica
AM Best rating: A+
Claim process: Online, Phone
Deductible: 5 to 25%
Quote process: Online
Pros
- Amica collaborates with the CEA to offer coverage to citizens in California.
- You can combine earthquake insurance with other Amica plans, such as auto or house insurance.
- High rankings for both financial stability and customer service
- Available online claims center
Cons
- You must speak with an Amica agent to receive a CEA earthquake insurance quotation.
Amica is our top choice for standalone earthquake coverage in California. Amica is the best earthquake insurance in California because it collaborates with California Earthquake Authority (CEA). CEA is a publicly managed not-for-profit organization that protects homeowners' properties from earthquake damage.
Amica provides earthquake insurance as a supplement to standard house insurance plans. Still, you can also use them to buy other required insurance, like auto insurance or umbrella insurance protection.
Since Amica was established in 1907, it has a long history of offering its clients high-quality insurance solutions. They also claim a financial strength grade of A+ from AM Best and received top marks in J.D. Power's 2021 U.S.
You must speak with an agent if you want to add earthquake insurance to your current homeowners' insurance policy with Amica. You should also be aware that Amica offers several optional coverages that you may add to your homeowners' insurance policy, including coverage for valuables, personal property replacement, and flood insurance.
You can access Amica's online claims center and the company's top-notch customer support.
FAQs
Is earthquake insurance worth it in california?
Due to the elevated risk seen along the San Andreas Fault and the numerous expensive seismic catastrophes that have occurred in the state over the past 50 years, many clients of earthquake insurance are from California. The California Legislature established the California Earthquake Authority (CEA) in 1996 due to the state's high earthquake frequency and possible future earthquakes with the highest economic costs.
Since then, the CEA has grown to be the country's largest supplier of household earthquake insurance, and the firm writes two-thirds of policies in California. Many companies offer earthquake insurance and work with the CEA to provide coverage for earthquakes in the state of California.
Fortunately, you can rely on earthquake insurance from CEA whenever you need it.
How much earthquake insurance do I need?
Your home's value determines how much earthquake insurance you will need. Your homeowners' insurance policy should specify the replacement cost at which you should insure your house.
What does earthquake insurance cover?
Earthquake insurance generally covers your house repair, attached structures, and other outdoor systems as earthquake damage requires.
If your home isn’t liveable, policies may also cover other costs, such as hotel expenditures and personal property damage brought on by the earthquake. However, earthquake insurance does not cover some problems, such as fire damage, floods, vehicle damage, and masonry damage.
