homeowners insurance

California Earthquake Insurance: Requirements, Coverage, Cost

  • While earthquake insurance is optional in California, home insurers must offer it to new homebuyers. 
  • Earthquake insurance covers your dwelling, personal property, and provides loss-of-use coverage.
  • You can purchase earthquake insurance through your homeowners insurance provider. 

California has a well-earned reputation as the earthquake capital of the US. Yet only 10% of California residents have earthquake insurance, according to the Federal Emergency Management Agency (FEMA). Many homeowners are underprepared for financial losses associated with earthquakes, which are not covered by standard

homeowners insurance

policies. If you’re a Californian living near a major fault line, you can protect yourself with earthquake insurance.

Is earthquake insurance required in California?

California homeowners are not legally obligated to buy earthquake insurance, and

mortgage lenders

don’t require it, says Glenn Pomeroy, chief executive officer of the California Earthquake Authority (CEA), the nation’s largest earthquake insurance provider. However, California law makes it mandatory for providers like State Farm and Allstate to proactively offer earthquake insurance in conjunction with a homeowners insurance policy to new homebuyers, according to Pomeroy.

Homeowners insurance will not cover earthquakes. You must purchase a separate policy to get coverage. Given the large number of damage-causing

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What is an insurance rider in a homeowners insurance policy?

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If you’re worried your homeowners insurance policy doesn’t provide enough protection, you may want to take out an insurance rider for additional coverage. (Shutterstock)

Homeowners insurance can give you peace of mind that your home and financial interests are protected. How much coverage you get from homeowners insurance varies by policy, but you generally get some level of protection when it comes to liability, your home’s structure, your belongings, and additional living expenses. 

That being said, homeowners insurance policies don’t cover everything, and you may need to purchase an insurance rider to get the full coverage you want. 

Here’s what you need to know about insurance riders.  

With Credible, you can easily compare homeowners insurance quotes from top insurance carriers.

What is a homeowners insurance rider?

A homeowners insurance rider acts as an add-on to a homeowners insurance policy. You may also hear riders referred to as endorsements or

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