What You Need to Know About Renters Earthquake Insurance
Renters earthquake insurance can be worth it for tenants who live in high-risk earthquake areas, but coverage can be expensive depending on the location.
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Renters earthquake insurance is a policy that covers damaged personal items if there’s an earthquake. Standard renters insurance and homeowners insurance policies almost never cover damage to your belongings from earthquakes. If you live in an earthquake-prone area, you might need to add earthquake insurance to your renters policy or purchase a separate policy.
If you’re thinking about purchasing renters earthquake insurance, it can be helpful to understand what this type of policy covers, how much it costs, and where you can get coverage.
How renters earthquake insurance works
Renters earthquake insurance covers your personal property that an earthquake damages or destroys. If an earthquake damages any of your personal belongings, you can file a claim with your insurance company to get reimbursed for your damaged items, minus the deductible. Most earthquake insurance policies have a separate deductible that’s roughly between 2% and 20% of the policy limit.1
Renters earthquake insurance and standard renters coverage differ in a few ways. Renters earthquake insurance only covers earthquake-related claims. Standard renters and home insurance covers personal property damage from many different perils (excluding earthquakes) and includes liability insurance, medical payments coverage, and loss of use insurance, also called additional living expenses coverage.
Because standard renters insurance policies don’t cover earthquake damage, renters in certain locations may need to purchase specialized coverage to fill the gaps. For example, if you live in a state where earthquakes are common, like California, adding renters earthquake insurance is the only way you can get coverage for your personal items if there’s an earthquake.
What renters earthquake insurance covers
Renters earthquake insurance provides several types of coverage if an earthquake damages your home or personal belongings.
Here’s what it typically includes:
What earthquake insurance for renters doesn’t cover
Earthquake insurance has some exclusions. Before you purchase a policy, it’s important to understand what your policy doesn’t cover. Here are some things that a standard renters earthquake insurance policy typically excludes:
The physical structure of the building: Renters don’t own the physical building they live in, so any damage to the physical structure is the responsibility of your landlord’s earthquake insurance policy.
Personal vehicles: If an earthquake damages or totals your car, your comprehensive car insurance policy will cover this. Keep in mind that state-minimum liability-only car insurance doesn’t cover damage from earthquakes.
Other types of damage caused by an earthquake: If an earthquake causes other types of damage in your home, like a fire, that would be a separate claim covered under your standard renters insurance policy.
Losses that exceed your coverage limits: All renters earthquake insurance policies have a coverage limit. If the cost of damages exceeds the policy limit, you’ll have to pay the difference out of pocket.
How much does renters earthquake insurance cost?
The cost of earthquake insurance for renters can be as low as $35 per year, according to the California Earthquake Authority (CEA).3 But the actual cost depends on many different factors, like your location and the value of your personal belongings. In general, earthquake insurance premiums are lower in areas with less risk.
Another big factor that can affect renters earthquake insurance premiums is the deductible you choose. Most renters earthquake insurance policies have a separate percentage-based deductible, which typically ranges from 2% to 20% of your policy limit. Choosing a higher deductible will result in a lower premium, whereas a lower percentage deductible will have a more expensive premium.
Is renters earthquake insurance worth it?
Renters earthquake insurance can be worth it for people who live in earthquake-prone areas. Without renters earthquake insurance, you won’t have any coverage for your personal belongings or additional living expenses if an earthquake causes damage to your home.
Alaska experiences more earthquakes than any other state. Earthquakes are also common in California and other states along the Pacific Ocean, like Washington and Oregon. In recent years, seismic activity has become increasingly common in some Midwestern states, like Oklahoma.4 If you live in any of these states, earthquake insurance can be beneficial.
If you’re thinking about buying earthquake coverage, it’s important to weigh the cost against the potential financial impact of an earthquake. For example, if you own few belongings or could afford to replace your personal items out of pocket, you might not need renters earthquake insurance.
On the other hand, if you own a lot of belongings or have high-value items and can’t afford to replace them if an earthquake damages or destroys them, the cost of renters earthquake insurance may be worth it. To find the most affordable earthquake insurance for your situation, it’s a good idea to compare quotes from a few different insurers.
How to buy renters earthquake insurance
Renters have a few different options for earthquake insurance. Here are the steps you should follow to purchase renters earthquake coverage:
Earthquake insurance for renters FAQs
Earthquake insurance can be a smart purchase for renters in certain states. Here’s some more information about this type of coverage and whether it’s right for you.
Should you get earthquake coverage added on to your renters insurance?
If you live in an earthquake-prone state, adding earthquake coverage to your renters policy can be valuable. While standard renters insurance covers many types of natural disasters, most policies exclude coverage for earthquakes. Adding earthquake insurance will cover your personal items and temporary living expenses if there’s an earthquake.
Is earthquake coverage worth it?
Earthquake coverage is worth it for some people, but it depends on individual factors, like your location, your financial situation, and the value of your personal items. If you live in a high-risk area near a fault line, you’ll need to decide if the cost of earthquake insurance is worth the financial protection it’ll provide.
Does renters earthquake insurance cover all your belongings?
Renters earthquake insurance covers all the personal items inside your rental home or apartment, like clothing, decor, furniture, and small appliances. But earthquake insurance policies typically provide limited coverage for valuables, like fine jewelry, money, and art.
What happens if you don’t have earthquake insurance and an earthquake damages your belongings?
If an earthquake damages your belongings and you don’t have earthquake insurance, you would have to pay out of pocket to repair or replace your items. Standard renters insurance policies almost never cover earthquake damage, and your landlord’s insurance policy doesn’t cover your belongings, either.
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