What Is Earthquake Insurance and Should San Diego Buyers Get It?

Standard Homeowner's Insurance Does Not Cover Earthquakes

One of the most important things San Diego home buyers need to understand is that standard homeowner's insurance policies in California explicitly exclude earthquake damage. In a state that sits atop multiple major fault systems — including the San Andreas, Rose Canyon, Elsinore, and San Jacinto faults — this exclusion represents a significant gap in coverage that earthquake insurance is designed to fill.

San Diego's Earthquake Risk

While San Diego is not as immediately near the San Andreas fault as the Los Angeles area, the county has active fault systems — particularly the Rose Canyon fault that runs directly beneath central San Diego and extends offshore. The USGS identifies a meaningful probability of a significant earthquake in San Diego County within any 50-year period.

What Earthquake Insurance Covers

• Dwelling coverage: Repairs to your home's structure after earthquake damage
• Personal property: Replacement of possessions damaged by the earthquake
• Additional living expenses: Temporary housing if your home is uninhabitable after an earthquake
• Building code upgrades: Coverage for required code upgrades when rebuilding

How Much Does Earthquake Insurance Cost in San Diego?

Earthquake insurance in California typically costs 0.5 to 3 percent of your home's insured value annually — significantly more for older homes with less seismic resilience. On a $800,000 San Diego home, earthquake insurance might run $1,500 to $5,000 per year or more. Most policies carry high deductibles — typically 10 to 25 percent of the insured dwelling value — meaning significant losses before insurance kicks in.

California Earthquake Authority (CEA)

The California Earthquake Authority is the largest provider of residential earthquake insurance in California — a publicly managed, privately funded entity. Most major homeowner's insurers offer CEA policies as a companion to their standard policies. The CEA also offers mini-policies with more limited coverage at lower cost — useful for buyers who want some protection at a more affordable premium.

Related Reading on RiederHomes.com:

→ Blog #81: Homeowner's Insurance San Diego

→ Blog #75: Natural Hazard Zones

→ Blog #80: Escrow Process

→ Blog #6: Buyer Closing Costs

— Mance Rieder, Broker Associate | Rieder Homes Group | REAL Broker | riederhomes.com | 858-295-0556