25 Earthquake Insurance Statistics on Risk, Coverage, and Cost
How few Californians carry earthquake insurance, what CEA policies and deductibles cost, USGS odds of a major quake, annualized losses, and the insured toll of Northridge, in 25 cited statistics for U.S. homeowners.
Earthquakes are one of the few major disasters that a standard homeowners insurance policy does not cover, so protection has to be bought separately. In California, where scientists put the odds of a damaging quake near certainty, only about one in eight residential policies carries that coverage. This report gathers 25 cited statistics on who buys earthquake insurance, what it costs, how deductibles work, how likely a major quake is, and what past earthquakes have cost. Every figure comes from a state regulator, a federal science agency, the California Earthquake Authority, or an insurance research body.
Key Takeaways
- Coverage is rare even where risk is highest - just 12.48% of California residential policies included earthquake coverage in 2025.
- A big quake is close to certain - California has a greater than 99% chance of a magnitude 6.7 or larger earthquake within 30 years.
- The exposure is national - about 143 million people in the contiguous U.S. could experience potentially damaging shaking.
- Losses average billions a year - earthquakes cost the nation an estimated $14.7 billion per year in building-related losses, 65% of it in California.
- Northridge still sets the record - the 1994 quake caused $15.3 billion in insured losses, about $33 billion in 2024 dollars.
- Deductibles are large by design - CEA homeowners deductibles run from 5% to 25% of the dwelling limit, not a flat dollar amount.
How many Californians carry earthquake insurance
1. Only 12.48% of California residential policies include earthquake coverage
California’s insurance regulator counted 1,591,648 earthquake policies against 12,754,225 residential property policies in 2025, a take-up rate of 12.48%. That means roughly seven of every eight California residential policyholders would pay for earthquake repairs out of pocket. The gap is striking in a state with some of the highest seismic risk in the country. It is also why a single large urban quake could leave much of the damage uninsured.
- Has earthquake coverage 12%
- No earthquake coverage 88%
2. About 15% of California homeowners have earthquake coverage
Homeowners buy at a slightly higher rate than the market overall. In 2025, 922,090 of 6,052,334 homeowners policies in California carried earthquake coverage, a take-up rate of 15.24%. Owners have the most at stake, since the structure is usually their largest asset. Yet about 85% of California homeowners policies still carry no earthquake protection for the house.
3. Take-up ranges from 19% to under 3% by policy type
Coverage rates vary widely by what is being insured. California’s 2025 data call shows:
- Mobilehome owners: 18.95%
- Homeowners: 15.24%
- Condominium owners: 14.13%
- Renters: 13.30%
- Dwelling fire: 2.91%
California FAIR Plan dwelling policies had the lowest rate of all at 2.20%. Dwelling fire policies, about a quarter of them written by the FAIR Plan, grew by 158,078 in 2025 while homeowners policies fell, a mix shift that weighs on the statewide rate.
4. Take-up has slipped from 13.89% in 2019
The share of California residential policies with earthquake coverage reached 13.89% in 2019, the high point of the 2017 to 2025 data, and has drifted down since, according to the Department’s annual earthquake data calls. The rate held at 12.48% in both 2024 and 2025. The decline coincides with insurers restricting new homeowners policies from 2023 through 2025, which matters because a CEA policy can only be sold on top of an underlying home policy.
Data
| 2017 | 13.29% |
|---|---|
| 2018 | 13.13% |
| 2019 | 13.89% |
| 2020 | 13.77% |
| 2021 | 13.16% |
| 2022 | 12.71% |
| 2023 | 12.54% |
| 2024 | 12.48% |
| 2025 | 12.48% |
5. California lost nearly 100,000 earthquake policies since 2020
The raw count is falling too. California had 1,687,712 earthquake policies in 2020 and 1,591,648 in 2025, a drop of about 96,000. Every lapsed policy is a household that has returned to carrying the full cost of a quake on its own. Because seismic risk does not change with the insurance cycle, the shrinking count represents a growing protection gap.
Inside the California Earthquake Authority
6. The CEA had 968,479 policies at the end of 2025
The California Earthquake Authority is the state’s largest residential earthquake insurer. It ended 2025 with 968,479 policies in force, a 3.2% decrease from year-end 2024. Homeowners policies make up the majority, with 596,653 basic and 181,993 Choice policyholders. The CEA sells only through participating insurers, so its growth depends on the health of the broader home insurance market.
7. The CEA writes about 61% of residential earthquake coverage
The CEA holds almost 61% of California’s residential earthquake insurance market, with private insurers writing the rest. It was created by legislation in 1995 and 1996 after the Northridge quake triggered an availability crisis. At the peak of that crisis, the Department of Insurance reported that 95% of the homeowners market had stopped or severely restricted new sales.
8. The CEA can pay about $19 billion in claims
A major earthquake insurer has to survive the very catastrophe it covers. The CEA reports about $19 billion in claim-paying ability on about $900 million in annual premium revenue. The CEA is not-for-profit and privately funded, and by law only 6% of its premium income can go to operating expenses. The CEA describes that capacity as sufficient to pay claims from even a devastating earthquake.
9. CEA participating insurers fell to 68.5% of the market
The CEA’s reach depends on the insurers that sell its policies. Their share of California’s residential market peaked at 80.6% in 2015 and stood at 68.5% in 2025. From 2023 through 2025, participating insurers’ residential policy counts fell by 974,357, while non-participating insurers gained 946,562. A CEA policy can only be offered on top of a participating insurer’s home policy, so this shift limits access.
What earthquake coverage costs
10. California homeowners paid an average of $1,440 for earthquake coverage
The average earthquake premium on a California homeowners policy was $1,440.11 in 2025, up about 39% from $1,033.41 in 2017. Coverage costs far less for renters and condo owners: the average earthquake premium was $87.27 for renters and $538.03 for condominium owners. Those averages blend every region and deductible, so a quote for a specific older home near a major fault can land well above or below them.
11. CEA deductibles run from 5% to 25% of the coverage limit
Earthquake deductibles work differently from standard home deductibles. CEA homeowners can choose a deductible of 5%, 10%, 15%, 20%, or 25%, calculated as a share of the dwelling limit. Homes with a dwelling limit above $1 million, or pre-1980 raised-foundation homes without a verified retrofit, can choose only 15%, 20%, or 25%. Loss of Use coverage has no deductible.
12. A 10% deductible on a $300,000 home means $30,000 out of pocket
Percentage deductibles add up quickly. Oregon’s regulator gives the example of a home with $300,000 in dwelling coverage and a 10% deductible: the owner pays the first $30,000 before insurance contributes. The NAIC says earthquake deductibles usually run 10% to 20% of the coverage limit, and Washington’s regulator puts the typical range at 10% to 25%. In practice, the coverage is designed to pay for severe damage rather than minor repairs.
13. A seismic retrofit can cut CEA premiums by up to 25%
Strengthening an older house pays off at renewal. The CEA offers premium discounts of up to 25% for qualifying homes that have been seismically retrofitted to California standards. Retrofitting also opens up lower deductible options for pre-1980 raised-foundation homes. The discount rewards the same work that reduces the chance of a house sliding off its foundation.
14. Retrofit grants of up to $3,000 have helped fund 40,000 retrofits
California helps pay for that work. The Earthquake Brace + Bolt program offers grants of up to $3,000 toward a retrofit that typically costs $3,000 to $7,000 when done by a licensed contractor. Its parent program reports providing over $100 million to help homeowners complete more than 40,000 retrofits to date. Income-eligible households can qualify for supplemental grants on top of the base amount.
How likely the next major quake is
15. California faces a greater than 99% chance of a magnitude 6.7 quake in 30 years
The USGS forecast known as UCERF3 puts the likelihood of one or more magnitude 6.7 or larger earthquakes in California over 30 years at greater than 99%, counting from 2014. The odds of larger events statewide are:
- Magnitude 7.0 or larger: 93%
- Magnitude 7.5 or larger: 48%
- Magnitude 8.0 or larger: 7%
A magnitude 6.7 matches the 1994 Northridge earthquake, the costliest U.S. quake for insurers.
16. Los Angeles and San Francisco both face high odds
The same USGS forecast breaks the risk down by region. Over 30 years, the chance of a magnitude 6.7 or larger quake is 72% in the San Francisco region and 60% in the Los Angeles region. Thirty years is roughly the length of a typical mortgage, which is why scientists frame the odds that way. Homeowners in California are more likely than not to face a damaging regional quake while paying off their home.
17. About 143 million Americans could experience damaging shaking
Earthquake risk extends far beyond California. A USGS study estimated that 143 million people, about 46% of the contiguous U.S. population, live where potentially damaging shaking could occur at relatively infrequent intervals. The estimate used 2013 population data and the 2014 national hazard model. In the central U.S. alone, the New Madrid seismic zone covers parts of eight states that together hold about 15% of the nation’s total economic exposure.
18. 28 million people live where damaging shaking is relatively frequent
A smaller group faces much more frequent risk. The same USGS study found about 28 million people, roughly 9% of the population, could experience potentially damaging shaking at relatively frequent intervals, and 57 million, or about 18%, at moderately frequent intervals. For the most exposed group, shaking at that level has about a 50% chance of occurring within 50 years.
What earthquakes cost
19. Earthquakes cost the U.S. an estimated $14.7 billion a year
A joint FEMA and USGS study estimated annualized earthquake losses of $14.7 billion per year to the national building stock, in 2022 dollars. That is a 140% increase over the 2017 estimate of $6.1 billion, driven by updated building inventories and hazard data. The figure is a long-term average, and the report treats it as a minimum because it excludes infrastructure and indirect economic losses. The risk is not theoretical: FEMA notes the U.S. had 28 earthquakes of magnitude 6.0 or greater in the decade before the study.
20. California accounts for 65% of expected losses
Losses concentrate on the West Coast. California alone accounts for about 65% of annualized losses, or $9.6 billion a year, and California, Oregon, and Washington together account for 78%, or $11.6 billion. Washington and Oregon rank second and third, so owners in the Pacific Northwest, including Oregon, face meaningful exposure too. California’s share of the human toll is even larger: in a 250-year earthquake scenario, the state accounts for 77% of displaced households and 76% of short-term shelter needs.
21. Los Angeles County faces $2.68 billion in annual expected losses
No county comes close to Los Angeles. Its estimated annualized loss of $2.68 billion is more than three times that of second-ranked Santa Clara County. The figure reflects both high seismic hazard and an enormous concentration of buildings. Nationally, the study put total building and contents exposure at about $107.8 trillion.
22. Northridge caused $15.3 billion in insured losses
The January 1994 Northridge earthquake remains the costliest U.S. quake for insurers. Its insured losses were $15.3 billion when it occurred, or about $33.0 billion in 2024 dollars, according to Aon figures published by Triple-I. That is nearly four times the inflation-adjusted insured loss of the 1906 San Francisco earthquake, the second costliest. The 1989 Loma Prieta quake ranks third at about $2.4 billion in 2024 dollars, and the 2001 Nisqually quake in Washington is the costliest outside California at about $566 million.
23. Only half of Northridge’s $20 billion in residential damage was insured
Northridge also showed how much damage falls outside insurance. The CEA, citing the Seismic Safety Commission, says the quake caused an estimated $20 billion in residential damage alone, and only half of it was covered by insurance. The magnitude 6.7 quake struck a fault no one knew existed, and the market fallout that followed led to the CEA’s creation in 1996.
Earthquake coverage outside California
24. Western residents are nearly three times as likely to have coverage
A 2023 consumer survey by Triple-I and Munich Re found that more than 37% of residents in the western U.S. reported buying earthquake coverage, almost three times the rate in other regions. Premiums show the same pattern: California accounted for $3.58 billion of the $6.33 billion in U.S. earthquake premiums written in 2024. Washington ranked second at $464 million.
25. About 15% of insured Oregonians carried earthquake coverage
Oregon’s regulator found that about 14.8% of Oregonians with homeowners coverage also had earthquake coverage in its 2017 data call. Take-up ranged from 17.2% in the Willamette Valley to 6.3% in Eastern Oregon. For a sample Multnomah County home with a 10% deductible, annual premiums ranged from $126 to $1,043, a reminder of how much quotes can vary by insurer.
How to protect your home from earthquake losses
The numbers point to a few practical steps:
- Confirm what your policy excludes. Standard homeowners, renters, and business policies do not cover earthquake damage, so coverage has to be added by endorsement or a separate policy.
- Pick a deductible you could actually pay. A 10% deductible on a $300,000 home means $30,000 out of pocket, so weigh savings against a realistic emergency fund.
- Retrofit an older raised-foundation home. FEMA notes that each $1 spent on retrofitting existing buildings can avoid about $3 in losses, and CEA policyholders can earn up to a 25% discount.
- Insure the contents of a unit, too. Condo owners and renters can add earthquake coverage to condo insurance or a renters policy at a fraction of homeowners prices.
- Compare insurers. Earthquake premiums vary widely, so review our carrier directory and request quotes before choosing.
Frequently Asked Questions
Does homeowners insurance cover earthquakes?
No. Standard homeowners, renters, and business policies do not cover earthquake shaking damage, although fire or burst-pipe damage after a quake may be covered. Coverage has to be bought separately, and only 12.48% of California residential policies included earthquake coverage in 2025.
How much does earthquake insurance cost in California?
The average earthquake premium on a California homeowners policy was $1,440.11 in 2025, compared with $87.27 for renters and $538.03 for condominium owners. Your price depends on location, construction, home age, deductible, and retrofit status.
How do earthquake deductibles work?
They are a percentage of your coverage limit, not of the loss. CEA homeowners choose from 5% to 25%, and a 10% deductible on $300,000 of dwelling coverage means the owner pays the first $30,000 of damage.
What are the odds of a major earthquake in California?
USGS scientists put the chance of a magnitude 6.7 or larger quake somewhere in California within 30 years at greater than 99%. The odds are 60% for the Los Angeles region and 72% for the San Francisco region over the same period.
Is earthquake insurance worth it outside California?
It depends on your local hazard, but the exposure is broad. About 143 million people in the contiguous U.S. could experience potentially damaging shaking, and Washington and Oregon rank second and third for expected annual losses after California.