Earthquakes may not be the first natural disaster that comes to mind in our region, but from time to time, homeowners ask whether they should add earthquake coverage to their insurance policy. The answer isn’t one-size-fits-all, so here’s what to know before deciding.
What Is an Earthquake Endorsement?
Most standard homeowners insurance policies exclude earthquake damage. If you want that protection, you have to purchase an earthquake endorsement (sometimes called a rider) or a separate earthquake policy.
This coverage is designed to help pay for repairs or rebuilding if an earthquake causes damage to your home, garage, or other covered structures.
How Deductibles Work
One of the biggest differences with earthquake endorsements is the deductible. Instead of a flat amount—like $1,000 or $2,500—earthquake deductibles are usually percentage-based.
For example, if your home is insured for $400,000 and your earthquake deductible is 15%, you’d be responsible for $60,000 in damage before insurance begins to pay.
Cost and Availability
The cost of an earthquake endorsement varies by location, the age and construction of your home, and the coverage amount. While premiums in areas with low earthquake activity are generally lower, the deductible structure still applies.
How Common Are Earthquakes in Our Area?
Our region doesn’t experience frequent or severe earthquakes compared to places like California or Alaska. That said, minor tremors have been recorded in North Carolina over the years. For some homeowners, even a small chance of a large event is reason enough to consider the coverage.
Who Might Consider It?
Earthquake endorsements can make sense for homeowners who:
- Want maximum peace of mind, even in low-risk areas.
- Live in older homes or structures that could be more vulnerable to damage.
- Prefer having coverage in place for unlikely but potentially costly events.
The Bottom Line
An earthquake endorsement isn’t necessary for everyone, but it is an option available to homeowners who want to add an extra layer of protection. Like any insurance decision, the best choice depends on your home, your budget, and your comfort level with risk.
If you’d like to talk through your options or compare what endorsements are available, our team is always happy to help you find the coverage that feels right for you.