Does Renters Insurance Cover Earthquakes?

Earthquake damage can be a material concern in parts of the United States, but it is usually not included as a standard covered cause of loss under renters insurance.

Where coverage may begin

Ask whether renters earthquake coverage is offered through an endorsement or a separate policy. Terms may include distinct deductibles and rules for property damage or additional living costs.

An example that shows the distinction

If shaking knocks a television to the floor and damages your furniture, the standard renters policy may not respond to the earthquake damage itself, even though the same television might have been covered after a different insured event.

Where the protection can stop

A geographic hazard map doesn't tell you what your individual policy covers. Coverage for fires that follow earthquakes can have special treatment, so read the relevant contract wording.

Questions to ask before relying on the policy

Is earthquake coverage available for your rental address? How is its deductible calculated? Are personal property and loss of use both included?

Compare deductibles carefully

Earthquake insurance may apply a percentage deductible rather than the flat dollar deductible used for routine property claims. Check exactly what value the percentage is applied to.

A short checklist

• Compare the issued policy and declarations page, not just the summary shown in a quote.
• Keep written records, receipts and photographs when they would help establish what you own or what occurred.
• Confirm exclusions, special property limits and deductibles before assuming a particular loss will be paid.

Sources and further reading

• NAIC: U.S. state insurance departments
• NAIC: actual cash value versus replacement cost
• California insurance department: residential insurance consumer guide