Earthquake insurance is a specialized type of property insurance that covers damages to a home, personal belongings, and other structures resulting from an earthquake. This coverage is typically not included in standard homeowners’ or renters’ insurance policies and is often purchased as a separate policy or as an endorsement to an existing policy. Earthquake insurance may have higher deductibles and premiums, particularly in areas with a higher risk of earthquakes.
Related real estate terminology:
Homeowners insurance
Renters insurance
Endorsement
Deductible
Premium
Replacement cost
Actual cash value (ACV)
Loss of use coverage
Catastrophe insurance
References:
- Investopedia: Earthquake Insurance Definition
- NerdWallet: Earthquake Insurance: What It Is and Why You Need It
- Insurance Information Institute: Understanding Earthquake Insurance