Does Earthquake Insurance Coverage Have to Match My Home Insurance Coverage?

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March 11, 2025

When it comes to earthquake insurance, one of the most common questions homeowners ask is:
“Does my earthquake insurance coverage have to match my home insurance coverage?”

The answer? Not exactly. While some aspects need to align, you have flexibility in others. Let’s break it down.

What Coverage Must Match?

The dwelling coverage on your earthquake insurance policy must be at least equal to the dwelling coverage amount on your home insurance policy.

📌 Where to Find This:
Look at your home insurance policy under Coverage A—this is the amount that must match (or be higher) on your earthquake insurance policy.

However, while you can increase the dwelling coverage on your earthquake policy, you cannot lower it below what your home insurance provides.

Customizable Earthquake Insurance Coverages

Unlike home insurance, earthquake insurance gives you flexibility in how you protect other parts of your property:
✅ Other Structures (e.g., detached garages, pool, patios, fences, sheds)
✅ Personal Property (furniture, electronics, valuables)
✅ Loss of Use (temporary living expenses if your home is unlivable)

All of these are optional with earthquake insurance, meaning you can customize your coverage based on your needs and budget.

What’s Missing from Earthquake Insurance?

One key coverage that home insurance provides but earthquake insurance does not is Extended or Additional Replacement Cost.

Why Is This Important?

If a major disaster (like a wildfire or earthquake) causes widespread damage, the cost of labor and materials can skyrocket due to demand. Extended replacement cost coverage helps offset these price surges, typically offering 25%, 50%, or even 100% more coverage beyond your standard dwelling amount.

Since earthquake policies don’t offer this protection, homeowners might consider setting a higher dwelling coverage amount to help account for rising construction costs after a disaster.

Higher Dwelling Coverage = Higher Deductible

One thing to keep in mind: earthquake insurance deductibles are a percentage of your dwelling coverage amount—not a fixed dollar amount.

🔹 Example: If your earthquake policy has a 10% deductible and your dwelling coverage is $500,000, your out-of-pocket deductible would be $50,000 before coverage kicks in.

This means increasing your dwelling coverage will increase your deductible as well, so finding the right balance is key.

Get the Right Earthquake Coverage for Your Home

Understanding these differences can help you choose the right earthquake insurance policy and avoid costly mistakes.

📢 Want to protect your home from earthquake damage?
Get a free quote today at 👉 EarthquakeAgent.com