Is Earthquake Insurance Required? Here’s the Truth for Homeowners

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April 13, 2025

When you’re buying a home, you’ll likely be required to carry homeowners insurance or fire insurance before closing. But what about earthquake insurance—is it required by mortgage companies?

The short answer is: usually not. But there’s more to the story, and understanding the details could make a big difference in how you protect your property.

Do Mortgage Lenders Require Earthquake Insurance?

In most cases, mortgage lenders do not require you to purchase earthquake insurance to secure financing on a home—even in earthquake-prone areas like California. Unlike standard homeowners or fire insurance, earthquake coverage is considered optional in the eyes of most lenders.

However, there are exceptions.

When Might Earthquake Insurance Be Required?

While rare, we’ve seen certain lenders in high-risk zones require earthquake insurance as part of the mortgage agreement—especially for homes located near known fault lines or in regions with a history of seismic activity.

But overall, these instances are not the norm. In the vast majority of transactions, it’s up to you—the homeowner—to seek out and secure earthquake protection.

Why This Matters

Just because earthquake insurance isn’t required doesn’t mean it’s not necessary.

🏠 Your home is likely your largest investment
🌍 Earthquakes are unpredictable and potentially catastrophic
💸 Without earthquake coverage, you could face tens or hundreds of thousands of dollars in uninsured damage

If you’re relying on your regular homeowners policy to cover earthquake damage, here’s the hard truth: it won’t. Earthquake damage is excluded from standard homeowners insurance in nearly every case.

What Should Homebuyers Do?

If you’re purchasing a home—especially in a state like California, Oregon, or Washington—it’s wise to secure standalone earthquake insurance whether it’s required or not.

At Earthquake Agent, we help buyers and homeowners:
✔️ Compare earthquake insurance carriers
✔️ Customize policies based on property and risk level
✔️ Get coverage in place before the next big quake hits

Final Thoughts: Optional Doesn’t Mean Unnecessary

While most lenders don’t require earthquake insurance, that doesn’t mean you should skip it.
Remember: once an earthquake happens, you can’t buy or modify coverage until moratoriums are lifted. By then, it’s too late.

📍 Get peace of mind today—start your free quote at 👉 EarthquakeAgent.com