A: There could be unintended consequences. Insurance Incorporated has access to the top rated earthquake insurance companies. The deductible is an important consideration in earthquake insurance. Earthquake insurance covers damage to your home, personal belongings and additional living expenses if you need to temporarily live somewhere else after an earthquake. However, more at-risk states like Alaska, California, Oregon, and Washington have premiums as high as $800 per year, on average. A study by the U.S. Geological Survey estimates the probability of a magnitude 7.5 or greater earthquake in the New Madrid zone over the next 50 years is 7-10 percent. The company sets a $100,000 minimum coverage and a $500,000 maximum for coverage which is at par with most of the companies we reviewed. Earthquake Insurance . Homeowners can decide to purchase it, purchase a policy from another insurer or decline it altogether. Earthquake insurance is an added endorsement to your existing homeowner or renter’s policy, or a separate earthquake policy you buy. Your earthquake insurance deductible is a percentage of your home’s insured value. Standard homeowners and renters insurance policies typically don't include earthquake coverage, but you may add it to an existing homeowners insurance policy as an endorsement or purchase it as a separate policy. This amount of insurance is available for each natural disaster event. The CEA is a not-for-profit entity that was created in order to make earthquake insurance more readily available after the 1994 quake in Northridge, California. California law requires homeowners insurance companies to offer earthquake coverage to their homeowners insurance policyholders. However, these programs, also known as “last-resort insurance policies,” can be expensive. Another possible solution to increasing premiums and unavailable coverage is the use of climate data to help insurance companies and homeowners manage risk. Allstate is a good starting point for Earthquake Insurance shoppers. Being out $100 to $800 each year is much more favorable than rebuilding your entire home out of pocket. The California Earthquake Authority. Deductibles. Like any insurance policy, earthquake insurance premiums are based on a variety of factors. The earthquake insurance deductible typically is a percentage of the insured amount. In a word, the Earthquake Insurance Market report provides major statistics on the state of the Earthquake Insurance industry with a valuable source of guidance and direction for companies and individuals interested in the market. Reinsurance by the Government . Pros of Earthquake Insurance . You can also buy a stand-alone policy separate from your homeowner policy. Best earthquake insurance companies. California Earthquake Authority (CEA) offers earthquake insurance policies exclusively through the residential insurance companies listed below. Your insurance company must offer you earthquake insurance even if your property does not meet current Building Code and Health and Safety Code rules about bolting foundations and anchoring water heaters. You may get a discount if you retrofit. Earthquake premium rates are on the rise: during the last 12 months, we have noted that many insurance companies have increased their premium rates and, with large losses such as those in New Zealand and Japan, this is a trend likely to continue. Lloyd’s has announced the launch of a new parametric earthquake insurance policy in New Zealand designed to automatically pay customers within five days following a strong earthquake. The probability of an earthquake exceeding magnitude 6 over the same period is 25-40 percent. The companies with the three lowest earthquake insurance rates were Privilege Underwriters Exchange, Cincinnati Insurance Co. and Chubb/Federal, with average rates ranging from $0.60 to $1 for each $1,000 of coverage you need. A higher deductible may qualify you for discounts. With earthquake coverage, your deductible is based on a percentage of your overall policy limit. Home Insurance on the contrary is considered as unnecessary by many especially Indian households. However, home insurance that covers earthquakes is a must, especially in regions that are prone to these natural calamities.