When the ground shifts beneath your home, the aftermath can be as unsettling as the quake itself. From cracked foundations to collapsed walls, the damage left behind is often devastating—and the insurance claims process can feel just as overwhelming.
If you’re a homeowner asking how to file an earthquake insurance claim or what your policy actually covers, you’re not alone. This guide breaks down everything you need to know about earthquake insurance claims, how payouts are calculated, and when it’s time to call in legal support.
What Is Earthquake Insurance and Why Do You Need It?
Earthquake insurance is a type of coverage designed to help homeowners recover from the damage caused by seismic activity. Most standard homeowners insurance policies do not cover earthquake-related losses. That means without a specific earthquake rider or standalone policy, your home could be left vulnerable.
Even in states like Texas and Oklahoma—where earthquakes were once rare—the need for this type of coverage is increasing. According to a 2016 report by the Congressional Research Service, the number of earthquakes of magnitude 3.0 or greater in the central United States increased sharply after 2009.
From 1973 to 2008, the region averaged just 24 such quakes per year. That average jumped to 193 per year between 2009 and 2014, and climbed further to an estimated 330 per year by early 2016. Central Oklahoma alone accounted for more than 50% of these events, and in 2016, the state recorded its largest-ever earthquake—a magnitude 5.8 near Pawnee.
In Texas, regions such as the Dallas-Fort Worth area and the Permian Basin have also seen notable seismic increases linked to deep-well wastewater injection associated with oil and gas production. These developments have prompted updates to national and state seismic hazard maps, changing how insurers assess risk in these regions.
Whether you live along a fault line or in an area newly prone to tremors, having earthquake insurance could be the difference between rebuilding and financial ruin.
What Does Earthquake Insurance Typically Cover for Homeowners?
A common misconception is that earthquake insurance covers every type of damage caused by a quake. In reality, the scope of coverage can vary significantly depending on your policy and location. However, most earthquake policies include:
- Structural damage to your home, including walls, ceilings, chimneys, and foundations
- Detached structures (if added), such as garages, sheds, and guest houses
- Personal property loss, for items damaged or destroyed during the quake (based on policy limits)
- Living expenses if your home is uninhabitable and you need temporary housing
Not covered:
- Damage to vehicles
- Landscaping and fences
- Sinkholes or flooding caused by quake-related water line breaks (may require separate endorsements)
Understanding what your policy does not cover is just as important as knowing what it does—especially when preparing for a claim.
Most earthquake policies are sold as endorsements or standalone coverage, and often through state-run plans or specialty insurers—especially in high-risk areas. Availability and pricing can vary widely by ZIP code, construction type, and year built. In regions prone to seismic activity, premiums and deductibles may be higher, and retrofitting requirements may apply to older homes.
How Is an Earthquake Insurance Claim Calculated?
This is where things get tricky—and where many policyholders are caught off guard. Earthquake insurance policies typically come with percentage-based deductibles rather than flat-dollar amounts. These deductibles often range from 2% to 20% of your home’s insured value.
Example: If your home is insured for $400,000 and your policy has a 15% deductible, you’d need to cover the first $60,000 in damage out of pocket before your insurance kicks in.
Claims are calculated based on:
- The severity and scope of damage
- Your home’s insured value
- Age and structural condition of your home
- Regional seismic risk assessments
Insurers may also bring in engineers or adjusters to verify whether the damage was truly caused by an earthquake. Unlike many other policies, earthquake insurance often applies the deductible separately to each category of loss—such as dwelling, contents, and loss of use—which can significantly reduce your payout.
If you disagree with the insurer’s conclusions, legal support may be necessary to challenge the findings.
Steps to Take Immediately After an Earthquake
This section is informed by FEMA’s official guidance on earthquake preparedness and response. If you’ve just experienced an earthquake, taking the right steps early can make a major difference in the success of your claim:
Prioritize Safety:
Evacuate if needed, check for gas leaks, and avoid unsafe structures. Be aware that aftershocks can occur minutes, days, or even months after the main quake, potentially causing additional damage to already weakened structures.
Document the Damage:
Take clear, time-stamped photos and videos of all damage to your home and property. FEMA advises inspecting your chimney for unnoticed damage that could lead to fires and checking for gas, electrical, sewer, and water line damages to avoid fire and hazardous leaks.
Report the Claim Promptly:
Notify your insurance company as soon as possible. Some policies have strict timelines.
Avoid Premature Repairs:
Temporary repairs to prevent further damage are encouraged—but avoid permanent fixes until your claim has been evaluated.
Request an Independent Inspection:
You are entitled to get a second opinion if you suspect the adjuster undervalued your claim.
Common Pitfalls in Earthquake Insurance Claims
Even with the right coverage, earthquake insurance claims can be fraught with challenges. Below are some of the most common—and costly—issues homeowners face, informed by FEMA and industry best practices.
Underpayment or Claim Undervaluation
Insurance adjusters may downplay the extent of the damage or misclassify the root cause, especially if structural issues existed prior to the quake. In many cases, the burden falls on the homeowner to prove the damage was directly caused by seismic activity. Having your own inspection or engineering report can be crucial here.
Delays in Processing
After major seismic events, insurers can be overwhelmed by the volume of claims. It may take weeks or even months to get an inspection scheduled or a claim processed. FEMA emphasizes the importance of filing your claim as soon as possible and following up frequently to avoid being deprioritized.
In the meantime, FEMA may offer limited assistance to help make your home safe, sanitary, and functional—such as temporary repairs or support for essential utilities—while your private insurance claim is being processed. Delays can also impact your eligibility for federal disaster assistance if insurance determinations are pending.
Denied Claims
Insurers may argue that damage was caused by something other than the earthquake, such as poor maintenance, soil movement unrelated to seismic activity, or pre-existing construction flaws.
To counter this, FEMA recommends gathering comprehensive documentation and, if needed, obtaining a denial letter for possible federal assistance. Legal assistance can also help challenge these denials.
Policy Loopholes and Exclusions
Many homeowners are caught off guard by exclusions buried in policy language. For example, damage to swimming pools, fences, or landscaping may not be covered. FEMA also notes that policies can exclude indirect damage or limit reimbursement for personal property unless specifically listed. Reviewing your policy carefully—and before disaster strikes—can help prevent surprises.
When faced with these roadblocks, homeowners may have no choice but to challenge the insurer’s decision—especially if the damage is severe and the financial loss is significant. Legal representation can ensure your rights are protected throughout the process.
When to Consider Hiring an Earthquake Damage Lawyer
If you’re dealing with a delayed, denied, or undervalued earthquake insurance claim, it may be time to consult an attorney. A qualified earthquake damage lawyer can:
- Review your policy for hidden exclusions or misleading terms
- Conduct independent damage assessments
- Challenge unfair adjuster evaluations
- File an earthquake insurance claim lawsuit when negotiation fails
Legal support becomes especially important when your insurer refuses to negotiate in good faith.
At Daly & Black, P.C., we represent policyholders—not insurance companies—and we fight tooth and nail in pursuit of every dollar owed to you under your policy
FAQ
What does earthquake insurance typically cover for homeowners?
It typically covers structural damage, personal property, detached structures (if added), and temporary housing expenses if your home is uninhabitable. Exclusions often include landscaping, vehicles, and flooding.
What should I do immediately after an earthquake to support my claim?
Ensure safety, document all damage with photos and videos, report your claim quickly, avoid permanent repairs too soon, and consider getting an independent inspection.
Why should I consider hiring a lawyer for an earthquake insurance claim?
If your claim is denied, underpaid, or delayed—or if your insurer is acting in bad faith—a lawyer can help you pursue full compensation through negotiation or litigation.
Get Legal Support for Your Earthquake Insurance Claim
Navigating earthquake insurance claims isn’t just about paperwork—it’s about making sure you’re not left with repair bills your insurer should cover. If your claim has been delayed, denied, or underpaid, Daly & Black, P.C. is ready to fight for the compensation you may be entitled to.
Our team has deep experience holding insurance companies accountable across Texas, and other quake-prone regions. We’ll review your policy, assess your damage, and—if necessary—take your case to court.