Does renters insurance cover earthquakes?

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Renters insurance covers your personal belongings from damage, referred to as insurance risk. A hazard is an event that may damage your property and is specifically listed on your insurance policy. Common insurance risks include fire, lightning, theft, ice, snow, sleet, wind, hail, smoke, vandalism, and freezing.

But some events, including natural disasters, are not covered and require a separate policy.

Does renters insurance cover earthquakes?

Earthquakes, floods, government forfeitures, mudslides, law updates, sewage copies and potholes are all risks that homeowners’ insurance won’t cover, according to Hypo Insurance. This will require an additional rider or separate coverage.

Renters will need separate earthquake insurance coverage.

* Available as additional coverage

** Flood insurance is separate coverage

What is earthquake insurance?

Although earthquakes occur regularly in California, earthquake insurance is not required for California residents, according to the California Department of Insurance. However, it has been stated that “if you have California homeowners insurance, your company should offer to sell you earthquake insurance.”

Covering “ground movement” refers to shifts in the ground caused by an earthquake, according to Steve Wilson, senior insurance manager at Hippo Insurance. Aftershocks occur after an earthquake and can occur over a time period of up to 72 hours.

The Federal Emergency Management Agency (FEMA) has earthquake hazard maps that show the intensity and likelihood of seismic activity across the country. Even if you don’t live near a fault line, seismic activity as seen in Oklahoma can be caused by oil drilling activity, according to the Insurance Information Institute.

For renters who live in areas where earthquakes are rare, Wilson said most policy language provides coverage for “resulted damage.” For example, in New York City, earthquakes are not covered but if an earthquake causes a fire, the fire damage will be covered.

It is best to speak to your renters insurance company to determine if you need “land movement” coverage or if standard renters insurance is sufficient.

How much is earthquake insurance?

According to the Insurance Information Institute, “Earthquake insurance rates can vary widely [and] Deductibles for earthquake insurance plans are higher than those for regular homeowner or renter insurance, and are typically 5 to 15 percent of the policy limit.”

If you are a California resident and have trouble finding earthquake coverage, it is available from the California Seismic Authority (CEA).

Will renters insurance cover moving?

Loss of Use coverage, also known as Additional Living Expense or ALE, is included in most renters insurance policies and provides compensation for temporary housing when a hazard causes damage to make your rental unit habitable.

As for ‘loss of use’ and ‘extra living expenses’, a lot depends on your insurance carrier and varies by provider. Some carriers will compensate you for temporary housing. Others may have a list of housing alternatives.

Do not assume that your insurance company will pay additional living expenses, because the definition of housing varies by company.

If you are considering leaving your home due to earthquake damage, contact your renters insurance provider first and take detailed photos of the damage. Make sure to lock and secure the building as well.

What to do if you are damaged by an earthquake

After experiencing a disaster, Wilson recommends staying in touch with your renters insurance company to let them know what’s going on in your home and take the following steps when filing insurance claims:

Contact the insurance company to submit a claim in a timely manner. Also inform the landlord or property management company, as they are responsible for the building and structure. Take pictures of the damage before you dispose of it and clean it up. Prevent further damage to your property.

Customer service is key for renters in disaster-prone areas. Tenants need to understand the risks and get good coverage with an up-to-date policy.

Does your renters insurance provider communicate with you about how to evict and file claims when disaster approaches? Is your provider transparent about your coverage? Does your insurance company reach out proactively to help you? If not, consider changing your renters insurance company.

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Associate Editor, Insurance

Rhonda Lee is the Associate Insurance Editor of Personal Finance Insider covering life, auto, homeowners, and renters to consumers. Prior to joining Business Insider, she was a contributing writer for HuffPost with featured articles on politics,…

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