What to Know About Earthquake Insurance in San Francisco

Earthquake insurance is a key consideration for San Francisco homeowners, buyers, and renters. While it carries unique deductibles and exclusions, it offers essential protection in a region where seismic activity is a part of daily life. By understanding how policies are structured, what they cover, and how premiums are determined, residents can make informed choices that protect their property and financial stability.

Standard homeowners insurance policies typically do not cover damage caused by earthquakes. This means that property owners in San Francisco need to get a separate policy for this type of coverage. This insurance is structured to cover damages caused directly by seismic activity, including the cost of repair or rebuilding. These policies often have higher deductibles than traditional insurance, but they provide otherwise unavailable protection.

The coverage can extend beyond the structure itself. Depending on the policy, earthquake insurance may also help with personal property damage and additional living expenses if your home becomes uninhabitable. Because San Francisco’s building styles and density are so varied, it is essential to review each policy closely to see exactly what is included.

Deductibles for earthquake insurance San Francisco policies are not flat fees but a percentage of your property's value. A standard deductible might be anywhere from 10 to 25 percent of the coverage limit. For example, a $1 million home with a 15 percent deductible would require you to pay $150,000 out of pocket before the insurance company begins to cover the remaining losses.

This structure means you should assess your financial readiness when selecting a deductible. Policies with a lower deductible usually have higher premiums, while higher deductibles reduce your premium costs but increase your out-of-pocket responsibility after a quake. Evaluating this trade-off is a central part of preparing for coverage.

Earthquake insurance has unique considerations for single-family homes, condominiums, and rental properties in San Francisco. For condos, the insurance may include a master policy held by the homeowners association and individual coverage purchased by unit owners. As a buyer, you should review the association’s agreements to confirm what is already covered.

For rental properties, a landlord often needs earthquake insurance to protect their structural investment. Tenants may also want to purchase a separate policy to safeguard their personal belongings. The specifics vary, but every housing type requires a tailored approach to ensure you have adequate protection.

A policy may also include coverage for personal property, but there are often limits that apply. High-value items such as jewelry, artwork, or electronics might require a special endorsement or additional coverage. It is common for standard earthquake policies to restrict reimbursement for these categories unless they are specifically included.

Conducting a household inventory helps you understand the level of protection you need. This process also makes filing a claim more straightforward in the aftermath of a quake. Proving the extent of personal property loss can be difficult without proper documentation.

When a home is damaged and cannot be lived in, earthquake insurance may cover temporary housing and related costs. These expenses can include hotel stays, rental homes, and meals. This part of coverage is especially valuable in San Francisco, where temporary housing is often expensive and scarce after a disaster.

The limits for additional living expense coverage can vary by policy. You should review these limits closely to ensure you would have enough support to maintain stability while your home is being repaired. Some policies may offer time-based coverage, such as up to 12 months, while others provide a fixed dollar amount.

Most residential earthquake insurance San Francisco policies are underwritten by the California Earthquake Authority (CEA). The CEA is a publicly managed, privately funded organization created after the 1994 Northridge earthquake. It works with participating insurance companies to provide standardized earthquake coverage.

While the CEA sets specific terms, like the available deductible percentages, the participating insurers may still have differences in customer service and policy options. Buyers should compare companies carefully to ensure they work with a trustworthy provider.

Premiums are calculated based on a home’s location, age, construction materials, and retrofitting. Homes built on bedrock often receive lower rates than those on fill or soft soil, which are more prone to shaking. A structure with a reinforced foundation, bolted frames, and a retrofitted chimney may also qualify for a reduced premium.

Historic properties or homes that predate modern building codes may have higher premiums due to increased vulnerability. These factors make San Francisco’s housing stock diverse in pricing, so owners should request tailored quotes for accurate comparisons.

Not every type of damage is covered by earthquake insurance. Policies often exclude losses caused by fire, flooding, or landslides that occur after a quake, unless you purchase additional coverage. In some cases, you may need to pair earthquake insurance with flood or fire insurance to get comprehensive protection.

You should also remember that cosmetic damage may not be covered. For instance, minor cracks in drywall might fall below the deductible and be considered your responsibility. Understanding these exclusions in advance helps ensure that your expectations align with what the policy actually provides.

As property values rise in San Francisco, you should update your insurance coverage to reflect the current replacement costs. A policy written for a lower home value years ago may no longer provide enough protection if rebuilding expenses have increased. Regular policy reviews will prevent any gaps that could leave you underinsured.

This review process is also a good time to adjust your deductible, increase your personal property coverage, or evaluate new offerings through the CEA or private insurers. By staying proactive, you can maintain control over your financial readiness and ensure that your policy matches your evolving needs.

If you’re considering real estate in San Francisco, Novo Real Estate can guide you through the details that matter most. Their team connects clients with trusted local resources, answers questions about topics like earthquake insurance, and helps align each property decision with long-term security. Reach out to Novo Real Estate today to discuss earthquake insurance and take the next step with clarity and confidence.