Standard homeowners policies exclude earth movement. Earthquake insurance covers physical damage to buildings and contents caused by earthquake shaking and, in some forms, by related landslides or tsunamis. It is usually purchased as a separate policy or an endorsement.

Coverage is subject to a deductible that is often a percentage of the insured value rather than a flat dollar amount. Because a major quake can produce widespread simultaneous losses, capacity is limited and pricing is driven by sophisticated seismic models. Government-backed programs exist in some high-risk regions.

Older buildings and those not retrofitted for seismic resistance present higher risk and may face restricted terms. Claims adjustment after a large event strains resources and can take months. Property owners in seismic zones must weigh the cost of coverage against the potential for catastrophic uninsured loss.

• Coverage for damage from earthquake shaking
• Usually separate from standard homeowners policies
• Often carries a percentage deductible
• Capacity and pricing influenced by catastrophe models