What About Earthquake and Sinkhole Insurance?
Most standard homeowners insurance policies cover a wide range of risks fire, theft, windstorms, and more. But two major threats are almost always excluded: earthquakes and sinkholes. If you live in certain parts of the U.S., these exclusions could leave you dangerously exposed.
Here’s what you need to know about earthquake and sinkhole insurance in 2025 including where it’s essential, what it covers, and how much it costs.
Earthquake Insurance: Who Needs It?
Where Earthquake Risk Is Highest
- California is the most well-known high-risk zone, thanks to the San Andreas Fault.
- Oregon and Washington also sit near major fault lines and face Cascadia subduction zone threats.
- Parts of Utah, Nevada, Alaska, Missouri, and Tennessee are also considered at moderate-to-high risk.
Use the USGS Earthquake Map to check the risk in your area.
What Earthquake Insurance Covers
This coverage typically applies to:
- Structural damage from ground shaking
- Cracks in walls, foundations, chimneys
- Detached structures, like garages
- Loss of use (temporary relocation costs)
What’s NOT covered:
- Flood damage caused by earthquake (requires flood insurance)
- Landscaping, fences, or pools
- Pre-existing cracks or settling
Average Cost of Earthquake Insurance (2025)
Premiums vary widely based on location and home type:
- California (Los Angeles area): $800–$2,500/year
- Low-risk states: $100–$300/year
You’ll often face high deductibles (10–25% of your home’s value), so it’s designed for major events, not minor repairs.
Sinkhole Insurance: Is It Worth It?
What Are Sinkholes?
Sinkholes form when underground soil or limestone erodes, creating a sudden collapse. They can swallow vehicles, damage foundations, and render homes uninhabitable.
Where Sinkholes Are Most Common
- Florida (especially central Florida near Tampa and Ocala)
- Tennessee, Texas, Alabama, Missouri, Kentucky, and Pennsylvania
In Florida, insurers are required to cover “catastrophic ground collapse” under standard policies — but sinkhole damage that doesn’t make the home uninhabitable often requires additional coverage.
What Sinkhole Insurance Covers
- Damage to your foundation, flooring, walls
- Repairs to prevent further collapse
- Loss of use coverage (depending on policy)
Cost of Sinkhole Insurance
- Florida (high-risk zone): $300–$2,000/year added to your policy
- Low-risk states: Often not available or not necessary
Policies often require geological inspections before approval.
Should You Add Earthquake or Sinkhole Coverage?
| Scenario | Consider Adding |
|---|---|
| You live in California or the Pacific Northwest | Earthquake Insurance |
| You live in Florida’s “Sinkhole Alley” | Sinkhole Insurance |
| Your mortgage lender requires it | Either |
| You can’t afford large out-of-pocket repairs | Either |
| You live in a brick or older home | Earthquake Insurance |
| You’re in a slab foundation home in a karst-prone area | Sinkhole Insurance |
Final Thoughts
Earthquake and sinkhole events are rare but extremely costly when they do happen. If your region is even moderately at risk, adding one of these policies could be the difference between financial protection and devastation.
Speak to your insurance agent about the availability, deductibles, and inspection requirements for these endorsements in your state.
Next Up:
>> The Complete First-Time Homebuyer Insurance Checklist
