Does Homeowners Insurance Cover Earthquakes in Utah?
Utah homeowners often assume that if their home is insured, earthquake damage is included.
Usually, it is not.
Standard homeowners insurance typically does not cover earthquake damage. Earthquake protection generally needs to be added through a separate endorsement or purchased as a separate policy.
Utah Has a Real Earthquake Risk
Earthquakes are not just a California problem.
The Utah Insurance Department cites research showing a 43% chance of at least one magnitude 6.75 or greater earthquake occurring in the Wasatch Front region within a 50-year period. It also notes that hundreds of smaller earthquakes occur in the region each year.
That makes earthquake coverage worth discussing for Utah homeowners.
Imagine a Major Earthquake Damages Your Home
Suppose an earthquake causes major cracks in your foundation, damages walls, breaks plumbing, and makes part of your home unsafe to live in.
You call your homeowners insurance company expecting the repairs to be covered.
Then you discover your standard homeowners policy excludes earthquake damage.
Without separate earthquake insurance, you could be responsible for a large portion—or potentially all—of the repair costs yourself.
And if you still have a mortgage, the loan does not disappear just because the home was damaged.
What Can Earthquake Insurance Cover?
Depending on the policy, earthquake insurance may help cover:
Repairs to your home
Damage to attached structures
Personal belongings
Additional living expenses if you cannot stay in the home
Coverage varies by insurance company, so it is important to review the actual policy and limits.
Earthquake Deductibles Work Differently
One of the biggest differences with earthquake insurance is the deductible.
Instead of a flat deductible such as $1,000 or $2,500, earthquake deductibles are often calculated as a percentage of the coverage limit.
For example, if your home is insured for $500,000 and your earthquake deductible is 10%, the deductible could be $50,000.
Common earthquake deductibles may be 5%, 10%, or 20%, depending on the insurer and policy. In some policies, separate deductibles may apply to the dwelling, personal property, and other coverages.
That makes it especially important to understand the deductible before purchasing the policy.
Do Not Wait Until After an Earthquake
Earthquake insurance is something you need to consider before the ground starts moving.
The Utah Insurance Department notes that earthquake policies may have waiting periods, and insurers may temporarily stop offering new earthquake coverage after a recent earthquake.
You cannot wait until a major earthquake happens and then add coverage for the damage that already occurred.
Know What Your Homeowners Policy Actually Covers
Having homeowners insurance does not mean every type of disaster is automatically covered.
Earthquakes are a major example.
At Tommy Thomsen Insurance, we can review your homeowners policy, explain whether earthquake coverage is included, and discuss available earthquake insurance options.
Let’s Review Your Home Insurance
If you are not sure whether your home is protected from earthquake damage, now is the time to find out.
Request a homeowners insurance review through our website or call Tommy Thomsen Insurance at 801-982-7200.
We will explain your options in plain language and help you understand the protection available for your Utah home.
This article provides general insurance information and is not a guarantee of coverage. Earthquake coverage, deductibles, limits, exclusions, premiums, waiting periods, and claim payments vary by insurer, policy, property, and circumstances of the loss.