Is Earthquake Insurance Worth It in the Puget Sound Area?

Earthquake damage is excluded from standard homeowners, condo and renters policies in Washington. Whether earthquake coverage is worth buying depends on your home’s construction, your equity, your savings and how much risk you are willing to carry.

The risk in our region

The Puget Sound region faces several kinds of earthquakes: deep quakes like the 2001 Nisqually earthquake, shallow crustal faults such as the Seattle Fault and the South Whidbey Island Fault, and the Cascadia Subduction Zone off the coast. Scientists cannot predict when the next major quake will happen, but they agree the risk is real.

How the deductible works

Earthquake deductibles are a percentage of your dwelling limit, typically 5% to 25%. On a home insured for $800,000, a 10% deductible means the first $80,000 of damage is yours. That sounds large, but a serious quake can cause damage well beyond that, including foundation and chimney failure.

Questions to ask yourself

• Could I afford to repair or rebuild my home without insurance?
• How much equity would I lose if the home was badly damaged?
• Is my home bolted to its foundation, and has it been retrofitted?
• Is it on a slope, fill soil or near the water?
• If I own a condo, how large is my HOA’s earthquake deductible, and what would my share be?

For condo owners

Many condo associations carry earthquake coverage with very large deductibles, which can be passed to owners as special assessments. Earthquake loss assessment coverage on your HO-6 policy can protect you from that bill.

Seeing the real numbers

The best way to decide is to look at the actual premium at a few deductible levels. We can quote earthquake coverage alongside your home or condo policy. See our earthquake insurance page or call (425) 555-0100.