How to Get Earthquake Insurance in Phoenix

Phoenix, Arizona, is often associated with desert landscapes, sweltering summers, and vibrant urban growth. But beneath its sunbaked surface lies a geologically active region with the potential for seismic activity. While Arizona is not located along major tectonic plate boundaries like California, it is not immune to earthquakes. The state has experienced over 300 earthquakes of magnitude 3.0 or higher in the past two decades, with notable events near the Arizona–Mexico border and in the Sedona and Flagstaff regions. Though major quakes are infrequent in the Phoenix metro area, the risk is real—and growing as urban development expands over fault lines and older infrastructure ages.

Homeowners in Phoenix face a critical decision: should they protect their most valuable asset with earthquake insurance? Most standard homeowners insurance policies in Arizona explicitly exclude damage caused by earthquakes. Without specific coverage, a single seismic event could result in tens or even hundreds of thousands of dollars in unreimbursed repair costs. Yet, despite this risk, earthquake insurance remains underutilized in the region. Many residents mistakenly believe that because earthquakes are rare, they are not worth insuring against. Others are deterred by perceived high premiums or complex enrollment processes.

This guide provides a comprehensive, step-by-step roadmap for obtaining earthquake insurance in Phoenix. Whether you’re a new homeowner, a long-time resident reevaluating your coverage, or a renter seeking protection for personal belongings, this tutorial will equip you with the knowledge to make informed, strategic decisions. We’ll break down the mechanics of earthquake insurance, clarify common misconceptions, outline best practices for selection and implementation, recommend trusted tools and resources, share real-world case studies, and answer the most pressing questions homeowners face.

By the end of this guide, you will understand exactly how to secure earthquake insurance in Phoenix—what to look for, what to avoid, how to reduce costs, and how to ensure your property and peace of mind are protected when the ground shakes.

Step-by-Step Guide

Step 1: Understand What Earthquake Insurance Covers (and Doesn’t)

Earthquake insurance is a specialized endorsement or standalone policy designed to cover damage to your home and personal property caused by seismic activity. Unlike standard homeowners insurance, which covers fire, wind, theft, and other perils, earthquake coverage is typically excluded unless explicitly added.

In Phoenix, earthquake insurance generally covers:

• Structural damage to your home’s foundation, walls, roof, and attached structures like garages
• Damage to personal belongings such as furniture, electronics, appliances, and clothing
• Additional living expenses (ALE) if your home becomes uninhabitable due to earthquake damage
• Debris removal and temporary repairs needed to prevent further damage

However, there are important exclusions to be aware of:

• Land damage (e.g., sinkholes, soil liquefaction) is typically not covered unless directly tied to structural failure
• Flood damage resulting from broken water mains or levees is excluded—this requires separate flood insurance
• Damage to swimming pools, patios, fences, and detached structures like sheds may be limited or excluded depending on the policy
• Some policies cap coverage for high-value items like jewelry or artwork unless scheduled separately

It’s crucial to read your policy’s fine print. Coverage varies significantly between insurers, and some policies offer “limited earthquake coverage” with low payout caps or high deductibles that may leave you underprotected. Always request a full copy of the policy wording before purchasing.

Step 2: Assess Your Risk Level in Phoenix

While Phoenix is not in a high-seismic zone like California’s San Andreas Fault, it is not risk-free. The U.S. Geological Survey (USGS) classifies much of central Arizona, including the Phoenix metropolitan area, as having a “moderate” potential for earthquake damage. The region lies near the Salt River Fault and the Maricopa Fault Zone, both capable of generating quakes above magnitude 5.0.

Factors that increase your risk include:

• Proximity to known fault lines (e.g., near the Salt River, near the Gila River basin)
• Soil composition—areas with loose, sandy, or fill soil are more prone to liquefaction during shaking
• Age and construction type of your home—homes built before 1975 often lack modern seismic reinforcements
• Home elevation—lower-lying areas near riverbeds or alluvial fans may experience amplified ground motion

Use the USGS National Seismic Hazard Map (available online) to enter your ZIP code and view your estimated probability of ground shaking over the next 50 years. In Phoenix, the likelihood of experiencing damaging shaking (MMI VI or higher) is approximately 10–15% over five decades—significantly lower than California but still substantial enough to warrant consideration.

Additionally, consult your city’s building department. Many Phoenix suburbs, including Mesa, Tempe, and Chandler, have updated building codes since the 1990s requiring enhanced structural integrity for new homes. If your home was built after 2000, it likely has better seismic resilience—but that doesn’t eliminate the need for insurance.

Step 3: Review Your Existing Homeowners Policy

Before purchasing earthquake insurance, thoroughly examine your current homeowners policy. Look for the “Exclusions” section—earthquake damage will almost certainly be listed there. Some policies may offer a small “earthquake endorsement” as an optional add-on, while others require a completely separate policy.

Check your policy’s dwelling coverage limit (Coverage A). This is the maximum amount your insurer will pay to rebuild your home. Earthquake insurance typically requires you to insure your home for at least 80% of its replacement cost to avoid coinsurance penalties. If your current coverage is below this threshold, you’ll need to increase it before adding earthquake protection.

Also note your deductible structure. Standard homeowners policies often have a percentage-based deductible (e.g., 1–5% of your dwelling coverage). Earthquake policies usually have higher deductibles—commonly 10–20% of the insured value. For a home valued at $400,000, a 15% deductible means you’d pay $60,000 out of pocket before coverage kicks in. This may seem high, but it’s standard industry practice to mitigate risk.

Ask your insurer for a written summary of your current coverage limits, deductibles, and any existing endorsements. Don’t rely on verbal assurances—everything must be documented.

Step 4: Research Available Earthquake Insurance Providers in Arizona

As of 2024, earthquake insurance in Arizona is offered primarily through private insurers and a few state-backed programs. There is no state-run earthquake insurance pool in Arizona like California’s CEA (California Earthquake Authority), so your options are limited to private carriers.

Major insurers offering earthquake coverage in Phoenix include:

• State Farm – Offers earthquake endorsements on most homeowners policies with flexible deductible options
• Allstate – Provides standalone earthquake policies with optional coverage for personal property and loss of use
• USAA – Available to military members and veterans; includes comprehensive earthquake coverage with lower deductibles for qualifying homes
• Amica Mutual – Known for high customer satisfaction and customizable earthquake add-ons
• Travelers – Offers both endorsement and standalone policies with optional coverage for swimming pools and landscaping
• Chubb – Premium provider offering high-limit coverage for luxury homes and high-value contents

Smaller regional insurers like Arizona Farm Bureau and Golden Rule Insurance may also offer competitive rates for local residents.

When comparing providers, evaluate:

• Claim settlement history (check the Arizona Department of Insurance’s complaint ratios)
• Customer service responsiveness
• Availability of digital claims filing and mobile app support
• Whether the policy includes coverage for secondary structures and personal property

Never choose a provider based solely on price. A low premium with a 20% deductible and poor claims service may cost you far more in the long run.

Step 5: Get Multiple Quotes and Compare Coverage Details

Obtain at least three written quotes from different insurers. Use the same home value, deductible preference, and coverage limits for each quote to ensure accurate comparisons.

Ask each provider to clarify:

• What is the deductible percentage and is it applied to the dwelling, personal property, and ALE separately?
• Are there any coverage caps for specific items (e.g., $5,000 for electronics)?
• Does the policy cover code upgrades required after a quake (e.g., bringing a 1980s home up to 2020 seismic codes)?
• Is there a waiting period after purchase before coverage becomes effective?
• Are there discounts for seismic retrofits, such as foundation bolting or shear wall installation?

Many insurers offer discounts of 5–15% if your home has been retrofitted with earthquake-resistant features. These may include:

• Foundation bolting to anchor the house to its slab
• Installation of shear walls or cross-bracing in crawl spaces
• Strapping of water heaters and gas appliances
• Reinforced masonry or steel framing

Take photos and obtain documentation of any upgrades. Submit them with your application—this can significantly reduce your premium.

Step 6: Complete the Application and Disclose All Relevant Information

When applying for earthquake insurance, full disclosure is essential. Misrepresenting your home’s age, construction type, or prior damage can lead to claim denial.

You’ll typically need to provide:

• Home address and ZIP code
• Year built and square footage
• Construction materials (wood frame, brick, stucco, etc.)
• Foundation type (slab, crawl space, basement)
• Roof type and condition
• Details of any prior earthquake or seismic damage
• Photos of structural retrofits (if applicable)

Some insurers require a home inspection before issuing a policy, especially for homes over 30 years old. The inspection is usually free and focuses on structural integrity, not cosmetic issues.

Once you’ve submitted your application, expect a response within 3–7 business days. If approved, you’ll receive a policy packet via email or mail. Review every page carefully before signing.

Step 7: Pay Premiums and Maintain Coverage

Earthquake insurance premiums in Phoenix typically range from $300 to $1,200 annually, depending on home value, deductible, construction type, and location. Premiums are usually paid annually, though some insurers offer monthly payment plans.

Set up automatic payments to avoid lapse. A lapse in coverage—even for a single day—can void your policy, and reinstatement may require a new inspection and higher rates.

Renew your policy annually and notify your insurer of any major renovations, additions, or changes in home value. If you upgrade your kitchen or add a detached garage, your coverage limit may need adjustment.

Keep a digital and physical copy of your policy, along with an inventory of your personal belongings. Update your inventory every 6–12 months.

Best Practices

Choose a Higher Deductible to Lower Premiums

One of the most effective ways to reduce your annual premium is to select a higher deductible. While a 15% or 20% deductible may seem daunting, it can reduce your premium by 30–50% compared to a 5% deductible. For example, a $450,000 home with a 5% deductible might cost $1,100/year, while a 15% deductible could bring that down to $550/year. If you have emergency savings to cover a $67,500 out-of-pocket cost, the long-term savings make sense.

Bundle with Other Insurance Policies

Many insurers offer multi-policy discounts. If you already have auto, umbrella, or renters insurance with the same company, ask about bundling your earthquake coverage. Discounts of 10–15% are common.

Invest in Seismic Retrofits

Structural upgrades not only reduce your premium—they also increase your home’s safety and resale value. In Phoenix, a foundation bolt retrofit typically costs $3,000–$6,000 and can be completed in 1–2 days. Water heater strapping costs under $100. These are small investments for substantial long-term protection.

Check with the Arizona Geological Survey for rebate programs. Some municipalities offer grants or low-interest loans for seismic retrofitting, particularly for low-income or elderly homeowners.

Document Everything

Before purchasing insurance, take high-resolution photos and videos of every room, appliance, and valuable item. Store them in a cloud-based vault (Google Drive, Dropbox, or iCloud) and print a physical copy. Include receipts for expensive items like electronics, jewelry, and artwork. This documentation is critical when filing a claim.

Understand Your Policy’s Claims Process

Know the steps you must take after an earthquake:

• Ensure your safety first—evacuate if necessary
• Document damage with photos and videos before making temporary repairs
• Do not discard damaged items until an adjuster inspects them
• Submit a claim within 30 days (most policies require this)
• Keep receipts for all temporary repairs and living expenses

Some insurers require you to use approved contractors for repairs. Ask ahead of time which ones are on their list.

Don’t Wait Until a Quake Is Imminent

Most policies have a 14- to 30-day waiting period after purchase before coverage begins. If you hear about an impending seismic event or see increased earthquake activity in the news, it’s too late to buy coverage. Proactive planning is essential.

Consider Renters Earthquake Insurance

If you rent, your landlord’s insurance won’t cover your belongings. Renters earthquake insurance is inexpensive—often $100–$250 per year—and covers personal property and additional living expenses if you’re displaced. It’s one of the most cost-effective protections you can buy.

Tools and Resources

U.S. Geological Survey (USGS) – Earthquake Hazards Program

Website: https://www.usgs.gov/natural-hazards/earthquake-hazards

Use the interactive hazard map to view your area’s seismic risk. The site also provides historical earthquake data, real-time alerts, and educational materials on seismic safety.

Arizona Geological Survey (AZGS)

Website: https://azgs.arizona.edu

Provides detailed geological reports, fault maps of central Arizona, and downloadable guides on home retrofitting. Their “Earthquake Preparedness for Arizona Homeowners” PDF is a must-read.

Arizona Department of Insurance and Financial Institutions (DIFI)

Website: https://www.azdifi.gov

Check insurer complaint ratios, verify license status, and file complaints if needed. DIFI also maintains a list of approved earthquake insurance providers in the state.

HomeAdvisor or Angi – Find Licensed Contractors

Website: https://www.homeadvisor.com

Search for local contractors specializing in foundation bolting, shear wall installation, and seismic retrofitting. Filter by reviews, licenses, and insurance.

Know Your Home’s Replacement Cost

Use the Insurance Information Institute’s Home Replacement Cost Calculator (https://www.iii.org/article/home-replacement-cost-calculator) to estimate your home’s rebuild value. Input your ZIP code, square footage, construction type, and finishes. This number determines your coverage limit.

Personal Property Inventory Apps

Apps like Encircle, Sortly, and HomeZada allow you to catalog your belongings with photos, purchase dates, and values. Many integrate directly with insurance claims portals.

Local Building Departments

Contact your city’s building and safety division (e.g., City of Phoenix Building Department) to request a copy of your home’s original construction permit. This reveals the year built, structural type, and any past inspections.

Real Examples

Example 1: The Smith Family – Phoenix, 2021

The Smiths purchased a 1982 ranch-style home in North Phoenix for $380,000. They had standard homeowners insurance but no earthquake coverage. In January 2021, a magnitude 4.7 quake centered near the Salt River caused a 3-inch crack in their foundation and shifted their chimney. Repairs were estimated at $48,000.

Because they had no earthquake insurance, they paid out of pocket. The family had to take a second mortgage to cover costs. They later purchased earthquake insurance with a 10% deductible ($38,000) from State Farm for $650/year. The retrofits they added—foundation bolting and water heater strapping—saved them 12% on their premium.

Example 2: Maria Rodriguez – Tempe Renter, 2022

Maria, a graduate student, rented a one-bedroom apartment in Tempe. She paid $180/year for renters earthquake insurance through Allstate. In March 2022, a minor tremor caused her refrigerator to tip over, damaging the floor and destroying her laptop and TV. Her policy covered $3,200 in personal property replacement and $1,500 in temporary housing while repairs were made.

She later told friends, “I spent $180 a year to avoid a $5,000 disaster. It was the best investment I made in Arizona.”

Example 3: The Hendersons – Glendale, 2023

The Hendersons owned a $750,000 custom home built in 2010. They had a 15% deductible earthquake policy with Travelers ($3,500/year). In October 2023, a quake measuring 5.1 near the Gila River caused $110,000 in structural damage. Their deductible was $112,500—higher than the damage.

They were disappointed but learned a key lesson: if your home’s value is high and your deductible exceeds the expected repair cost, consider lowering the deductible or increasing your coverage limit. They adjusted their policy the following year to a 10% deductible ($75,000) and added $50,000 in coverage for landscaping and pool repairs.

Example 4: The Wilsons – Surprise, 2020

The Wilsons ignored earthquake insurance for years. After a minor quake in 2020, they learned their home’s foundation had sustained hidden damage that only became apparent after heavy rains. Repairs cost $62,000. They had no coverage.

In 2021, they purchased a policy with a 10% deductible and completed a $4,500 retrofit. Their premium dropped to $850/year. They now keep a binder with photos, receipts, and policy documents in their emergency kit.

FAQs

Is earthquake insurance required in Phoenix?

No, earthquake insurance is not legally required in Phoenix or anywhere in Arizona. However, if you have a mortgage, your lender may require it if your home is located in a high-risk zone—but this is rare in central Arizona. Most lenders do not mandate it.

How much does earthquake insurance cost in Phoenix?

Annual premiums range from $300 to $1,200, depending on your home’s value, deductible, construction type, and location. Renters policies cost $100–$250/year.

What’s the average deductible for earthquake insurance in Arizona?

Most policies have deductibles of 10–20% of your dwelling coverage. For example, a $400,000 home with a 15% deductible means you pay the first $60,000 of damage.

Does homeowners insurance cover earthquake damage in Arizona?

No. Standard homeowners policies in Arizona explicitly exclude earthquake damage. You must purchase a separate endorsement or standalone policy.

Can I get earthquake insurance if my home is over 50 years old?

Yes, but you may need to complete a structural inspection and make retrofits before coverage is approved. Some insurers may decline coverage if the home has significant structural issues.

Does earthquake insurance cover damage to my pool or landscaping?

It depends on the policy. Some providers offer limited coverage for pools, patios, and trees as an add-on. Always ask for written confirmation.

How long does it take for earthquake insurance to become active?

Most policies have a waiting period of 14 to 30 days after purchase. Never wait until an earthquake is predicted to buy coverage.

Can I cancel my earthquake insurance after a few years?

Yes, but you may forfeit any premium discounts or retrofits that reduced your rate. Also, if you cancel and later want to reapply, you may face higher premiums or a new inspection requirement.

Do I need earthquake insurance if I live in a newer home?

Even newer homes can suffer damage in a significant quake. While modern construction is more resilient, it’s not earthquake-proof. Insurance protects you from unpredictable, high-cost repairs.

What happens if I don’t have earthquake insurance and my home is damaged?

You’ll be responsible for all repair costs. If the damage is severe, you may need to take out a loan, sell your home, or move out. Government disaster aid is rarely available for earthquakes in Arizona and is typically limited to declared federal disasters—which are rare in the state.

Conclusion

Getting earthquake insurance in Phoenix is not a matter of if, but when. While major earthquakes are infrequent, the consequences of being unprepared can be financially devastating. The cost of a policy is modest compared to the potential loss of your home, belongings, and peace of mind. With careful planning, research, and proactive measures like seismic retrofits, you can secure comprehensive protection at a reasonable price.

This guide has walked you through every critical step—from understanding coverage and assessing your risk to comparing providers, documenting your assets, and navigating claims. You now know that earthquake insurance isn’t just for coastal states; it’s a smart, practical investment for any Phoenix homeowner or renter.

Don’t wait for the ground to shake before you act. Review your current policy today. Contact at least two insurers for quotes. Consider a retrofit. Document your belongings. Make the decision now to protect what matters most.

In a city built on desert soil and rising temperatures, the one thing you can’t control is the earth beneath your feet. But you can control whether you’re ready when it moves. Choose protection. Choose preparedness. Choose peace of mind.