Earthquake Deductible Calculator

Earthquake deductibles are percentage-based and large. This calculator sizes exposure.

Replacement value

Deductible %

Expected frequency (yrs)

Partial loss %

Annual expected exposure

$45,000

Per-event deductible

$1,800,000

Expected loss per event

$3,000,000

How the math works

Per-event deductible = value × pct. Annual exposure = event deductible ÷ frequency.

High deductibles on EQ are structural rather than negotiable — they reflect underwriting economics. The real lever is catastrophe reserve planning. A 15% deductible on $12M is $1.8M of cash exposure — build that into portfolio catastrophe reserves, not just into stress scenarios.

How to Use

Enter property replacement value.
Enter deductible percentage.
Enter expected frequency (years).
Enter expected partial loss %.
Read annual expected deductible exposure.

Frequently Asked Questions

Typical deductibles?

California EQ: 10-25% of insured value (per occurrence). Oregon/Washington: 10-20%. Missouri/New Madrid: 5-15%. Japan mandatory: 5%. Flat-dollar deductibles rare — percentage is standard for EQ.

Per-occurrence vs aggregate?

Per-occurrence: full deductible on each EQ event. Aggregate: annual max. Per-occurrence more common. Risk: multiple events in year can stack deductibles. Aggregate structure rare and expensive in high-peril regions.

Mitigation?

Buy down deductible: 10% buy-down insurance available, expensive. Parametric cover: pays fixed amount on trigger (magnitude + distance) regardless of actual damage. Supplements primary EQ when deductible is punitive.

How do insurance carriers view this?

Insurance carriers underwrite per-peril and often stack deductibles — named storm, wind, hail, flood, and standard can all apply separately on a single event. Confirm with your broker which deductibles actually apply to your policy and stress-test liquidity against the highest applicable deductible. Endorsements and riders can modify base terms; read declarations carefully and keep a written summary on file for claim time.