Earthquake Insurance Cost Calculator

Earthquake coverage separate from standard property policies.

Property value

Rate per $1k

Deductible %

Coverage % of value

Annual premium

$37,500

Deductible amount

$2,250,000

Net coverage at total loss

$12,750,000

How the math works

Annual premium = (value/1000) × rate × coverage%. Deductible = value × ded%.

$15M/1000 × $2.50 × 100% = $37.5k/yr. Deductible $2.25M. Net coverage at total loss $12.75M.

How to Use

Enter property value.
Enter EQ zone rate per $1k.
Enter deductible %.
Enter coverage percentage.
Read annual premium.

Frequently Asked Questions

Deductible structure?

Typically 10-20% of property value. NOT percentage of loss — percentage of total insured value. On $10M building with 15% deductible, first $1.5M of loss is uninsured. Large, meaningful deductible.

Typical rates?

California high zones: $2-5/$1k value. Pacific NW: $1-3/$1k. New Madrid zone (Midwest): $0.50-2/$1k. Low-activity zones: $0.10-0.50/$1k. Coverage rare outside seismic zones.

Cost-benefit?

High-value properties in active zones: buy coverage. Lower-value or low-probability areas: consider self-insurance. Lender may require in high-risk zones. Catastrophic loss potential (total destruction) often drives purchase decision.

How does this affect my portfolio-level metrics?

Single-asset impact rarely matters in isolation for a portfolio of 20+ assets, but systematic patterns do. If the same issue shows up across 10% of your portfolio, the aggregate impact is meaningful. Track this metric at the portfolio level quarterly. Institutional operators aggregate these monthly into a KPI dashboard for investors and lenders.