If you own a home in Granada Hills, you're living in one of the San Fernando Valley's most desirable neighborhoods—tree-lined streets, good schools, and a real sense of community. But here's what you need to know: your home sits on some of the most seismically active ground in California. The 1994 Northridge earthquake didn't just shake Granada Hills—it fundamentally changed it. And when it comes to protecting your home, understanding these risks isn't optional.
Home insurance in Granada Hills isn't just about covering your mortgage lender's requirements. It's about preparing for the specific threats that come with living in this beautiful but geologically active part of Los Angeles County. Let's break down what you actually need to know.
Why Granada Hills Is Different: The Earthquake Reality
Granada Hills has experienced 5,068 earthquakes since 1931. That's not a typo. And here's the number that should really get your attention: there's a 96.86% chance of a major earthquake within 50 kilometers of Granada Hills in the next 50 years. If you plan to own your home for more than a few years, you will almost certainly experience significant ground shaking.
The 1994 Northridge earthquake—a 6.7 magnitude event—caused devastating damage throughout Granada Hills. On Balboa Boulevard, a ruptured gas main created a massive explosion that launched a 300-pound chunk of concrete through someone's roof. When a stalled car ignited the broken gas line, flames shot 100 feet into the air and burned five homes to the ground, leaving a ten-foot crater in the middle of the street. The damage was so severe that President Bill Clinton visited two days later.
Here's something most people don't know: the Granada Hills are still rising. GPS measurements show the hills have lifted about six inches since 1994, and the movement hasn't stopped. This ongoing tectonic activity is why earthquake insurance isn't just a good idea—it's essential.
What Standard Home Insurance Actually Covers (and What It Doesn't)
Your standard homeowners insurance policy in Granada Hills covers the typical risks: fire, theft, vandalism, wind damage, and liability if someone gets hurt on your property. In 2025, Los Angeles County homeowners pay an average of $1,583 to $1,604 per year for this coverage, based on $300,000 in dwelling coverage with a $1,000 deductible.
But here's the critical gap: earthquake damage is not covered. Not even a little bit. If an earthquake cracks your foundation, collapses your chimney, or destroys your home entirely, your standard policy pays nothing. This surprises a shocking number of homeowners who discover this exclusion only after disaster strikes.
There is one important exception: California law requires that homeowners insurance must cover fire damage caused by or following an earthquake. So if earthquake shaking ruptures a gas line and your home burns down—like what happened to those five homes on Balboa Boulevard in 1994—your standard policy will cover the fire damage even without earthquake insurance. But the gas line damage itself, foundation cracks, and all other earthquake-related destruction? Not covered.
Understanding Earthquake Insurance: What It Costs and Why You Need It
California law requires your insurance company to offer you earthquake insurance every other year. You'll receive these offers whether you want them or not—and in Granada Hills, you should seriously consider accepting.
Earthquake insurance works differently than standard coverage. The deductible is typically a percentage rather than a flat dollar amount—usually ranging from 2% to 20% of your home's replacement value. So if your home is worth $600,000 and you have a 10% deductible, you'll pay the first $60,000 of earthquake damage out of pocket. That's steep, but it's designed to cover catastrophic losses, not minor repairs.
The cost varies based on your home's age, construction type, and proximity to fault lines. Given Granada Hills' location and the 1994 earthquake history, expect premiums to be higher than the state average. But consider this: the Northridge earthquake caused $13 to $50 billion in total damage. Without earthquake coverage, you're betting your entire home's value that it won't happen again in your ownership period—and the odds say that's a losing bet.
The Rising Cost of Home Insurance in 2025 and Beyond
If you think your insurance bill is high now, brace yourself. Homeowners insurance premiums in California are projected to rise by 21% throughout 2025, bringing the average annual premium to $2,930 compared to $2,424 in 2024. State Farm received preliminary approval to increase rates by an average of 22% following the January 2025 wildfires.
Here's what's driving these increases: California regulators now allow insurance companies to factor climate change data into their pricing. While Granada Hills has a relatively low wildfire risk compared to hillside communities, you're still in Los Angeles County, where the January 2025 Palisades and Eaton fires generated $33.9 billion in insured losses. Insurance companies don't assess risk street by street—they look at entire regions. Being in LA County means you're sharing some of that wildfire risk premium, even if your immediate neighborhood is safer.
Some homeowners in high-risk areas are finding it difficult to get coverage at all, forcing them into the California FAIR Plan—the state's insurer of last resort. Granada Hills residents generally haven't faced this problem yet, but it's worth monitoring as the insurance market continues to tighten.
How to Get the Right Coverage for Your Granada Hills Home
Start by getting quotes from multiple insurers. Rates can vary significantly, and what one company charges for earthquake coverage might be dramatically different from another. Don't just compare the premium—look at the deductible percentages, coverage limits, and what's actually included.
Consider whether you can afford to rebuild your home out of pocket if an earthquake destroys it. If the answer is no—and for most homeowners, it is—then earthquake insurance isn't optional. Choose the highest deductible you can afford to pay in an emergency, which will lower your premium while still providing catastrophic protection.
Document your home and belongings with photos and videos. Store this documentation somewhere off-site—like cloud storage—so you have it if you need to file a claim. Update your coverage limits every few years to account for rising construction costs and property values.
Living in Granada Hills means enjoying one of LA's best neighborhoods while accepting the geological reality underneath it. The 1994 earthquake showed us what's possible—and the statistics say it will happen again. The question isn't whether you can afford earthquake insurance. It's whether you can afford to go without it.
