If you live in Long Beach, you're literally sitting on top of one of California's most dangerous earthquake faults. The Newport-Inglewood fault runs right through the city, and seismologists say it could unleash a magnitude 7.3 or 7.4 earthquake. To put that in perspective, that's strong enough to level buildings and cause catastrophic damage across the entire Los Angeles basin.
Here's the kicker: your regular homeowners insurance won't cover a penny of earthquake damage. And yet, fewer than 12% of California homeowners actually have earthquake coverage. If you're part of the 88% without it, you could be on the hook for hundreds of thousands of dollars in repairs after the next big one hits.
Let's talk about why Long Beach is particularly vulnerable, what happened the last time a major quake struck the area, and how earthquake insurance actually works in California.
The 1933 Earthquake That Changed Everything
On March 10, 1933, at 5:54 PM, a magnitude 6.4 earthquake tore through Long Beach. The timing was fortunate—schools had just let out. If the quake had struck an hour earlier, thousands of children would have been crushed in collapsing school buildings. As it was, 120 people died and over 70 of those deaths occurred in Long Beach alone.
The damage was staggering—$40 to $50 million in 1933 dollars, which translates to nearly a billion dollars today. Unreinforced masonry buildings crumbled throughout the city. The disaster was so severe that California immediately passed the Field Act and Riley Act, establishing the first comprehensive earthquake safety standards for buildings in the United States. Every modern building code in earthquake-prone areas traces its roots back to what Long Beach learned that day.
But here's what keeps seismologists up at night: the 1933 earthquake was only a 6.4. The Newport-Inglewood fault is capable of producing a 7.3 or 7.4. That might not sound like much of a difference, but the earthquake magnitude scale is logarithmic. A 7.4 quake releases about 32 times more energy than a 6.4. The next big one could be dramatically worse.
Long Beach's Unique Earthquake Risks
Long Beach doesn't just have one earthquake problem—it has several. The city sits on top of the Newport-Inglewood fault, which cuts through over 60 kilometers of densely populated metropolitan Los Angeles. This fault system poses one of the greatest deterministic seismic hazards in the entire United States.
Then there's the oil field subsidence issue. Throughout the mid-20th century, oil extraction from the Wilmington Oil Field caused some of the most extreme land subsidence ever recorded—up to 29 feet in certain areas by the 1960s. When you pump oil and water out of underground reservoirs, the ground above literally sinks. This created concerns about structural damage, increased flood risk, and potential effects on fault stability.
The good news is that water injection programs successfully halted and even partially reversed the subsidence. The bad news is that Long Beach's geology remains complex and vulnerable. Recent studies have identified new active earthquake faults in the Long Beach and Seal Beach areas that weren't previously known, adding to the seismic risk profile.
The City of Long Beach takes this threat seriously. In 2024, the city held multiple community outreach meetings about earthquake preparedness and launched a seismic program focused on identifying and retrofitting vulnerable buildings, particularly those with soft, weak, or open front (SWOF) characteristics—think apartment buildings with open parking garages on the ground floor.
How Earthquake Insurance Works in California
First, let's clear up a common misconception: your homeowners insurance does not cover earthquake damage. It covers fire damage caused by an earthquake, but not the structural damage from the shaking itself. If an earthquake cracks your foundation, collapses your chimney, or destroys your home entirely, you're paying for repairs out of pocket unless you have a separate earthquake policy.
California law requires that your homeowners insurance company offer you earthquake coverage. They can't force you to buy it, but they have to make the offer. Most policies in California come from the California Earthquake Authority (CEA), a publicly managed, privately funded organization created after the 1994 Northridge earthquake when many insurers fled the state.
Here's how CEA policies typically work. You'll pay an annual premium that varies based on your location, your home's age and construction type, and the coverage limits you choose. Premiums generally range from $800 to $5,000 or more per year. That might sound expensive, but remember—you're protecting against a catastrophic loss that could bankrupt you.
The deductibles are what surprise most people. While your homeowners insurance might have a $1,000 or $2,500 deductible, earthquake insurance deductibles typically range from 10% to 25% of your coverage amount. If your home is insured for $500,000 and you choose a 15% deductible, you're responsible for the first $75,000 in damage. That's substantial, but it protects you from total financial ruin in a major earthquake.
CEA policies cover your dwelling, personal belongings (usually up to $5,000), and additional living expenses if your home becomes uninhabitable. Some policies also offer building code upgrade coverage, which pays for bringing your home up to current building standards during repairs—crucial for older Long Beach homes built before modern seismic codes.
Is Earthquake Insurance Worth It in Long Beach?
This is the million-dollar question—sometimes literally. The answer depends on your financial situation and risk tolerance. Can you afford to rebuild your home entirely out of pocket? Most Long Beach homeowners can't. The median home value in Long Beach exceeds $700,000. Even with a high deductible, earthquake insurance means the difference between recovering from a disaster and losing everything.
Consider this: only 11.4% of California homeowners currently have earthquake insurance. That means nearly 9 out of 10 households are gambling that they can either afford the loss or that the big one won't happen on their watch. Given that the Newport-Inglewood fault is overdue for a major event based on historical patterns, that's a risky bet.
There are ways to reduce your premium. Retrofitting your home with seismic upgrades—like bolting your house to its foundation or reinforcing cripple walls—can lower your rates. Choosing a higher deductible also reduces your annual cost. And if you're buying a home in Long Beach, getting earthquake insurance should be part of your closing checklist, not an afterthought.
Getting Started with Earthquake Coverage
Start by contacting your current homeowners insurance company. Because California law requires them to offer earthquake coverage, they can connect you with a CEA policy or their own earthquake insurance product. Get quotes with different deductible levels to see what fits your budget.
Ask about retrofit discounts. If your home hasn't been seismically retrofitted, consider having an evaluation done. The upfront cost of bolting your house to its foundation and bracing your cripple walls typically runs $3,000 to $7,000, but it can save you money on premiums year after year while making your home genuinely safer.
Don't wait for earthquake swarms or news coverage of seismic activity. Insurance companies can and do restrict new earthquake policies immediately after earthquakes or when seismic activity increases in an area. The time to get coverage is now, when the ground is quiet.
Living in Long Beach means accepting that a major earthquake isn't a question of if, but when. The 1933 quake proved how devastating even a moderate earthquake can be. The next one will likely be stronger. Earthquake insurance won't prevent the shaking, but it can prevent financial devastation. That peace of mind is worth exploring, especially in a city sitting directly on top of one of California's most dangerous faults.
