Here's something that would have sounded absurd twenty years ago: Oklahoma now needs earthquake insurance more than California in some zip codes. Between 2014 and 2017, Oklahoma actually experienced more magnitude 3+ earthquakes than California. We're talking about an 800-fold increase in seismic activity since 2011. If you're a homeowner in Oklahoma City or anywhere in central Oklahoma, this isn't some distant geological curiosity—it's a real risk that could cost you tens of thousands of dollars if you're not properly insured.
The culprit? It's not fracking itself, despite what you might have heard. It's the wastewater disposal wells that inject billions of barrels of fluid deep underground as a byproduct of oil and gas production. The good news is that Oklahoma has taken aggressive action to reduce the risk. The challenging news is that your standard homeowners policy won't cover earthquake damage, and the specialized coverage comes with some sticker-shock-inducing deductibles.
Understanding Oklahoma's Induced Earthquake Problem
Let's clear up the fracking confusion first. While hydraulic fracturing (fracking) gets most of the headlines, only about 2% of Oklahoma's induced earthquakes are linked to the fracking process itself. The real issue is what happens after the oil and gas are extracted. The production process generates massive amounts of wastewater—we're talking 2.3 billion barrels per year in Oklahoma since 2011. That wastewater has to go somewhere, and the industry's solution has been to inject it deep underground through disposal wells.
Here's where it gets technical but important: Oklahoma's geology includes a layer of sedimentary rocks sitting on top of crystalline basement rocks. When injection wells pump wastewater into or near that basement layer, the fluid pressure can trigger movement along existing faults. The depth of injection matters enormously—wells that inject deeper into the Arbuckle formation, particularly into the basement rock layer, are much more likely to trigger significant earthquakes.
The numbers tell a dramatic story. Before 2009, Oklahoma averaged fewer than one magnitude 3+ earthquake per year. By 2015, that number had skyrocketed. The state has experienced four magnitude 5+ earthquakes, including the magnitude 5.8 Pawnee earthquake in 2016 and a magnitude 5.1 quake near Prague in February 2024. Even with recent mitigation efforts, Oklahoma and southern Kansas still experienced 74 magnitude 3+ earthquakes between 2020 and 2023.
What Earthquake Insurance Actually Covers (and Costs)
Your standard homeowners insurance policy specifically excludes earthquake damage. That foundation crack, those buckled floors, the chimney that toppled over—none of it is covered unless you have earthquake coverage. This coverage comes either as an endorsement to your existing homeowners policy or as a separate stand-alone policy.
The annual premium is actually pretty reasonable—typically $50 to $300 per year depending on your home's value, location, age, and construction type. For a home insured for $200,000, you're looking at around $250 annually. A $350,000 home might cost around $375 per year. That's less than a dollar a day for protection against potentially catastrophic damage.
But here's the catch that stops many homeowners: the deductible. Unlike your regular homeowners deductible (which might be $1,000 or $2,500), earthquake insurance deductibles are percentage-based—commonly 5% to 10% of your home's insured value. Let's do the math on that $200,000 home. With a 10% deductible, you're paying the first $20,000 of damage out of pocket. Even with a 5% deductible, you're on the hook for $10,000 before insurance kicks in.
This makes earthquake insurance a bit different from other coverages. It's not designed to handle minor damage—it's catastrophic coverage for major structural damage. If an earthquake cracks some drywall and breaks a few dishes, you're probably better off paying for repairs yourself. But if it damages your foundation, destroys your chimney, or makes your home uninhabitable, that's when earthquake coverage becomes invaluable.
The Current Risk: Better, But Not Gone
Oklahoma deserves credit for taking the induced seismicity problem seriously. Starting in 2015, Oklahoma and Kansas began requiring wells that inject into the lower Arbuckle Group to be backfilled with cement (plugged back) so they inject into shallower formations instead. The results have been remarkable. According to a November 2024 study, these regulatory efforts have reduced earthquake rates by approximately 75% compared to what they would have been without intervention.
Here's the thing, though: reduced risk isn't zero risk. That February 2024 magnitude 5.1 earthquake near Prague was a wake-up call that the danger hasn't disappeared. Even with reduced injection volumes and plugged wells, Oklahoma still experiences elevated seismic activity compared to its historical baseline. The mitigation strategies are working, but they haven't eliminated the underlying geological stresses that have built up from years of high-volume injection.
There's also the legal and financial fallout to consider. A class action lawsuit resulted in a settlement in 2024-2025 covering property owners who suffered earthquake damage between January 2019 and February 2024. The lawsuit alleged that certain oil companies were responsible for induced seismic activity through their wastewater injection operations. If you're buying property in Oklahoma, sellers in affected counties are now required to disclose prior earthquake damage or claims, which can affect property values and future insurance eligibility.
Should You Buy Earthquake Insurance?
This is ultimately a personal risk calculation, but here are some factors to consider. If you have a mortgage, check whether your lender requires earthquake coverage—some do in high-risk areas. If you're in central Oklahoma, particularly near Oklahoma City, Stillwater, or other areas with concentrated injection well activity, your risk is elevated. Older homes with unreinforced foundations are more vulnerable to earthquake damage than newer construction built to modern codes.
Think about your financial cushion. Could you afford $15,000 to $30,000 in unexpected repairs if a significant earthquake damaged your home? If that would be financially devastating, the $200-$300 annual premium starts to look like cheap peace of mind, even with the high deductible. Remember, you're not insuring against minor tremors—you're insuring against catastrophic structural damage that could cost more than $50,000 to repair.
Consider whether you're choosing replacement cost or actual cash value coverage. Replacement cost will rebuild your home at today's prices, while actual cash value factors in depreciation. For most homeowners, replacement cost is worth the slightly higher premium—you want your home fully restored, not compensated for what a damaged house is worth on the market.
Getting Started with Coverage
Start by contacting your current homeowners insurance company and asking about earthquake coverage options. Most major insurers operating in Oklahoma offer it as an endorsement. Get quotes with different deductible levels—sometimes opting for a 15% deductible instead of 10% can significantly reduce your premium, and you can decide what level of out-of-pocket expense you're comfortable with.
Ask specifically what's covered and what's not. Most policies cover your dwelling, other structures (like detached garages), and personal belongings. Some include additional living expenses if earthquake damage makes your home temporarily uninhabitable. Make sure you understand any exclusions—for example, some policies won't cover masonry veneer or certain types of foundation damage.
Oklahoma's induced earthquake situation is unique in American insurance. You're dealing with a relatively new, human-caused risk that regulatory actions are actively mitigating but haven't eliminated. The coverage is affordable, but the high deductibles mean it's really about protecting against worst-case scenarios. If you're a homeowner in central Oklahoma, particularly in areas with known injection well activity, having this conversation with your insurance agent is worth your time. Even if you decide the coverage isn't right for you, at least you'll have made an informed decision about a real risk to your most valuable asset.
