Most San Diego residents know California has earthquakes. What surprises people is learning that the Rose Canyon fault—capable of a magnitude 7.0 quake—runs right through the heart of downtown, cuts through San Diego Bay, and extends north through La Jolla along the coast. It's been 200 to 300 years since the last major earthquake on this fault, and seismologists estimate these large events occur every 700 to 2,000 years. Here's what you need to know about protecting your home with earthquake insurance in San Diego.
Understanding San Diego's Earthquake Risk
The Rose Canyon fault system is your biggest concern if you live in San Diego. Recent 2024 research published in the Bulletin of the Seismological Society of America found that this fault may be slipping toward the higher end of geologic estimates, at a rate of 2.4 millimeters per year. That might not sound like much, but over time it builds up enormous stress in the earth's crust.
What makes this particularly concerning is that the Rose Canyon fault may connect with the Newport-Inglewood fault to the north and the San Miguel-Vallecitos fault system. If these faults ruptured together, they could produce earthquakes as powerful as magnitude 7.3 to 7.4—strong enough to cause catastrophic damage across the entire San Diego region.
Beyond fault lines, San Diego has another earthquake hazard: liquefaction zones. These are areas where loose, water-saturated sediments can lose strength and essentially turn to liquid during strong shaking. If you're buying property in San Diego, sellers are required to disclose if the home sits in a mapped seismic hazard zone. Areas with shallow groundwater (less than 40 feet deep) and young, uncompacted soils are particularly vulnerable.
Why Your Homeowners Insurance Isn't Enough
Here's the thing most San Diego homeowners don't realize until it's too late: your standard homeowners insurance policy doesn't cover earthquake damage. Not the cracked foundation, not the collapsed chimney, not the broken water lines. The only earthquake-related coverage in a typical homeowners policy is fire damage caused by an earthquake—and that's it.
California law requires insurance companies to offer earthquake coverage to homeowners, but you have to actively purchase it as a separate policy. Most people get their earthquake insurance through the California Earthquake Authority (CEA), a publicly managed, privately funded organization that provides the majority of residential earthquake coverage in the state. You can only buy a CEA policy through the same insurance company that provides your homeowners insurance.
CEA Coverage Options and What They Mean for You
The CEA offers two main policy structures for homeowners. The traditional option bundles all coverages together under one deductible. The newer Homeowners Choice policy lets you select separate deductibles for your dwelling and personal property, or even purchase dwelling coverage alone if you want to keep costs down.
Dwelling coverage protects your house and attached structures like your garage. This is the foundation of any earthquake policy and can be purchased on its own. Personal property coverage protects your belongings, but there's an important change to know about: for policies written after August 1, 2023, the maximum personal property limit dropped from $200,000 to just $25,000. If you have valuable belongings, you'll need to plan accordingly.
Every CEA policy includes $10,000 in building code upgrade coverage, with options to purchase higher limits. This matters because after an earthquake, you might discover your home needs to be brought up to current building codes during repairs—and that can get expensive fast.
The deductible is where earthquake insurance differs dramatically from other policies. Your choices are 5%, 10%, 15%, 20%, or 25% of your home's value—not a flat dollar amount. For a $700,000 home with a 10% deductible, you'd pay the first $70,000 of damage out of pocket. That's substantial, but remember, earthquake insurance is really catastrophic loss protection. It's there for the scenario where your home is severely damaged or destroyed, not for minor cracks.
Important note: homes valued over $1 million or built before 1980 without verified seismic retrofitting now face a minimum 15% deductible. You can no longer choose the 5% or 10% options for these properties.
What Earthquake Insurance Actually Costs in San Diego
For a typical San Diego home, you're looking at roughly $2,100 to $2,300 per year for earthquake coverage. The general rule of thumb is about $3 per $1,000 of coverage, though your actual cost depends on several factors specific to your property.
Your premium is calculated based on your home's age, proximity to fault lines, soil type, foundation type, construction materials, and roof type. Older homes, brick or masonry construction, multi-story houses, and homes built on sandy soil all cost more to insure. If your property sits in a liquefaction zone, expect higher rates.
Here's some good news: if you have an older home that's been properly retrofitted—meaning it's been strengthened to better withstand earthquake forces—you could qualify for up to a 25% discount on your premium. That retrofit might involve bolting your house to its foundation, bracing your cripple walls, or reinforcing your structure in other ways. Not only does this make your home safer, but it saves you money on insurance.
One thing to be aware of: CEA raised its rates by an average of 6.8% at the beginning of 2024, and insurance costs in California continue to trend upward. When you're budgeting for homeownership in San Diego, factor in these earthquake insurance costs alongside your regular homeowners premium.
How to Get Started with Earthquake Coverage
Start by contacting the insurance company that provides your current homeowners policy. They're your gateway to CEA coverage and can walk you through your options. Use the CEA's online premium calculator to get a sense of costs before you commit—you'll need details about your home's age, construction type, and foundation.
If you're buying a home in San Diego, find out during the inspection process whether the property is in a seismic hazard zone or liquefaction area. Pull up the San Diego Seismic Safety Study maps to check your specific location. This information should be disclosed to you anyway, but it's worth verifying yourself.
Consider your financial situation carefully when choosing a deductible. A higher deductible lowers your premium, but could leave you struggling to cover repairs after a quake. Many financial advisors suggest keeping enough in savings to cover your earthquake deductible, just as you would for other insurance.
Living in San Diego means accepting a certain level of earthquake risk. The Rose Canyon fault isn't going away, and neither is the possibility of major ground shaking in our lifetimes. Earthquake insurance won't prevent damage to your home, but it can prevent a natural disaster from becoming a financial catastrophe. That peace of mind is worth considering, especially if you're invested in San Diego real estate for the long term.
