If you live in San Francisco, you're living on borrowed time—geologically speaking. The city sits wedged between two of California's most dangerous fault lines: the San Andreas Fault to the west and the Hayward Fault running through the East Bay. Scientists give the Bay Area a 72% chance of experiencing a magnitude-6.7 or greater earthquake by 2043. That's not a question of if, but when.
Here's what catches most San Francisco homeowners off guard: your standard homeowners insurance doesn't cover earthquake damage. Not a crack in your foundation, not a collapsed chimney, not your shattered belongings. If the Big One hits and your home sustains $200,000 in damage, you're paying out of pocket—unless you have earthquake insurance.
This guide will walk you through everything you need to know about earthquake insurance in San Francisco, from understanding your specific risks to deciding whether the coverage is worth the cost for your situation.
Why San Francisco's Earthquake Risk Is Unique
San Francisco doesn't just have earthquake risk—it has some of the highest seismic risk in the entire country. The city is essentially caught in a tectonic sandwich. The San Andreas Fault, which caused the devastating 1906 earthquake that destroyed 80% of San Francisco, runs along the Peninsula just miles from downtown. Meanwhile, the Hayward Fault slices through densely populated East Bay communities, putting 2.4 million people directly in harm's way.
The Hayward Fault is actually the Bay Area's most dangerous threat. It has a 33% probability of producing a major earthquake within the next 30 years—higher than any other fault in the region. Scientists call it "tectonic time bomb" because major quakes occur there roughly every 140 years, and it's been 155 years since the last big one in 1868.
The 1989 Loma Prieta earthquake serves as a recent reminder. That 6.9-magnitude quake killed 63 people, injured nearly 4,000, and caused $6 billion in damage (equivalent to $14 billion today). And here's the thing: Loma Prieta wasn't even the "Big One" scientists expect. It struck 60 miles south of San Francisco, not directly on either of the major faults threatening the city.
Adding to the risk, many San Francisco neighborhoods are built on fill—loose soil and debris dumped into the Bay to create buildable land. The Marina District, which suffered catastrophic damage in 1989, sits entirely on fill. During an earthquake, these soils can liquify, causing buildings to sink, tilt, or collapse. That's why where you live in San Francisco matters as much as whether you live there.
The Soft-Story Building Problem
If you live in a wood-frame apartment building built before 1978 with parking or retail space on the ground floor, you need to pay attention. These are called "soft-story" buildings, and they're earthquake death traps.
The problem is simple physics. The first floor has large openings for garage doors or storefronts, making it structurally weak compared to the residential floors above. During an earthquake, that weak first story can collapse like a house of cards, pancaking the upper floors. This is exactly what happened to several buildings in San Francisco's Marina District during Loma Prieta.
San Francisco recognized this danger and passed a Mandatory Soft-Story Retrofit Ordinance in 2013. The law requires owners of buildings with five or more residential units built before 1978 to seismically retrofit them. As of 2021, all compliance deadlines have passed, but the program remains active. If you're buying or renting in an older building, ask whether it's been retrofitted. If you own one of these buildings, retrofitting isn't just legally required—it could be the difference between a repairable building and a total loss.
For insurance purposes, retrofitted buildings often qualify for lower deductibles and better rates. Some buildings that haven't been retrofitted can only get earthquake coverage with a minimum 15% deductible, regardless of the building's value.
What Earthquake Insurance Actually Covers (and Doesn't)
Let's clear up the biggest misconception first: your regular homeowners insurance doesn't cover earthquake damage. None of it. Cracked foundation? Not covered. Collapsed chimney? Not covered. Broken windows and ruined furniture? Not covered. The only earthquake-related damage your homeowners policy covers is fire—if an earthquake causes a fire that damages your home, that's covered under your standard policy's fire protection.
To get earthquake protection, you need a separate earthquake insurance policy. In California, most people get this through the California Earthquake Authority (CEA), a publicly managed, not-for-profit organization that provides about two-thirds of residential earthquake policies in the state. You can't buy directly from the CEA—you purchase through the same insurance company that carries your homeowners policy, and they offer it as a CEA policy.
A typical CEA policy covers your dwelling (the structure of your home), personal property (your belongings), and additional living expenses if you need to live elsewhere during repairs. Every policy includes $1,500 for emergency repairs with no deductible—things like temporary supports or tarps to prevent further damage. You also get $10,000 in building code upgrade coverage, which helps pay for mandatory improvements required when you repair earthquake damage (higher limits are available).
But earthquake policies have significant exclusions. They don't cover landscaping, swimming pools, patios, or detached structures like sheds. They don't cover your cars (that's through auto insurance). They don't cover flood damage, tsunami damage, or sewer backup—even if an earthquake causes it. And they don't cover land damage like sinkholes.
Starting in 2025, CEA policies include a new benefit: a $500 sub-limit for breakables (dishes, glassware, artwork) at no extra cost. Previously, you had to pay extra for this coverage.
The Cost Question: What You'll Actually Pay
Earthquake insurance in San Francisco isn't cheap, but the cost varies dramatically based on your specific situation. For a median-priced San Francisco home (around $1.3 million), you're looking at roughly $2,000 to $6,000 per year. Yes, that's a wide range—and there's a reason for it.
Your premium depends on several factors. Location matters enormously—a home right on top of a fault line costs more to insure than one farther away. Age and construction type make a difference: older homes and wood-frame buildings cost more than newer, well-built structures. Your deductible choice is huge: CEA offers deductibles of 10%, 15%, 20%, and 25% of your home's value. Choose a 10% deductible and you'll pay higher premiums; choose 25% and your premiums drop significantly.
Here's where it gets tricky: if your home was built before 1980 on a raised foundation and hasn't been seismically retrofitted, or if it's worth more than $1 million, you can't get the 10% deductible option. Your minimum deductible is 15%. For a $1.5 million home, a 15% deductible means you're paying the first $225,000 of damage out of pocket.
And costs are going up. The CEA implemented a 6.8% rate increase effective January 1, 2025, for all new and renewal policies. On a $4,000 annual premium, that's an extra $272 per year. It's a reminder that insurance companies are increasingly concerned about California's earthquake risk.
The big question everyone asks: is it worth it? There's no universal answer. If you have a $1.5 million home and would struggle to come up with $300,000 for repairs, paying $4,000 a year for protection makes sense. If you have substantial savings and could self-insure, you might reasonably skip it. Just remember: the average California homeowner who doesn't have earthquake insurance will face catastrophic financial consequences if a major quake hits.
How to Get Earthquake Insurance in San Francisco
Getting earthquake insurance is straightforward. Start by contacting the insurance company that provides your homeowners policy. By California law, they must offer you earthquake insurance at least once every two years. Most will offer you a CEA policy, though some larger insurers offer their own proprietary earthquake policies.
You can use the CEA's online premium calculator to get an estimate before talking to an agent. You'll need basic information: your address, home's age, construction type, and estimated replacement cost. The calculator will show you premiums for different deductible levels, helping you balance cost against coverage.
When choosing coverage, pay attention to these key decisions: your deductible percentage (this is your biggest cost lever), your personal property coverage limit (starting at $5,000, up to $25,000), and whether you want optional coverages like additional breakables protection or higher building code upgrade limits. Don't just pick the cheapest option—think about what you could actually afford to pay out of pocket if an earthquake strikes tomorrow.
If you're a renter, don't assume earthquake insurance isn't for you. The CEA offers earthquake coverage for renters that protects your personal belongings and covers additional living expenses. It's significantly cheaper than homeowners coverage—often just a few hundred dollars a year.
Finally, don't wait. After a major earthquake, there's typically a moratorium on new earthquake insurance policies—insurers won't sell new coverage immediately after a big quake. If the Hayward Fault ruptures tomorrow, you can't buy coverage the next day. The time to get earthquake insurance is before you need it.
