Earthquake Insurance Rates Are Set to Increase in California

Only 10 percent of Golden State residents carry earthquake insurance, with many citing high premiums and deductibles as the reason they forego coverage.

An onlooker views newly ruptured ground after a 7.1 magnitude earthquake struck in the area on July 6, 2019. near Ridgecrest, Calif. The earthquake, which occurred July 5th, was the second large quake to hit the area in two days and the largest in Southern California in 20 years. Mario Tama/Getty Images

Californians will pay more for earthquake coverage in 2025, as the California Earthquake Authority—a not-for-profit organization funded by insurance companies and managed by the state—is raising rates by an average of 6.8 percent in January.

“[The earthquake authority] is committed to making earthquake insurance as available, reliable, and affordable as possible,” the organization said on its website. “While we work hard to keep rates affordable, state law requires our rates to be actuarially sound.”