If you live along the South Carolina coast, you’re probably well-versed in the usual suspects when it comes to property risk: hurricanes, flooding, and the occasional tropical storm. But earthquakes? That one tends to catch people off guard, and it’s exactly the kind of gap in coverage that can lead to some very unpleasant surprises.
The team at C.T. Lowndes has been helping coastal SC homeowners protect what matters most since 1850, and we’re here to help you sort through whether earthquake coverage belongs in your insurance plan. Get in touch to see if earthquake insurance is right for your home.
1. South Carolina Has More Seismic Activity Than You Might Think
Most people associate earthquakes with California, and sure, California sees a significant share of seismic events in the U.S. But South Carolina has its own history with earthquakes that’s worth taking seriously. The Charleston earthquake of 1886 was one of the most destructive earthquakes in U.S. history, and the region still sits near active fault lines today.
The U.S. Geological Survey uses seismic hazard maps to assess risk across the country, and parts of South Carolina, including the Lowcountry, fall into moderate-risk zones. That doesn’t mean a major earthquake is imminent, but it does mean the risk is real enough to warrant a conversation.
2. Your Homeowners Insurance Policy Does Not Cover Earthquakes
This is the part that surprises most people: a standard homeowners insurance policy does not cover earthquake damage. Earthquakes are specifically excluded from most policies, which means if a quake causes structural damage to your home or damages your personal property, your homeowners policy won’t pay toward repairs.
The same is true for renters insurance. If you rent and an earthquake damages your belongings, your standard policy won’t cover that either. Earthquake coverage has to be added as a separate policy or a separate coverage endorsement.
3. Earthquake Insurance Covers More Than Just Your Home’s Structure
Earthquake insurance policies typically include several coverages that work together to make you whole again after a seismic event. Understanding what each part does helps you figure out whether the coverage makes sense for your situation.
Dwelling coverage is the core of most earthquake insurance policies, and it covers the physical structure of your home if it’s damaged by an earthquake. This includes the walls, roof, and foundation, and it applies whether your home sits on a slab foundation or a raised foundation.
If your home has a masonry or brick veneer exterior, that’s worth flagging upfront. Some carriers exclude masonry exteriors from coverage entirely, while others will cover them for an additional premium.
Some policies also include building code upgrade coverage, which is worth paying attention to, because if your home is damaged, code upgrade coverage pays the additional cost to rebuild it up to current building codes rather than just restoring it to its previous state.
Personal property coverage protects the contents inside your home, including furniture, appliances, electronics, and other personal belongings that get damaged during an earthquake.
Additional living expenses coverage is another important piece. If earthquake damage forces you out of your home while repairs are being made, this part of the policy helps cover your temporary living expenses like hotel stays or rental costs.
4. There Are Important Gaps In What Earthquake Insurance Covers
It helps to know where the boundaries are. Most earthquake insurance policies do not cover flood damage, even if a quake triggers secondary flooding or a tsunami. For flood-related losses, you would need a separate flood insurance policy, often through the National Flood Insurance Program.
Fire damage caused by a post-earthquake fire is typically covered under your homeowners policy rather than your earthquake policy. If a gas line ruptures and causes a fire after a quake, most homeowners policies will cover that fire damage even if the underlying cause was a quake.
Earthquake insurance also will not cover damage to your vehicles. That falls under a separate auto insurance policy.
5. Earthquake Insurance Has A Separate Deductible That Works Differently
The deductible is one of the most important things to understand before you buy earthquake insurance, and it works similarly to a separate wind/hurricane deductible.
Earthquake insurance uses a percentage-based deductible. That percentage is calculated against your home’s insured value, and it typically ranges from 5% to 25% depending on your policy.
Here’s a quick example to put that in perspective. If your home is insured for $400,000 and your deductible is 10%, you’d be responsible for the first $40,000 in repairs before your insurance kicks in.
That’s a meaningful number, so it’s worth fully understanding before choosing a policy. The good news is that you usually have some flexibility in choosing your deductible.
Opting for a higher deductible will lower your annual premium, while a lower deductible means you pay more upfront each year but have less out-of-pocket exposure if something happens. It really comes down to how much financial risk you’re comfortable carrying, which is a conversation worth having with your agent at C.T. Lowndes.
6. Several Factors Influence What Your Earthquake Insurance Will Cost
Several factors influence what you’ll pay to buy earthquake insurance, and they’re worth understanding before you shop around. Your home’s location relative to known fault lines plays a significant role, as does your soil type, since certain soils amplify shaking more than others.
The age and construction of your home also matter. A home that has been properly retrofitted to current seismic standards will generally cost less to insure than one that hasn’t. The type of foundation your home sits on is another variable, as a raised foundation often performs differently in a quake compared to a slab foundation.
7. Earthquake Coverage Works Alongside Your Other Policies, Not Inside Them
Earthquake coverage can either be added to your existing homeowners policy as an endorsement or purchased as a separate policy from a private carrier. Which option makes the most sense depends on your current insurer, the coverage limits you need, and how the pricing compares between the two paths.
It’s worth noting that earthquake coverage and flood insurance serve different purposes and protect against different types of events. If you’re on the coast, you likely already have flood insurance through the National Flood Insurance Program or a private carrier. Earthquake insurance is a separate layer of protection that addresses a separate risk.
Your Specific Situation Determines Whether Earthquake Insurance Is Worth It
Whether you should buy earthquake insurance comes down to your specific situation. If you own a home in coastal South Carolina, especially in the Charleston area, the seismic history of the region makes it worth considering. If your mortgage lender requires it, the question answers itself.
The team at C.T. Lowndes works with homeowners across coastal South Carolina every day to make sure their coverage actually fits their lives. If you’re wondering whether earthquake insurance makes sense for your home, reach out to us and we’ll help you think it through.
Homeowners Also Ask These Questions About Earthquake Insurance
Does homeowners insurance cover earthquake damage?
No, a standard homeowners insurance policy does not cover earthquake damage. Earthquakes are specifically excluded from most homeowners policies, which means damage to your home’s structure or your personal property caused by earthquakes would not be covered unless you purchase a separate earthquake insurance policy or endorsement.
How much does earthquake insurance cost in South Carolina?
The cost of earthquake insurance in South Carolina varies based on several factors, including your home’s location, age, exterior material, foundation type, soil type, and how close you are to known fault lines. The percentage-based deductible, which can range from 5% to 25% of your insured home value, is an important cost consideration alongside the annual premium.
Is South Carolina at risk for earthquakes?
Yes, South Carolina has a real and documented seismic history. The 1886 Charleston earthquake was one of the largest and most destructive earthquakes ever recorded in the eastern United States. The Lowcountry region still sits near active fault lines, and the U.S. Geological Survey’s seismic hazard maps show parts of South Carolina carry moderate earthquake risk.
What does earthquake insurance cover?
Earthquake insurance typically covers dwelling coverage for structural damage to your home, personal property coverage for damaged belongings, additional living expenses if you are displaced during repairs, and sometimes building code upgrade coverage to bring your home up to current codes during the rebuild process. It does not cover flood damage, even if flooding is triggered by an earthquake.
Do I need both flood insurance and earthquake insurance in South Carolina?
They cover completely different risks, so if you want to have coverage for both, yes, you would need both policies. Flood insurance, often provided through the National Flood Insurance Program, covers damage caused by flooding, while earthquake insurance covers damage caused by seismic activity. Neither policy overlaps with the other, and neither is included in a standard homeowners insurance policy.
