California’s reputation as a hub of sunshine and innovation also comes with a less glamorous reality: earthquakes. Located along the infamous San Andreas Fault, the Golden State experiences regular tremors that remind residents of the looming threat of “the Big One.” Despite this, many homeowners overlook the financial risks posed by earthquakes, leaving them vulnerable to staggering repair costs. For the Wakefield family, however, one prudent decision to secure earthquake insurance proved life-saving when disaster struck. Their story highlights the importance of preparedness and serves as an urgent reminder of why earthquake insurance is worth considering.

The Wakefield Family’s Story

The Wakefield family—Mark, Susan, and their two children—lived in a suburban Los Angeles home nestled in an idyllic neighborhood. Their house, built in the 1980s, had weathered countless minor earthquakes with little more than rattling windows and swaying chandeliers. Over the years, these small quakes had lulled the family into a false sense of security. “We always assumed the house was sturdy enough,” said Mark Wakefield.
But as Susan began reading more about California’s seismic risks, the family’s perspective shifted. They learned that earthquakes of magnitudes 6.7 and higher—capable of causing catastrophic destruction—were not just possible but highly likely in their lifetime. Susan discovered the alarming statistic from the United States Geological Survey (USGS): California has a 99.7% chance of experiencing a major earthquake within the next 30 years. After consulting with their insurance agent, the Wakefields made what they later described as “the smartest investment we ever made”: purchasing earthquake insurance.
Their decision paid off in 2023, when a magnitude 7.2 earthquake shook Southern California. The quake wreaked havoc across their community, leaving a trail of collapsed walls, shattered windows, and fractured foundations. Homes throughout the neighborhood were severely damaged, and the Wakefields’ property was no exception. The family’s losses totaled nearly $200,000—an amount that far exceeded their savings.
Thanks to their earthquake insurance policy, nearly all their repair costs were covered. “Without it, we would have been ruined financially,” Susan said. “It saved our home—and our future.”

The Costs of Going Uninsured

Despite living in a state synonymous with earthquakes, the vast majority of Californians remain uninsured against them. According to the California Earthquake Authority (CEA), only 13% of California homes are protected by earthquake insurance, leaving millions exposed to the enormous financial burden of repairs.
The reasons for this low adoption rate often boil down to misconceptions and cost concerns:

• Many homeowners mistakenly believe that standard home insurance policies cover earthquakes. In reality, earthquake damage is explicitly excluded from most standard policies.
• High premiums and deductibles deter some homeowners from purchasing earthquake insurance. Premiums typically range from $800 to $2,000 annually, depending on factors like location, home value, and construction type. Deductibles, meanwhile, are higher than those in standard policies—typically ranging from 10% to 20% of the home’s insured value.

However, the financial risks of going uninsured far outweigh these costs:

• FEMA data reveals that the average repair cost for structural damage caused by an earthquake is $100,000 to $200,000—a devastating sum for most families to pay out of pocket.
• For the Wakefields, their annual premium of $1,200 was a small price to pay to avoid the financial ruin that would have come with a $200,000 repair bill.

What Does Earthquake Insurance Cover?

Earthquake insurance is designed to address the unique damages that earthquakes can cause—damages that are often excluded from standard homeowner’s policies. Key coverages typically include:

Structural Damage

Covers repairs to the main structure of your home, including the foundation, roof, and walls. For the Wakefields, this coverage alone saved them more than $150,000.

Personal Property

Reimburses the cost of damaged belongings, such as furniture, appliances, and electronics. The Wakefields’ policy allowed them to replace destroyed items like their television, couch, and kitchen appliances.

Additional Living Expenses (ALE)

Pays for temporary housing, meals, and other costs if your home becomes uninhabitable after a quake. The Wakefields were able to stay in a nearby rental home while their property was being repaired, easing the emotional and logistical burden of displacement.
While earthquake insurance deductibles are higher than those in traditional policies, this trade-off ensures coverage against catastrophic losses. Without it, the Wakefields would have had to deplete their savings, take on significant debt, or face years of financial recovery.

A Growing Need for Awareness

The Wakefields’ experience underscores the urgent need for greater awareness around earthquake insurance. Major earthquakes are unpredictable, but the risk is undeniable. Seismic experts warn that as climate change intensifies, natural disasters are likely to become more frequent and severe, increasing the need for proactive measures.

Sobering Statistics

• California ranks as the most earthquake-prone state in the U.S., with hundreds of fault lines spanning its geography.
• The USGS estimates that a magnitude 7.5 earthquake or larger could displace over 250,000 residents in Southern California alone.
• Despite these risks, the vast majority of California homeowners—nearly 87%—remain uninsured against earthquakes.

Tips for Homeowners

Preparing for earthquakes involves more than just securing insurance—it requires a combination of risk assessment, mitigation, and planning. Here are actionable steps homeowners can take to protect their families and properties:

• Evaluate Your Risk
  Use tools like the California Earthquake Authority’s risk estimator to determine your home’s vulnerability based on location, construction type, and proximity to fault lines.
• Retrofit Your Home
  Strengthening your home’s foundation through retrofitting can minimize damage during a quake. Some insurers even offer discounts for retrofitted homes.
• Understand Your Policy
  Work closely with your insurance agent to ensure your earthquake insurance policy aligns with your specific needs. Pay attention to coverage limits, deductibles, and exclusions.
• Create an Emergency Plan
  Develop a family emergency plan that includes evacuation routes, communication strategies, and a disaster kit with essentials like water, food, and first-aid supplies.

A Lesson in Preparedness

For the Wakefields, the decision to invest in earthquake insurance wasn’t just about protecting their property—it was about safeguarding their family’s future. Their story highlights a vital truth: while earthquakes are an unavoidable part of California life, their financial impact doesn’t have to be.
By taking proactive steps to secure coverage, evaluate risks, and retrofit their home, the Wakefields ensured they were prepared for the worst. In doing so, they set an example for other homeowners, reminding us all that preparation is the best defense against the unpredictable.
In a state where the “Big One” is always a possibility, earthquake insurance offers not just protection but peace of mind. The Wakefields’ experience stands as a powerful testament to the value of foresight—and a call to action for all Californians to prepare for the inevitable.