Why You Probably Won't See a Dime if a Tsunami Hits Your House

Tsunamis and Earthquakes: The Hidden Gaps in Your Home Insurance

After a recent offshore earthquake triggered tsunami warnings across Hawaii, Alaska, and the West Coast, waves reached up to 5.7 feet above sea level causing minor flooding but no major U.S. damage. Still, the event was a stark reminder: standard homeowners insurance doesn’t cover tsunamis or earthquakes.

These disasters may be less frequent than hurricanes, but when they strike, the financial fallout can be catastrophic. Without earthquake insurance or flood coverage (which typically covers tsunami damage), homeowners risk paying out of pocket for structural repairs, lost belongings, and temporary housing.

If you live in a coastal or seismically active area, now’s the time to review your policy and consider adding hazard-specific coverage before the next disaster hits.

Key Takeaways

Standard homeowners insurance excludes earthquake and tsunami damage, leaving many properties vulnerable to costly disasters.
Earthquake insurance is a separate policy or rider that covers structural repairs and temporary housing costs after a quake. Tsunami damage is typically covered under flood insurance.
Despite the risks, few homeowners carry earthquake or flood coverage, often due to rising premiums and a false sense of security.

What Standard Homeowners Insurance Doesn’t Cover

While homeowners insurance typically protects against fire, lightning, frozen pipes, and personal liability, it excludes flood and earthquake damage two of the most financially devastating risks. These exclusions exist because floods and quakes cause unpredictable, large-scale losses that private insurers struggle to absorb.

For example, the 2011 Japan earthquake and tsunami cost an estimated $220 billion, making it the most expensive natural disaster in history.

Without proper coverage, rebuilding after a disaster can be financially crippling. Costs for materials, labor, and temporary housing often surge post-disaster. You may also face lost income and service outages, compounding the financial strain.

How to Insure Against Earthquake and Tsunami Damage

To fully protect your home from earthquake and tsunami damage, you’ll need two separate insurance policies one for each hazard.

Earthquake Insurance

Available as a standalone policy or add-on to homeowners insurance, earthquake coverage pays for:

Structural damage to your home
Replacement of personal belongings
Temporary living expenses if your home becomes uninhabitable

Most policies carry deductibles of 10% to 20% of your home’s insured value. For example, if your home is insured for $300,000 and your deductible is 15%, you’ll pay $45,000 out of pocket before coverage kicks in.

You can buy earthquake insurance from major providers like Geico and Farmers, or from specialists like Palomar and QuakeInsurance by Geovera. In California, the California Earthquake Authority (CEA) partners with insurers to offer state-backed coverage.

Premiums vary based on:

Home age and construction type (brick homes cost more than wood-frame)
Location and seismic risk
Insurer underwriting standards

Tsunami Insurance (via Flood Coverage)

Although tsunamis are often triggered by earthquakes, earthquake insurance won’t cover tsunami damage. Instead, you’ll need flood insurance, which can be purchased through:

The National Flood Insurance Program (NFIP)
Select private insurers

The average NFIP premium was $935/year as of 2022. Rates depend on:

Flood risk and proximity to water
Building elevation and structural features
Replacement cost of the home
Flood mitigation upgrades (e.g., flood vents)
Nearby levee performance

Note: NFIP policies typically have a 30-day waiting period, so don’t wait until a storm is forecasted.

Both earthquake insurance and flood insurance come with waiting periods before coverage begins. Earthquake policies typically require 10 to 30 days, while flood insurance especially through the National Flood Insurance Program (NFIP) imposes a standard 30-day delay. If you wait until disaster strikes, it’s likely too late to get protected.

The Earthquake & Tsunami Coverage Gap: Why Most Homes Are Unprotected

Despite California experiencing 90% of the nation’s earthquakes, only 1 in 10 residents carry earthquake insurance. Rising premiums for both homeowners insurance and hazard-specific policies like earthquake and flood coverage are a major barrier.

The National Flood Insurance Program (NFIP) has also seen declining enrollment even before recent price hikes. Many homeowners underestimate flood risk or assume government disaster aid will cover losses. But federal assistance typically only provides basic relief, not full rebuilding.

According to Brendan Steinbrecher of Tiger Adjusters, low uptake stems from:

High premium costs
Overconfidence in building codes or structural upgrades
Misjudging the likelihood and impact of disasters
Ignoring flood insurance unless in a designated high-risk zone

Even outside insurance, investing in earthquake-resistant framing or elevating your home can reduce risk and may lower premiums over time.

The Bottom Line

While tsunamis and earthquakes are less frequent than hurricanes or wildfires, their impact can be catastrophic. If you live in a high-risk zone, your standard homeowners insurance won’t cover these events. To protect your home and finances, consider purchasing: