Earthquake Insurance Insured losses from earthquakes and tsunamis were $313 million in 2014.* Earthquakes are a natural disaster that might not be included in homeowners, renters or condo insurance. The cost of earthquake insurance varies depending on what state your home is. California residents buy the most earthquake insurance because of the many fault lines, but policyholders don’t have to live near a fault line to buy earthquake insurance.Often, earthquake insurance only covers the original structure of the home, excluding renovations or add-ons. Different policies have different coverage options, so it is up to the policyholder to make the right decision based on their circumstances.*“Earthquakes and Tsunamis.” Insurance Information Institute. 2015.