Top U.S. Earthquake Insurance Companies: Market Overview and Coverage Insights
Earthquake insurance is a specialized property coverage essential for individuals in seismically active U.S. regions, as standard homeowners' policies generally exclude earthquake damage. This insurance protects against financial losses from structural damage, personal property loss, and additional living expenses in zones such as California's San Andreas Fault and the New Madrid Seismic Zone. Major earthquake insurers in the U.S. include FM Global, Palomar Holdings, Zurich Insurance Group, State Farm, Berkshire Hathaway, Chubb, Travelers Group, QBE Insurance Group, GeoVera Holdings, and Liberty Mutual. Each of these companies offers distinct approaches and financial strengths to earthquake risk management and coverage.
FM Global reported a $26 billion surplus for 2024 and emphasizes risk control through property-loss prevention and engineering tailored insurance solutions. It holds an A+ financial strength rating from AM Best, signifying strong capital and underwriting resilience. Palomar Holdings experienced record premium growth and provides coverage for residential and commercial clients, supported by significant reinsurance capacity to manage major claims.
Zurich Insurance Group achieved record earnings in 2024 with robust solvency ratios, offering earthquake coverage primarily as a policy rider with regional variations in deductibles and coverage specifics. State Farm rebounded financially with improved underwriting results and offers earthquake policies nationwide, with deductibles typically based on a percentage of insured home value, cost varying by seismic risk.
Berkshire Hathaway saw strong financial performance driven by its insurance operations, providing specialized earthquake coverage through its subsidiaries, often featuring high deductibles. Chubb reported record net income with a favorable combined ratio despite catastrophe losses; its earthquake insurance covers physical damage and is offered separately from standard homeowners' policies.
Travelers Group posted consecutive growth and strong underwriting income in 2024, providing earthquake insurance that covers structural damages and personal belongings, including additional living expense coverage. QBE Insurance Group improved operating ratios and offers commercial earthquake insurance with regional policy variations.
GeoVera Holdings, focusing on residential earthquake insurance in earthquake-prone western states, improved its financial standing following structural changes and AM Best upgrades. Their policies incorporate flexible deductibles and streamlined online services. Liberty Mutual reported significant income gains, offering both traditional and parametric earthquake coverage that leverages sensor-based technology to expedite claims.
All leading earthquake insurers highlight the exclusion of earthquake damage in standard policies, necessitating separate or add-on earthquake coverage. Core coverage typically includes dwelling protection, other structures, personal belongings, and additional living expenses when homes are uninhabitable.
High deductibles are a consistent feature across the industry, reflecting the high-risk nature and cost of earthquake claims. These deductibles often represent a substantial percentage of the insured value, requiring policyholders to share initial costs. Nonetheless, insurers emphasize the importance of this coverage as a financial safety net against severe natural disasters in high-risk geographic locations.
In summary, earthquake insurance companies in the U.S. continue to strengthen financial positions, enhance underwriting performance, and deploy innovative products to address seismic risk. Regulatory recognition of financial strength ratings supports industry confidence. Market leaders balance risk through reinsurance and engineering-driven risk mitigation, underlining a sector focused on resilience and client financial protection amid unpredictable earthquake threats.