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Flood and Earthquake: What Home Insurance Excludes

By Richard Sweet. Reviewed by Richard Sweet. Updated June 26, 2026.

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Two of the most damaging events a home can face, flood and earthquake, are excluded from standard homeowners policies. Understanding that gap is the first step to deciding what to do about it.

Why they are excluded

Homeowners policies exclude both flood and earthquake by design, so a flooded or quake-damaged home is generally an uncovered loss without separate coverage. Given how damaging both are, that is a significant gap for many households.

Flood: not just for flood zones

Flood is the most common natural disaster, and a large share of flood claims come from properties outside mapped high-risk zones. Coverage is available through the National Flood Insurance Program and a growing private market, and lenders often require it in high-risk areas.

Earthquake: a Western reality

Across the West, earthquake is a real exposure, and coverage uses a percentage deductible tied to your home’s value. That makes it a decision about catastrophic protection for your largest asset, not small claims. If your home is in Oregon or Washington, our deeper guide to earthquake insurance in Oregon and Washington covers the coverage gap, deductibles, Cascadia risk, and what to compare.

What to do

Decide flood and earthquake on purpose rather than by default. Confirm whether your home has real exposure, compare the coverage options, and weigh whether your household could absorb rebuilding without them. A review helps you decide.

Questions to ask your advisor

  • Is flood or earthquake handled anywhere on my current coverage, or is each fully excluded?
  • What is my home’s real flood exposure, even if I am outside a mapped high-risk zone?
  • Where would I buy flood coverage, and how do NFIP and private options compare for my home?
  • For earthquake, what would the percentage deductible look like in real dollars on my home?
  • Could my household absorb a rebuild without either coverage, and where does that leave the decision?

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What many people don't realize

The part that catches owners off guard

  • Standard homeowners policies exclude both flood and earthquake.
  • Flood and earthquake are each covered separately, by a flood policy and an earthquake policy or endorsement.
  • A large share of flood claims come from outside mapped high-risk zones.
  • Earthquake coverage typically uses a percentage deductible tied to the home's value, not a flat amount.
The Vantage Point

What we see most often

Two of the most damaging events a home can face, flood and earthquake, are the two a standard homeowners policy leaves out. People discover this at the worst possible time, after the loss, when the assumption that the home was covered turns out to be wrong.

The fix is not to panic-buy both. It is to decide each one on purpose, against your home's actual exposure and whether your household could absorb a rebuild without help. That is a knowable decision, and it is far better made before an event than after one.

A real example

A homeowner outside any mapped flood zone never thought about flood insurance, because no one required it. After a heavy storm pushed water into the home, the loss fell outside the standard homeowners policy, which excludes flood, and there was no separate flood policy to respond.

A modest flood policy, decided on purpose rather than skipped by default, would have changed that outcome. The figures here are illustrative, and the lesson is the one that catches the most households: a lot of flood damage happens to homes that were never told they were at risk.

Details changed to protect privacy. Shared to illustrate, not to promise an outcome.

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When to review

It may be time for a coverage review if:

  • You have never confirmed whether your home carries separate flood or earthquake coverage
  • Your home is outside a mapped flood zone but could still take on water
  • You live in a region with real earthquake exposure
  • Most of your net worth is tied up in your home
  • You are reviewing your personal insurance before a renewal
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Frequently asked

Frequently asked

Does homeowners insurance cover flood or earthquake?
No. Both are excluded from standard homeowners policies and require separate coverage, a flood policy and an earthquake policy or endorsement.
Do I need flood insurance outside a flood zone?
It is worth considering. A large share of flood claims come from lower-risk areas, so the decision should be based on actual risk, not just whether it is required.
Why is earthquake insurance's deductible so high?
It uses a percentage of your home's value rather than a flat amount, because it is designed for catastrophic loss. That is the right way to weigh the coverage.
Where can I buy flood insurance?
Coverage is available through the National Flood Insurance Program and a growing private market. Lenders often require it in high-risk areas, but it can be purchased even where it is not required.
How should I decide whether to add flood or earthquake coverage?
Confirm whether your home has real exposure, compare the coverage options, and weigh whether your household could absorb rebuilding without them. It is a decision to make on purpose, not by default.
RS
Written and reviewed by

Richard Sweet

Founder and Principal Advisor, Vantage Point Risk

Richard Sweet runs Vantage Point Risk, an independent insurance and risk advisory for property owners, real estate investors, business owners, and families. He works with investors every week on the coverage decisions that decide how a claim actually turns out, and writes the Learning Center to put those decisions in plain language.

Reviewed for accuracy by Richard Sweet. Last updated June 26, 2026.

Richard also writes The Vantage Point, notes on building a better business.

This is general educational information, not a coverage determination or legal advice. Coverage varies by insurance company, policy form, state, endorsements, limits, deductibles, exclusions, and underwriting eligibility. Actual coverage depends on the specific policy language and the facts of a specific loss.

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