Basic homeowners insurance do not cover damages caused by earthquake. A separate earthquake insurance policy may be purchased for this purpose, especially if you live near a fault line. Earthquake insurance costs vary depending on your location, the building materials used (wood can better withstand earthquake than brick), and the “age” of your home.

Californians buy the most earthquake insurance, but there are fault lines all over the US that caused insurers to worry. The New Madrid Fault runs through Arkansas, Kentuky, Missouri and Tennessee. The Insurance Information Institute predicts that the region will experience a 6.0 magnitude earthquake in the next 15 years. The eastern part of US may also encounter a major earthquake in the next 20 years.