Earthquakes are often thought of as a risk for California or other high‑fault zones. But for Washington state, the threat is real—and in many ways underappreciated. As more people recognize that “when,” not “if,” a major quake hits, securing proper coverage is becoming a critical part of financial preparedness. In this post, we’ll explore why earthquake insurance matters, what recent data from WA tells us, and how people can evaluate their options.
1. The Risk Is Real — and Significant in Washington
Seismic exposure in WA
● The Cascadia Subduction Zone (CSZ), offshore of Washington, poses one of the most serious earthquake threats in North America. When a major rupture occurs, shaking could be widespread, landslides triggered, and infrastructure severely impacted.
The Nisqually Earthquake (magnitude ~6.8) in 2001 remains a cautionary example — more than 9,500 insurance claims were filed, and insurers paid over $315 million for damage repair. NW Insurance Council
It is a reminder that even quakes considered “moderate” can cause widespread damage when population density, soil conditions, and building age/methods compound the risk.
2. The Coverage Gap: What WA Data Shows
Only about 11 percent of Washington homeowners carry earthquake insurance. The Olympian+1
In contrast, 43 percent of commercial properties in the state reportedly carry earthquake coverage. The Olympian
3. Why the Investment Makes Sense
Financial protection against catastrophic loss
Without earthquake coverage, homeowners may face paying tens or hundreds of thousands of dollars out-of-pocket to repair or rebuild their home. Even damage that seems “moderate” can spiral in cost when structural, foundation, and soil issues are involved.
Resilience & faster recovery
Insurance acts as a financial safety net, enabling repair or rebuilding faster. It reduces the burden on personal savings, credit lines, or disaster relief that may take time. The National Association of Insurance Commissioners (NAIC) describes earthquake coverage as a mechanism to transfer catastrophic risk and reduce long-term economic burden on individuals and communities.