Colorado may not be the first state that comes to mind when thinking about earthquakes, but seismic activity is more common than many residents realize. While not as frequent as in California, Colorado has experienced hundreds of minor earthquakes and even some significant ones in recent decades. The question is: Do you need earthquake insurance as a homeowner in Colorado?

Does Colorado Experience Earthquakes?

Yes! Colorado has a history of seismic activity, with the most notable earthquakes occurring in the western and central parts of the state. The largest recorded earthquake in Colorado was a magnitude 6.6 event near the New Mexico border in 1882. More recently, smaller quakes have been felt near Greeley, Trinidad, and the Rocky Mountain Arsenal.

Experts suggest that while Colorado does not have frequent high-magnitude quakes, the potential for damage exists. The state has numerous fault lines, and human activities such as wastewater injection from oil and gas operations have been linked to increased seismic activity.

Does Homeowners Insurance Cover Earthquake Damage?

Standard homeowners insurance policies do not cover earthquake damage. If an earthquake damages your home’s foundation, walls, or belongings, you would be responsible for all repair costs unless you have a separate earthquake insurance policy.

Most major insurance providers offer earthquake endorsements that can be added to a homeowners policy or purchased separately. These policies help cover:

• Structural damage to the home and attached buildings
• Personal property losses due to earthquake-related damage
• Additional living expenses if the home becomes uninhabitable

Who Should Consider Earthquake Insurance in Colorado?

While earthquake insurance may not be essential for every homeowner, it is worth considering if you:

• Live near fault lines: Areas in western Colorado, central mountain regions, and near Greeley have experienced seismic activity.
• Own an older home: Older homes, especially those built before modern seismic codes, are more vulnerable to earthquake damage.
• Have a high-value property: If the cost to rebuild your home would be financially devastating, earthquake insurance provides crucial protection.
• Want peace of mind: Even if the risk is low, having earthquake insurance can provide security against unexpected disasters.

How Much Does Earthquake Insurance Cost in Colorado?

The cost of earthquake insurance varies based on location, home value, and deductible. In Colorado, policies typically range from $100 to $500 per year for moderate coverage. However, factors such as:

• Type of construction (brick homes are more expensive to insure)
• Age of the home (older homes have higher risk)
• Soil conditions (loose or sandy soil can increase damage risk)

Deductibles for earthquake insurance are usually between 10% and 20% of the home’s insured value, meaning you may have significant out-of-pocket costs before coverage kicks in.

Final Thoughts

While earthquakes are less common in Colorado than in other states, they are not impossible. Homeowners in high-risk areas, those with valuable properties, or anyone looking for added security may benefit from earthquake insurance. Review your current policy, assess your risk, and consult with an insurance professional to determine if adding earthquake coverage is a wise decision for your home.