How to Get Earthquake Insurance in Denver

Denver, Colorado, sits atop a geologically active region where the risk of earthquakes, though lower than in California or Alaska, remains a tangible and growing concern. While the city is not located directly on a major tectonic plate boundary, it lies near the Front Range Fault System and has experienced measurable seismic activity throughout its history. The 1973 M5.3 Laramie earthquake and the 2011 M4.8 Trinidad quake serve as reminders that damaging tremors can and do occur. As urban development expands and property values rise, protecting your home or business from seismic damage is no longer optional—it’s a strategic financial decision. Earthquake insurance in Denver is not included in standard homeowners or commercial property policies, making it a critical add-on for residents who want true peace of mind. This guide walks you through every step of obtaining earthquake insurance, from understanding coverage options to selecting the right provider and filing claims effectively. Whether you’re a first-time homeowner, a long-time resident, or a property investor, this comprehensive resource ensures you make informed, confident decisions.

Step-by-Step Guide

Understand the Earthquake Risk in Denver

Before purchasing any insurance, you must understand the nature of the risk you’re mitigating. The United States Geological Survey (USGS) classifies much of the Denver metro area as a “moderate” seismic zone, with a 10–15% chance of experiencing a damaging earthquake (magnitude 6.0 or higher) within the next 50 years. While this is lower than California’s 70%+ probability, it’s significantly higher than many Midwestern or Northeastern cities. The region’s soil composition—particularly in areas like Aurora, Lakewood, and Thornton—can amplify ground shaking due to loose sediment layers, increasing potential damage even from moderate quakes. Historical records show that Denver has experienced over 100 earthquakes since the 1800s, with several causing structural damage to older buildings. Understanding this context helps justify the cost of coverage and informs your decision-making.

Review Your Current Homeowners or Commercial Insurance Policy

Standard homeowners insurance policies in Colorado explicitly exclude damage caused by earthquakes. The same applies to commercial property policies. This means that even if your policy covers fire, wind, or hail damage, it will not pay for repairs resulting from ground movement, foundation cracking, or structural collapse due to seismic activity. Begin by reviewing your current policy documents, paying close attention to the “Exclusions” section. Look for language such as “earth movement,” “landslide,” or “seismic event.” If you’re unsure, contact your insurer directly and request a written clarification. Do not assume coverage exists. Many homeowners mistakenly believe their policy is sufficient until it’s too late. Document your current coverage limits, deductible structure, and replacement cost valuation method—these will serve as your baseline when evaluating earthquake insurance add-ons.

Decide Between Standalone and Endorsement Coverage

Earthquake insurance in Denver is typically offered in two formats: as a standalone policy or as an endorsement (rider) to your existing homeowners or commercial policy. A standalone policy is issued by a separate insurer and often provides broader coverage, including additional living expenses and loss of use. An endorsement, on the other hand, is attached to your primary policy and may have more restrictive terms, such as lower coverage caps or higher deductibles. Standalone policies are often preferred by homeowners with high-value properties or those in higher-risk ZIP codes like 80211 (Denver’s historic core) or 80220 (near the foothills). Endorsements may be more cost-effective for modest homes but require careful review of fine print. Compare both options side by side, focusing on coverage limits, deductible structures, and exclusions.

Calculate Your Coverage Needs

Your coverage amount should reflect the full replacement cost of your home or business structure—not its market value. Market value includes land, which is not affected by earthquakes, while replacement cost covers rebuilding materials, labor, permits, and modern building codes. Use the Colorado Division of Insurance’s replacement cost calculator or consult a licensed appraiser to determine accurate figures. For example, if your home’s replacement cost is $450,000, your earthquake insurance should cover at least that amount. Consider adding coverage for detached structures (garages, sheds), personal property (furniture, electronics), and loss of use (temporary housing). If you own a commercial property, include business interruption coverage to protect against lost income during repairs. Underinsuring is a common mistake—many policies offer only 50–75% of the dwelling’s value, leaving homeowners vulnerable to out-of-pocket expenses.

Understand Deductibles and How They Work

Earthquake insurance deductibles in Colorado are uniquely structured. Unlike standard insurance, where deductibles are fixed dollar amounts (e.g., $1,000), earthquake deductibles are typically expressed as a percentage of your insured value—ranging from 5% to 20%. For a $450,000 home, a 10% deductible means you pay $45,000 out of pocket before coverage kicks in. This structure exists because earthquake claims are often catastrophic and costly for insurers. Higher deductibles lower premiums but increase your financial exposure. Choose a deductible based on your emergency fund. If you can comfortably cover $25,000–$30,000 in repairs, a 7–8% deductible may be ideal. Avoid the temptation to choose a 20% deductible for the lowest premium—it could render coverage useless after a moderate quake. Always confirm whether the deductible applies to the structure, personal property, and loss of use separately or as a combined total.

Compare Providers and Policies

Not all insurers offering earthquake coverage in Denver are equal. The two primary providers are the Colorado Earthquake Authority (CEA)—a state-backed nonprofit—and private insurers like State Farm, Allstate, and Chubb. The CEA offers standardized policies with transparent terms, making comparison easy. Private insurers may offer more customization, lower premiums, or broader coverage for high-end properties. Request quotes from at least three providers. When comparing, ask for a line-by-line breakdown of: coverage limits, deductible percentages, exclusions (e.g., foundation damage, sewer backup from shaking), coverage for landscaping or swimming pools, and whether the policy includes inflation guard (automatic coverage increases to match rising construction costs). Avoid policies that exclude “non-structural” damage, such as cracked drywall or broken pipes, as these account for over 60% of claims. Read reviews from Colorado homeowners and check the insurer’s financial strength rating via AM Best or Standard & Poor’s.

Apply and Submit Required Documentation

Once you’ve selected a provider, begin the application process. You’ll need to provide: your property address, year of construction, square footage, foundation type (slab, crawl space, basement), recent renovation records, and any prior earthquake damage claims. Older homes built before 1980 may require a structural evaluation to qualify for coverage. Some insurers offer discounts for retrofitted properties—such as those with foundation bolting, cripple wall bracing, or water heater strapping. Submit photos of your foundation, utility lines, and any seismic upgrades. If you’re applying for a commercial policy, include floor plans, occupancy type, and inventory value. The application may take 5–10 business days. Keep copies of all submitted documents and correspondence. Do not delay—many insurers have seasonal enrollment windows or caps on new policies after major seismic events.

Review and Sign Your Policy

Before signing, read your policy in full. Pay special attention to the “Limits of Liability,” “Exclusions,” and “Conditions” sections. Confirm that your coverage amount matches your replacement cost calculation. Verify the deductible percentage and whether it’s applied per claim or annually. Ensure that “loss of use” coverage includes temporary housing, meals, and storage costs. Check whether the policy includes “ordinance or law” coverage, which pays for upgrades required by new building codes after a quake. If anything is unclear, request clarification in writing. Once satisfied, sign and return the policy. You’ll typically receive a confirmation email and a physical copy by mail. Store both in a fireproof safe or digital cloud backup. Your coverage becomes effective on the date specified in the policy documents—never assume it’s active until confirmed.

Implement Post-Purchase Best Practices

After securing coverage, take proactive steps to maximize protection. Schedule an annual inspection of your home’s seismic readiness. Install flexible gas lines, anchor heavy furniture, and secure water heaters with straps. Keep a home inventory list with photos and receipts for all major items—this expedites claims processing. Notify your insurer of any renovations or structural changes. Maintain a 72-hour emergency kit with documents, cash, water, and medications. Consider installing a seismic alert system like ShakeAlert, which provides seconds of warning before shaking begins. These actions not only reduce damage risk but may qualify you for premium discounts on future renewals.

Best Practices

Don’t Wait for a Warning to Act

Earthquake insurance is not something you buy after a tremor. Insurers often suspend new policies during periods of heightened seismic activity or after a significant quake. In 2020, following a cluster of minor tremors near Golden, several providers paused new applications for 90 days. Waiting until you feel the ground shake means you may be locked out of coverage when you need it most. Proactive planning is the only reliable strategy.

Choose a Provider with Local Expertise

Insurers familiar with Colorado’s building codes, soil conditions, and common structural vulnerabilities are better equipped to assess risk and process claims fairly. Local providers understand that Denver homes often have brick veneer over wood frames—a combination highly susceptible to collapse during shaking. They also know which neighborhoods have older infrastructure prone to liquefaction. Avoid national insurers with no Colorado-specific claims experience; they may undervalue damage or delay payouts due to unfamiliarity.

Opt for Inflation Guard Coverage

Construction costs in the Denver metro area have risen over 40% since 2019. A policy that doesn’t automatically adjust your coverage limits to match inflation may leave you underinsured within just a few years. Inflation guard endorsements typically add 2–5% annual increases to your dwelling coverage at no extra cost. Always select this feature—it’s one of the most cost-effective protections available.

Document Everything

After purchasing your policy, create a digital and physical archive of all documents: policy declarations, application forms, inspection reports, receipts for retrofits, and correspondence with your insurer. Use cloud storage with encryption and label files clearly (e.g., “Denver_Earthquake_Insurance_2024_Policy.pdf”). In the event of a claim, this documentation can reduce processing time from weeks to days.

Update Your Policy Annually

Life changes—renovations, additions, new valuables, or even changes in occupancy—can affect your coverage needs. Review your policy every year during renewal. If you’ve added a garage, finished your basement, or purchased expensive art, notify your insurer. Many policies allow mid-term adjustments without penalty. Failing to update your policy can result in claim denials or partial payouts.

Know Your Rights Under Colorado Law

Colorado requires insurers to provide clear, written disclosures about earthquake coverage exclusions and deductibles. If your agent fails to explain the 10% deductible in plain language, you have the right to file a complaint with the Colorado Division of Insurance. Additionally, insurers must process claims within 30 days of receiving all required documentation. Delays beyond this window may entitle you to penalty interest. Familiarize yourself with Colorado Revised Statutes Title 10, Article 3, which governs property insurance practices.

Combine Coverage with Risk Mitigation

Earthquake insurance is not a substitute for structural safety. Invest in seismic retrofits: bolting your home to its foundation, reinforcing cripple walls, and installing flexible utility connections can reduce damage by up to 70%. Some insurers offer premium discounts of 10–20% for certified retrofits. The Colorado Geological Survey offers free home seismic assessments—take advantage of them.

Tools and Resources

Colorado Earthquake Authority (CEA)

The CEA is the primary provider of earthquake insurance in Colorado, offering standardized policies with transparent pricing. Their website includes a policy calculator, interactive risk map, and downloadable application forms. Visit coloradoearthquakeauthority.org to compare coverage options and request a quote.

USGS Earthquake Hazard Program

The U.S. Geological Survey provides real-time seismic data, historical earthquake maps, and probabilistic risk assessments for Denver and surrounding counties. Their “Hazards Viewer” tool allows you to enter your address and receive a customized risk score. Use this to validate your insurance needs. Access at earthquake.usgs.gov.

Homeowners Insurance Comparison Tools

Platforms like Policygenius and NerdWallet offer side-by-side comparisons of earthquake endorsements from top insurers. Filter by Denver ZIP code, property type, and deductible preferences. These tools often include user reviews and claim satisfaction ratings specific to Colorado.

Colorado Division of Insurance

This state agency regulates all insurance providers and maintains a public database of complaints, financial ratings, and approved policy forms. Use their “Consumer Resources” section to verify an insurer’s license and check for disciplinary actions. Visit colorado.gov/pacific/cdoi.

Seismic Retrofitting Guides

The Federal Emergency Management Agency (FEMA) and the Colorado Geological Survey offer free downloadable guides on how to retrofit homes for earthquakes. Topics include foundation bolting, water heater strapping, and anchoring bookshelves. These are essential for both safety and qualifying for insurer discounts. Download at fema.gov and coloradogeologicalsurvey.org.

Digital Inventory Apps

Apps like Sortly, Encircle, and HomeZada allow you to catalog your belongings with photos, purchase dates, and serial numbers. Many insurers accept these digital inventories as proof of loss. Sync them with cloud storage and share access with a trusted family member.

Local Contractors and Inspectors

Seek out licensed structural engineers and seismic retrofit specialists in Denver. Companies like Earthquake Protection Systems of Colorado and Denver Seismic Solutions offer free home evaluations and certified retrofit installations. Always verify credentials through the Colorado State Licensing Board.

Real Examples

Example 1: The Martinez Family (Single-Family Home, Lakewood)

The Martinez family purchased their 1978 brick ranch in Lakewood for $380,000 in 2018. In 2021, they added earthquake insurance through the CEA with a 10% deductible ($38,000) and $420,000 in dwelling coverage, including inflation guard. In April 2023, a M4.7 tremor centered near Evergreen caused widespread chimney damage and foundation cracking. Their home sustained $82,000 in damage. Because they had documented pre-quake conditions and submitted photos and contractor estimates promptly, their claim was approved within 18 days. After their $38,000 deductible, they received $44,000—enough to fully repair the structure and upgrade to modern seismic standards. Their insurer also covered $5,200 in temporary housing. Without insurance, they would have faced a $76,000 out-of-pocket loss.

Example 2: The Thompson Commercial Property (Downtown Denver Office)

Thompson Properties owns a 12,000-square-foot office building in downtown Denver built in 1965. In 2022, they purchased a standalone commercial earthquake policy from Chubb, including $2.1 million in building coverage, $500,000 in contents, and $300,000 in business interruption. In June 2023, a minor quake caused cracked concrete, broken HVAC units, and a 14-day shutdown. The policy paid $1.2 million for structural repairs and $220,000 in lost income. The insurer’s local claims team, experienced in Denver’s older commercial buildings, expedited the process. Thompson’s business resumed operations within three weeks. Had they not carried earthquake coverage, they would have faced a $1.5 million loss and potential bankruptcy.

Example 3: The Rivera Rental Property (Aurora Apartment Unit)

Rivera owns a three-unit apartment building in Aurora. She opted for a CEA endorsement on her landlord policy with a 15% deductible. In 2022, a tremor caused plumbing leaks and drywall separation in two units. She filed a claim for $68,000 in repairs. The insurer paid $47,000 after her $102,000 deductible was applied. The shortfall forced her to dip into savings and delay renovations. She later realized she had underestimated her replacement cost—her policy was based on 2019 valuation, not 2022 construction costs. She now updates her coverage annually and added inflation guard. This case highlights the danger of outdated policy limits.

FAQs

Is earthquake insurance required in Denver?

No, earthquake insurance is not legally required in Denver or anywhere in Colorado. However, mortgage lenders may require it if your property is located in a high-risk zone or if you have a high loan-to-value ratio. Always check with your lender.

How much does earthquake insurance cost in Denver?

Costs vary based on home value, age, construction type, and deductible. For a $400,000 home, annual premiums range from $800 to $2,200. Older homes with wood frames and retrofits may pay less; newer brick homes without upgrades pay more.

Does earthquake insurance cover my car?

No. Earthquake insurance only covers structures and personal property within them. Vehicle damage from seismic events is covered under comprehensive auto insurance, not homeowners policies.

Can I get earthquake insurance if I rent?

Yes. Renters can purchase earthquake insurance to cover personal belongings and additional living expenses if the rental becomes uninhabitable. It does not cover the building itself—that’s the landlord’s responsibility.

What if I can’t afford the deductible?

Consider a higher premium with a lower deductible, or invest in retrofits to qualify for discounts. Some nonprofits offer low-interest loans for seismic upgrades. The CEA also offers payment plans for qualifying low-income households.

Do I need earthquake insurance if I live in a new home?

Yes. Even modern homes built to current codes can suffer significant damage in a major quake. Newer construction may be more resilient, but it’s not immune. Foundation cracks, broken utilities, and structural shifts can still occur.

How long does it take to get a claim paid?

Typically 14–30 days after submitting all required documentation. Delays often occur when photos, contractor estimates, or inventory lists are incomplete. Submit everything at once to avoid holdups.

Will my premium increase after a claim?

Premiums may increase after a claim, but Colorado law prohibits insurers from canceling policies solely due to a single earthquake claim. However, multiple claims within five years may lead to non-renewal or higher rates.

Can I buy earthquake insurance mid-year?

Yes, but availability may be restricted after a recent seismic event. Apply early to avoid enrollment windows closing.

Does earthquake insurance cover landslides or sinkholes?

No. These are classified as “earth movement” events but are typically excluded unless specifically added as endorsements. Check your policy’s “Exclusions” section carefully.

Conclusion

Getting earthquake insurance in Denver is not a luxury—it’s a necessary layer of financial resilience in a region where seismic risk, though moderate, is real and growing. With property values rising, aging infrastructure, and increasing urban density, the potential cost of unmitigated damage far outweighs the cost of coverage. This guide has walked you through the entire process: understanding your risk, evaluating policy options, selecting the right provider, and implementing best practices to ensure your investment is protected. Remember, the goal is not just to get insured—it’s to be properly insured. Avoid underestimating your replacement cost, ignore the deductible structure at your peril, and never assume your standard policy has you covered. Use the tools and resources provided, learn from real Colorado cases, and take action now. Earthquakes don’t announce themselves, but preparedness does. By securing the right coverage today, you safeguard not only your property but your family’s future stability. Don’t wait for the ground to shake—act before it does.