Standard Oklahoma homeowners insurance does not cover earthquake damage. If you want financial protection from seismic activity, you’ll need earthquake insurance. Depending on the company you choose, you may be able to add earthquake coverage as an endorsement (an optional add-on) to your homeowners policy. Otherwise, you can purchase a standalone policy.
Is Oklahoma at risk for earthquakes?
Oklahoma didn't always carry this level of earthquake risk. Before 2009, the state averaged only a couple of earthquakes of magnitude 3.0 or greater each year. That number rose sharply starting in 2009, and by 2015 — the peak year for seismic activity in the state — Oklahoma recorded more than 900 earthquakes at or above magnitude 3.0.
Researchers have linked most of this increase to wastewater injection tied to oil and gas production, rather than natural fault movement. Oil and gas wells generate wastewater as a byproduct, and companies dispose of it by injecting it deep underground into a porous rock layer called the Arbuckle Formation, which lies beneath most of Oklahoma. That process can trigger earthquakes — a phenomenon known as induced seismicity.
Oklahoma's largest earthquakes on record occurred during this period, including a magnitude 5.7 earthquake near Prague in 2011 and a magnitude 5.8 earthquake near Pawnee in 2016. Since 2015, state regulators have limited how much wastewater companies can inject in high-risk areas. According to the U.S. Geological Survey, that action — along with a drop in oil production that also reduced the amount of wastewater being disposed of — has helped earthquake activity decline significantly since its 2015 peak.
Still, earthquakes continue to occur in Oklahoma, so earthquake coverage is worth considering even though the state's risk looks different from a classic fault-driven earthquake state like California.
What does earthquake insurance cover in Oklahoma?
Earthquake insurance helps cover damage caused by ground shaking that standard homeowners insurance doesn’t cover. Depending on your policy, it may cover your home’s structure, your belongings, and some additional costs if your home becomes uninhabitable.
Typically covered:
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Dwelling (your home and attached structures)
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Other structures (detached structures)
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Building code upgrades (some policies)
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Debris removal (some policies)
Typically not covered:
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Land movement or sinkholes
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Fire following an earthquake (typically covered by your home insurance policy)
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Pre-existing damage or maintenance issues
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Exterior masonry veneer (some policies)
Coverage details vary depending on the insurer and policy details. Before you buy earthquake insurance in Oklahoma, confirm whether you are covered for both natural and human-induced earthquakes and whether the policy suits your needs.
How much does earthquake insurance cost in Oklahoma?
The Oklahoma Insurance Department estimates that a typical earthquake insurance policy costs $50 to $300 per year, although your cost of coverage depends on several factors, including:
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Your home’s size, age, location, and construction materials
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The cost to rebuild your home (different from its market value)
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Your deductible (the amount of damage you’re required to cover out of pocket)
How earthquake insurance deductibles work
Unlike standard homeowners insurance deductibles, earthquake deductibles are usually percentage-based rather than a flat dollar amount. They commonly range from 2% to 10% of your home’s insured value, although some policies may have higher deductibles.
Separate deductibles might apply to your dwelling, other structures, and personal property. Read your policy documents carefully or speak with your insurer if you have questions.
Example: If your home is insured for $400,000 and you have a 5% earthquake deductible, you’re financially responsible for the first $20,000 in repairs for a covered claim before your insurer steps in.
RCV vs. ACV earthquake insurance coverage
Your claim payout will be based on either an actual cash value (ACV) or replacement cost value (RCV) basis. Actual cash value ACV coverage pays the depreciated value of damaged property. RCV coverage ays to repair or replace covered property with new materials of a similar kind and quality. RCV policies generally come with higher premiums (the amount you pay monthly or annually for coverage) but can provide larger claim payouts for a covered loss.
How to reduce earthquake damage to your Oklahoma home
While you can’t prevent an earthquake, taking a few preventive steps can help reduce the risk of injuries and property damage.
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Secure heavy furniture and appliances. Anchor bookcases, water heaters, cabinets, and large appliances to walls with straps or brackets.
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Consider a seismic retrofit. Older homes, especially those with brick or masonry veneer, may benefit from a professional evaluation to identify ways to improve earthquake resistance.
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Anchor your home to its foundation. Homes built on crawl spaces are especially vulnerable to earthquake damage.
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Reinforce masonry chimneys. Unreinforced brick or stone chimneys are prone to cracking or collapsing during a quake.
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Store hazardous materials safely. Keep flammable liquids and other hazardous materials in sealed containers on low, stable shelves.
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Know how to shut off utilities. Make sure everyone in your household knows how and where to turn off the gas, water, and electricity after an earthquake.
Is earthquake insurance worth it in Oklahoma?
Whether purchasing earthquake insurance in Oklahoma is worth it depends on your financial situation and risk tolerance. Many insurance companies won't sell new earthquake coverage for a period of time after an earthquake — often 30 to 60 days — because of the risk of aftershocks. If you’re considering coverage, the best time to buy is well before you need it.
Earthquake insurance may be worth considering if you:
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Live in an area with a history of earthquake activity
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Would have difficulty paying for major repairs or rebuilding costs
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Have a mortgage lender that requires earthquake coverage
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Want financial protection against a risk that standard homeowners policies exclude
On the other hand, if you live in a lower-risk part of the state and have enough savings to cover repairs yourself, you may decide to forgo signing up for earthquake coverage.
Frequently asked questions
Is earthquake insurance worth it in Oklahoma?
It depends on your location, finances, and comfort with risk. Earthquake insurance in Oklahoma may be worth considering if you live in an area with a history of earthquake activity, couldn't easily pay for major repairs yourself, and want coverage for a risk that’s excluded from standard home insurance policies.
How much is earthquake insurance in Oklahoma?
The Oklahoma Insurance Department estimates that a typical earthquake insurance policy costs $50 to $300 a year, although your premium depends on factors such as your home’s age, size, construction, location, and rebuilding cost, along with your policy deductible.
Do most home insurance policies cover earthquakes?
No. Most standard homeowners insurance policies exclude earthquake damage. To protect your home from earthquake losses, you’ll typically need to purchase separate earthquake insurance as an endorsement or a standalone policy.
