Should I Get Earthquake Insurance in Kentucky?

Yes, especially in western Kentucky. Western Kentucky sits directly on the New Madrid Seismic Zone — one of the highest earthquake risks in the continental U.S. outside of California. Standard Kentucky homeowners policies exclude earthquake damage entirely. Earthquake coverage is inexpensive (often $100-$400/year in Kentucky) relative to the exposure and Blake recommends it strongly for anyone west of Louisville.

The New Madrid Seismic Zone

The New Madrid Seismic Zone runs from Cairo, Illinois south through western Kentucky, Tennessee, Missouri, and Arkansas. In 1811-1812 it produced three of the largest earthquakes ever recorded in North America — estimated 7.0-8.0 magnitude events that reshaped the Mississippi River. USGS estimates a 25-40% chance of a repeat magnitude 6.0+ event within 50 years and a 7-10% chance of a magnitude 7.5+ event.

Why Standard Homeowners Excludes Earthquake

Every standard Kentucky HO-3 policy contains a broad earthquake exclusion:

• Direct earthquake damage — excluded
• Aftershocks within a defined period — treated as part of the same event
• Sinkholes and land movement — often excluded (varies by carrier)
• The exclusion applies to dwelling, other structures, personal property, and loss of use

How Earthquake Coverage Works

Earthquake insurance in Kentucky comes as an endorsement to your existing homeowners or as a stand-alone policy:

• Covers the dwelling, other structures, personal property, and loss of use — parallel to homeowners
• Deductible is percentage-based (5%, 10%, 15%, sometimes 20%) — much higher than a wind deductible
• On a $300,000 home with a 10% earthquake deductible, the first $30,000 is out of pocket
• Premium is relatively low because Kentucky earthquakes are infrequent — but catastrophic when they happen

Kentucky Earthquake Pricing

General ranges Blake sees in western Kentucky:

• West of Louisville: $150-$500/year for meaningful coverage
• Central Kentucky (Louisville metro): $100-$300/year
• Eastern Kentucky: $50-$150/year (lower risk)
• Older masonry homes and homes with unreinforced foundations cost more

What’s NOT Covered Even With Earthquake Coverage

Common exclusions that surprise Kentucky homeowners:

• Damage from resulting fire — usually covered by BASE homeowners, not the earthquake endorsement (this is actually good news)
• Damage from flood resulting from an earthquake — need separate flood insurance
• Damage to detached masonry structures — sometimes sub-limited
• Pre-existing damage — carriers may exclude if you had prior settlement or foundation issues

Kentucky Business Owners and Renters

Two often-overlooked exposures:

• Kentucky businesses need commercial earthquake — commercial property forms also exclude earthquake by default
• Renters in western Kentucky can add earthquake to a renters policy for a few dollars per month — protects your personal property even though the building is the landlord’s problem

Written by Blake Boswell, owner of the Boswell Insurance Agency, Murray, KY.