What is Earthquake Insurance? - Insurance Navy. Earthquake insurance is a specific type of insurance designed to cover earthquake damage. Earthquake insurance policies are stand-alone policies offered by insurance companies, which are typically purchased separately from the standard renters insurance or standard homeowners insurance policy as a form of additional coverage from natural disasters. Earthquake coverage may include dwelling coverage (covers structural damages and building materials, personal property coverage (damages to personal property inside the dwelling), additional structures (such as garages, swimming pools, and sheds), and current building code upgrades. Furthermore, it can also cover temporary additional living expenses and temporary housing if the property becomes inhabitable. It’s important to note that earthquake insurance usually has a high deductible, which means the policyholder must pay a certain amount out-of-pocket before the insurance coverage kicks in.