Thompson Insurance Agency

Earthquake Insurance
in Tennessee
and Mississippi

Memphis sits at the edge of the New Madrid Seismic Zone — one of the most seismically active regions in North America. Earthquake damage is excluded from your standard homeowners policy. We help Mid-South homeowners close that gap with the right coverage before it is needed.

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Plain-English Coverage Guide

What Earthquake Insurance Does — and Why It Matters Here

The New Madrid Seismic Zone (NMSZ) runs through Missouri, Arkansas, Tennessee, Kentucky, and Mississippi — with Memphis sitting directly in its path. In 1811–1812, a series of massive earthquakes along this fault system were among the most powerful ever recorded in North America, strong enough to temporarily reverse the flow of the Mississippi River. USGS and FEMA both identify Shelby County and DeSoto County as high-risk earthquake zones. Smaller tremors occur regularly across the region; a major event remains a recognized long-term risk that Memphis and its suburbs must take seriously.

Standard homeowners policies exclude earthquake damage entirely. That means cracked foundations, collapsed chimneys, structural damage, and destroyed personal property following a seismic event would not be covered without a dedicated earthquake policy. For Memphis-area homeowners — particularly those in older homes, brick construction, or unreinforced masonry structures — this gap represents one of the most significant uninsured exposures in the region.

Who Needs It

When Earthquake Coverage is the Right Call

Memphis Metro Homeowners

Any homeowner in Shelby County, DeSoto County, or the surrounding Mid-South region lives within the seismic influence zone of the New Madrid fault system. FEMA has identified Memphis as one of the cities in the eastern US most vulnerable to earthquake damage.

Older Homes and Brick Structures

Homes built before modern seismic building codes — particularly those with unreinforced brick or masonry construction — are significantly more vulnerable to earthquake damage. Many neighborhoods in Memphis, Germantown, and Collierville have substantial older housing stock that warrants earthquake coverage consideration.

High-Equity Homeowners

If you have significant equity in your home, earthquake coverage protects that investment from a catastrophic loss scenario. Without coverage, a major seismic event could result in a total structural loss with no insurance response — leaving only whatever FEMA disaster assistance is available, which is limited.

Mortgage Holders in High-Risk Areas

While lenders do not universally require earthquake insurance in Tennessee or Mississippi, some do — particularly for properties in mapped seismic hazard zones. Even where not required, protecting the collateral of a major loan with earthquake coverage is a sound financial decision.

What's Typically Included

Core Earthquake Coverage Components

Dwelling / Structure Coverage

Pays to repair or rebuild your home's structure if damaged or destroyed by an earthquake. This includes foundations, walls, roofing, framing, and attached structures. Coverage limits should align with your homeowners dwelling coverage replacement cost.

Personal Property Coverage

Covers your belongings — furniture, electronics, clothing, and more — for damage caused by earthquake shaking, falling, or structural collapse. Coverage limits and settlement terms (replacement cost vs. actual cash value) vary by carrier.

Additional Living Expenses

If your home is uninhabitable following an earthquake, ALE coverage pays for temporary housing, meals, and other necessary costs while repairs are completed. Not all earthquake policies include this automatically — we review it specifically with each client.

Loss of Use and Emergency Repairs

Some policies also cover emergency repairs made immediately after an earthquake to prevent further damage, along with loss of use costs. These details matter significantly in a real claim scenario and are part of the review we conduct for every earthquake policy placement.

Know Your Gaps

What Earthquake Policies Typically Exclude

Common Questions

Earthquake Insurance FAQ

The New Madrid Seismic Zone (NMSZ) is a major seismic zone running through Missouri, Arkansas, Tennessee, Kentucky, and Mississippi. It produced some of the largest earthquakes in recorded North American history in 1811–1812, strong enough to temporarily reverse the flow of the Mississippi River. Scientists consider a major NMSZ event a realistic long-term probability, and the impact on Memphis and the surrounding region would be significant.
No. Earthquake damage is specifically excluded from every standard homeowners policy. A separate earthquake endorsement or stand-alone earthquake policy is required to cover damage caused by seismic activity.
USGS and FEMA have both identified the Memphis metropolitan area as one of the highest-risk earthquake zones in the eastern United States. Studies have estimated that a major NMSZ event could cause catastrophic damage across Shelby County, DeSoto County, and the broader Mid-South region. Risk is not a distant concern — it is ongoing background seismic activity with potential for larger events.
Earthquake insurance typically covers damage to your home's structure, your personal belongings, and additional living expenses if your home is uninhabitable following a quake. Policy structure varies by carrier — some offer stand-alone policies while others add earthquake coverage as an endorsement to an existing homeowners policy.
Earthquake deductibles are almost always expressed as a percentage of your dwelling's insured value — commonly 5%, 10%, or 15%. For a home insured at $400,000, a 10% deductible means you would pay the first $40,000 of a covered earthquake claim. Understanding your deductible structure is critical before selecting a policy.
Earthquake premiums in the Mid-South vary depending on your home's age, construction type, foundation type, and proximity to known fault lines. Given the elevated seismic risk in the NMSZ region, premiums are higher than in lower-risk areas — but still represent a fraction of the financial exposure from a major seismic event. We shop multiple carriers to find the best available rate.
Sinkhole coverage depends on the specific policy form and carrier. Some earthquake policies include coverage for land movement including sinkholes; others require a separate endorsement. We review the specific policy terms with every client.
Seismic retrofitting — which typically involves anchoring a home's structure to its foundation — can reduce damage in an earthquake and may lower your insurance premium with certain carriers. Homes built before modern building codes, or those with brick or unreinforced masonry construction, are generally at higher risk.

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