Which factor influences the cost of earthquake insurance?

The cost of earthquake insurance is significantly influenced by the structural material of the building. Buildings constructed with different materials exhibit varying levels of resilience against seismic activity. For instance, homes built with wood may have a different risk profile than those made from brick or concrete. Lighter, flexible structures tend to perform better during earthquakes compared to heavier, rigid ones, which can sustain more damage during seismic events. This performance directly affects the likelihood of claims being submitted, and therefore, the insurer's assessment of risk associated with the property.

While the other factors like location, age, and type of coverage can also impact insurance costs, the structural material specifically relates to how the building will withstand an earthquake's forces, making it a primary determinant in pricing earthquake insurance.