Earthquake Insurance

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Does homeowners insurance cover earthquakes in California?

No. The California Department of Insurance says homeowners, renters and condominium policies do not cover damage from natural disasters such as earthquakes, floods and landslides. There is one carve-out: your homeowners policy covers fire damage even when an earthquake causes the fire, so an earthquake policy does not cover fire. CDI also says that if you have homeowners insurance in California, your company must offer to sell you earthquake insurance every other year, in writing, showing the limits, deductible and premium; you have 30 days from the mailing date to accept, and not replying counts as declining. Source: CDI, Earthquake Insurance.

Where does earthquake coverage come from?

Two places. Most California earthquake policies are written by the California Earthquake Authority (CEA), which covers homeowners, mobilehome owners, condo-unit owners and renters. CDI says you cannot buy a CEA policy from CEA directly; you buy it from the participating insurer that writes your residential policy, and you must have that policy in force. A few private companies also sell earthquake policies that you can buy without your homeowners policy being with the same company. Sources: CDI, CEA. As a broker we can compare both.

What a CEA homeowners policy covers

• Dwelling — earthquake damage to the house and attached structures such as an attached garage. Deductible choices are 5%, 10%, 15%, 20% or 25%.
• Personal property — furniture, appliances, clothing and other contents.
• Loss of use — rent and additional living expenses while the home is repaired or a civil authority keeps you out. CEA says this coverage never has a deductible.
• Emergency repairs — boarding windows, removing broken glass, stopping rain from entering through quake damage; the first $1,500 carries no deductible.
• Building code upgrade — optional coverage for rebuilding to current code.

CEA says homes with a dwelling limit over $1,000,000, and pre-1980 homes on a raised foundation without a verified retrofit, can choose only the 15%, 20% or 25% deductibles. Sources: CEA, Homeowners Policy Coverages & Deductibles; building code upgrade coverage per CDI.

What earthquake insurance does not cover

CDI says that, as with most earthquake policies, CEA insurance does not cover landscaping, pools, fences, masonry or separate buildings. Earthquake policies usually do not cover damage to the land itself, and they do not repeat what your homeowners policy already pays, such as fire. Source: CDI, Earthquake Insurance. Earthquake deductibles are percentages, so ask us to turn each choice into a dollar amount for your home before you pick one.

How much does earthquake insurance cost?

CDI says your earthquake premium depends on many things, such as the location of your home, the cost to rebuild, the type of construction, the coverages selected and the deductible. CDI adds that with CEA insurance, older homes that have been properly retrofitted may receive a discount of up to 25 percent. Source: CDI, Earthquake Insurance. Your insurer’s every-other-year offer letter shows the limits, deductible and premium for the earthquake coverage it offers; we can compare that number with private earthquake options.

What we need to quote earthquake coverage

• Your current homeowners, condo or renters declarations page and the insurer that writes it.
• Year built, foundation type (slab or raised), and any seismic retrofit paperwork.
• Construction type and number of stories.
• The deductible you can realistically pay after a quake.

CEA notes that grants to help pay for a house retrofit are available under the Earthquake Brace + Bolt and Earthquake Soft-Story programs (CEA). If you live in San Joaquin County, our earthquake add-on guide for San Joaquin County covers the local side. Call (209) 670-1556 or request a quote below.