ActiveRegulator guidancePrimary sourceSource ID cdi-earthquake-insurance-guide

Earthquake Insurance (information guide, text version)

Published by California Department of Insurance. Jurisdiction CA.

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These are the only claims this record is used to carry anywhere in the library.

  • If you have homeowners insurance in California, your company must offer to sell you earthquake insurance, and it must offer this every other year.

    claim cdi-earthquake-insurance-guide#c1
  • The offer must be in writing and must tell you the amounts it covers (the limits), the deductible, and the premium.

    claim cdi-earthquake-insurance-guide#c2
  • You have 30 days to accept the offer, the 30-day period starts the date the company mails the offer to you, and if you do not reply you are rejecting the offer.

    claim cdi-earthquake-insurance-guide#c3
  • Homeowners, renters, and condominium insurance policies do not cover damage from natural disasters such as earthquakes, floods, and landslides.

    claim cdi-earthquake-insurance-guide#c4
  • California law says that both homeowners and renters insurance must cover fire damage that is caused by or follows an earthquake.

    claim cdi-earthquake-insurance-guide#c5
  • You cannot buy earthquake insurance directly from CEA; you buy it from insurance companies that are members of CEA, you must have a residential property insurance policy in place in order to get a CEA earthquake policy, and you must purchase the CEA policy from the same insurance company that carries your residential policy.

    claim cdi-earthquake-insurance-guide#c6
  • CEA offers deductibles of 5 percent, 10 percent, 15 percent, 20 percent, and 25 percent, with two exceptions: if a home is valued at over $1 million dollars, and/or if the home was built before 1980 on a raised or other non-slab type foundation and is not verified to have been seismically retrofitted. In both these cases the lowest available deductible will be 15 percent.

    claim cdi-earthquake-insurance-guide#c7
  • For CEA Coverage A dwelling coverage, the limit on your earthquake insurance is the same as the limit on your homeowners insurance dwelling coverage.

    claim cdi-earthquake-insurance-guide#c8
  • For CEA Coverage C personal property, the limit starts at $5,000 and you can increase the limit to $25,000.

    claim cdi-earthquake-insurance-guide#c9
  • For CEA Coverage D additional living expenses, the limits range from $1,500 to $100,000, and this coverage never has a deductible under CEA.

    claim cdi-earthquake-insurance-guide#c10
  • CEA condo unit policies provide up to $100,000 for the unit owner's share of certain assessments if the association imposes an assessment for covered damage caused by an earthquake.

    claim cdi-earthquake-insurance-guide#c11
  • You may be able to buy building code upgrade coverage, now up to $30,000, and CEA homeowners policies include the first $1,500 for emergency repairs with no deductible.

    claim cdi-earthquake-insurance-guide#c12
  • As with most earthquake policies, CEA insurance does not cover landscaping, pools, fences, masonry, or separate buildings.

    claim cdi-earthquake-insurance-guide#c13
  • A few companies offer stand-alone policies that are not CEA policies and that can be bought without buying homeowners insurance from the same company.

    claim cdi-earthquake-insurance-guide#c14

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Published: 2024-04-25 Effective: not applicable; guidance page

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