Earthquake damage isn’t covered by a standard homeowners insurance policy in California. If you want financial assistance after an earthquake, you’ll need earthquake coverage.
A California Earthquake Authority (CEA) insurance policy can help pay to repair your home, replace damaged belongings, and cover temporary living expenses if your home becomes uninhabitable after a covered loss. You can't buy a policy directly from the CEA, though. It has to come through your existing home insurer.
What is the California Earthquake Authority?
The California Earthquake Authority is a not-for-profit organization providing residential earthquake insurance in California. It’s privately funded but publicly managed. The CEA was created in 1996 by the California Legislature after the Northridge earthquake caused extensive damage along a fault line Californians didn’t even know existed.
Standard homeowners insurance doesn’t cover damage caused by earthquakes, except for fire damage. A California Earthquake Authority policy provides separate coverage if you want protection for this specific peril, which is an insurance term for a cause of loss or damage.
How do you buy a CEA earthquake policy?
You can’t buy California Earthquake Authority insurance directly from the CEA. Instead, you must buy it through the same insurer that handles your homeowners, condo, renters, or mobile home policy — as long as that insurer participates in the CEA program.You can verify current participating insurance companies on the California Earthquake Authority website.
The CEA is the largest provider of residential earthquake insurance in California. However, some private insurers also offer their own earthquake coverage (not affiliated with the CEA). It may be available as an optional add-on to your home policy (called an endorsement) or an entirely separate policy.
What does a CEA earthquake policy cover?
A CEA earthquake policy includes three core coverages:
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Coverage types |
What it helps pay for |
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Repairing or rebuilding your home’s structure and some attached structures, such as an attached garage, after covered earthquake damage |
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Repairing or replacing damaged belongings, such as clothing, appliances, furniture, and electronics |
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Also called additional living expenses coverage, helps pay for hotels, meals out, and other temporary living costs if your home is unlivable while being repaired after an earthquake |
Each policy also includes $10,000 in building code upgrade coverage, which is similar to ordinance or law coverage on a homeowners policy. It helps cover the additional costs of bringing your home up to current building codes. You can increase your coverage to $20,000 or $30,000 if you want additional financial protection.
CEA policies include a $1,500 emergency repair allowance, as well. This can help pay for reasonable, necessary repairs — like boarding up broken windows or preventing further damage — needed right after an earthquake.
Note: CEA policies don't cover detached structures like garages, fences, sheds, or pools that aren't attached to your home. If you want protection for those, you'd need to look into a private, non-CEA earthquake policy instead.
What deductible options are available?
The CEA offers multiple deductible options. A deductible is the amount you pay toward a covered loss. While standard home insurance policy deductibles are typically a flat dollar amount and apply to damage caused by perils like fire and theft, earthquake insurance deductibles are often percentage-based. The amount is calculated as a percentage of your dwelling coverage amount, meaning your Coverage A policy limit. You can find this figure in your policy documents.
CEA policies offer deductibles ranging from 5% to 25%. Although choosing a higher deductible usually lowers your premium (the amount you pay for insurance coverage), it also means you’ll pay more out of pocket before your insurer starts paying its share on a covered claim.
Example: Let’s say you choose a 15% deductible. If your California home has $600,000 in dwelling coverage, you’d be responsible for the first $90,000 of your earthquake damage claim.
$600,000 x .15 = $90,000 deductible responsibility
Choosing a 5% deductible may raise your premium, but it will lower your out-of-pocket claim cost to $30,000.
$600,000 x .05 = $30,000 deductible responsibility
Note: Higher-value homes insured for over $1 million and pre-1980 homes that haven’t been seismically retrofitted typically only qualify for 15%, 20%, or 25% deductible options.
Does CEA offer different policies for different property types?
Yes. The CEA offers different policy options for homeowners, renters, mobile home owners, and condo owners. Each policy is designed for the needs of that property type.
For example, renters and condo policies typically do not include dwelling coverage because you don’t own the building. Condo owners can add dwelling coverage to cover damage to the interior of their unit, such as windows, fixtures, and interior walls. Building code upgrade coverage is included if you buy dwelling coverage.
You can also purchase optional loss assessment coverage, which can help cover your share of condo association assessments you may receive to pay for the master policy deductible or for earthquake damage repairs to the building and shared spaces.
How can you lower the cost of CEA coverage?
If you own an older California home, you can save up to 25% on CEA premiums by retrofitting your home according to California standards. To qualify, the home must:
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Be wood frame construction
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Have been built before 1980
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Have a raised or non-slab foundation
Pro tip: Homeowners may qualify for the Earthquake Brace + Bolt (EBB) grant program, which provides up to $3,000 to help cover the cost of retrofitting their home. Homeowners with an annual household income of $94,480 or less may qualify for up to $7,000.
Frequently asked questions
Is California Earthquake Authority insurance worth it?
Whether California Earthquake Authority insurance is worth it depends on your financial situation, your home’s earthquake risk, and how much damage you could afford to pay for yourself. Standard homeowners insurance doesn’t include earthquake coverage. If repairing or rebuilding your home after an earthquake would create a significant financial burden, earthquake insurance may provide valuable financial protection.
Which insurance companies offer earthquake insurance in California?
Most major insurers are participating California Earthquake Authority (CEA) members and can issue CEA policies alongside eligible residential home insurance policies. A smaller number of insurers also offer their own earthquake insurance policies outside the CEA program. You can find the latest list of participating insurers on the CEA website.
What is the only way Californians can purchase earthquake coverage?
Californians can secure earthquake insurance a few different ways. The California Earthquake Authority (CEA) offers earthquake coverage through participating residential insurance companies. While it doesn’t sell policies directly, several insurers participate in the CEA program. Alternatively, some private insurers offer non-CEA earthquake insurance as a home insurance add-on or separate policy.
