Insurance Policy Information
- Policy Information for existing policyholders whose earthquake policies were in force on or before 12/31/2011
- Policy information for existing policyholders whose CEA Policies were in force on or after 01/01/2012
- New to the CEA! A new product called Homeowners Choice (pdf) for policies effective July 1, 2012 – see coverage descriptions for details.
The CEA offers basic residential earthquake insurance for individually owned residential structures of not more than four units; mobilehomes; individual condominiums, townhouses, or certain other common interest development properties (collectively referred to on this Web site as “condominiums”); and renters. The CEA does not offer insurance coverage for commercial, industrial, or business properties.
CEA Policies Are Sold Only Through Participating Insurance Companies
CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims.
A Companion Policy Must Exist
The CEA issues basic residential earthquake insurance policies to any owner of a qualifying residential property as long as the owner has secured a policy of residential property insurance from a participating insurer. The residential property insurance policy is referred to as the “companion policy” to the CEA policy. The CEA policy and its companion policy share the same renewal dates. If the companion policy is terminated or cancelled, the CEA policy is cancelled as of the same date.
Five reasons to Buy a CEA Policy
If your home suffers catastrophic earthquake damage, the CEA can provide you with the strength to rebuild. With nearly $10 billion in claim-paying power, supported by the service expertise of its participating insurance companies, the CEA could cover all of its claims if the 1906 San Francisco, 1989 Loma Prieta, or 1994 Northridge earthquake reoccurred today.
- Excellent financial ratings. CEA’s financial strength is rated A- (Excellent) by A.M. Best Company (a company that rates insurance companies).
- Expert service. CEA policies are available exclusively through CEA’s participating insurance companies, which handle CEA-policy applications, renewals, billing, and claims.
- Rates based on science, not profit. By law, CEA rates must allow it to remain financially sound and to pay all its covered claims. CEA rates are based on the best available science for assessing earthquake risk and do not include any amount for profit.
- Not tied to government budgets. California’s budget issues have no impact on the CEA’s ability to pay its claims, because the CEA is a privately financed entity and receives no money through the state budget.
- Without earthquake insurance, the cost of any damage is your cost. If your CEA policy claim exceeds your deductible, you don’t actually have to pay the deductible before claim-payment eligibility is triggered.
About Earthquake Insurance
Why should I buy earthquake insurance?
Most residential insurance policies do not cover earthquake damage – a separate policy is required. Without earthquake insurance to help you recover from catastrophic damage, you will be responsible for all costs to repair or rebuild your home, to replace your personal property, and to live and eat elsewhere. Click here for more information.
What Are My Earthquake Risks?No part of California is "immune" from earthquakes—in other words, there is no “low-risk” area in California for Earthquakes—there are only areas of lower or higher risk.
In general terms, your home’s risk level depends on where you live in relation to earthquake faults, the age and type of dwelling you live in, and the soil types where you live.
Some parts of California that have not experienced earthquakes for 200 years or more might be more susceptible to earthquakes than areas that have experienced recent earthquakes. Why? Earthquake faults build up tension over long periods of time; what we experience as an earthquake occurs when that tension is suddenly released. It is theorized that relatively recent earthquake activity means that faults have released built-up tension—a lack of earthquake activity can mean that tension is still building and could be released at any time as an earthquake.
Is my residential property insurance company required to offer earthquake insurance?
Yes. By law, all residential property insurance companies must offer earthquake coverage.
My condominium association doesn’t have a Master Earthquake Policy. How will this affect me?
In condominium communities, the exterior of buildings, certain building components, and common areas are typically owned by all the condominium owners as a group. In the event of earthquake damage to such property, the association may, in accordance with its bylaws, impose an assessment against all members of the association to pay for exterior or structural repairs. Click here for more information about Loss-Assessment coverage for CEA Policyholders.
Will the government help if a big quake strikes?
Maybe. Maybe not. Depends. Assistance from the federal government may be available to assist individuals who have property damaged by earthquakes. However, California residents should know that State and Federal disaster assistance programs have specific eligibility criteria and may not always be available. In addition, Federal and State funds alone are unlikely to be enough to get your life back to its pre-disaster condition. If the President of the United States declares a disaster, the Federal Emergency Management Agency (FEMA) may only grant limited assistance to those who qualify. The Small Business Administration may make available low-interest loans to help with repairs. But you must qualify and of course, you must repay the loan.
About CEA Earthquake Insurance Policies
What types of policies are available from the CEA?
The CEA offers earthquake insurance policies to help homeowners, mobilehome owners, condominium owners, and renters recover from damaging earthquakes. Click here for more CEA Insurance Policy Information.
How many CEA policies are in force throughout California?
The CEA has more than 800,000 policies in force, representing about 70 percent of all residential earthquake insurance policies sold in California.
How can I buy CEA earthquake insurance coverage?
CEA policies are sold and serviced exclusively through CEA’s participating insurance companies. Click here for a list of Participating Insurance Companies. Call your broker, agent, or residential insurer to purchase a CEA policy or for more information about coverage and policy limitations.
Only your broker, agent or residential insurer can give you an accurate premium quote. But you can use CEA’s online Premium Calculator at www.EarthquakeAuthority.com to get an estimate.
How are CEA premiums determined?
CEA’s premiums are based on science, not profit. By law, CEA rates must be sufficient to allow the CEA to remain financially sound, to pay its covered claims. CEA rates are based on the best available science for assessing earthquake risk and do not include any amount for profit. For example, homeowners earthquake insurance premiums are calculated according to the dwelling’s insured value, location, construction-type, foundation, age, and number of stories, in addition to the policyholder’s coverage choices. Click here for more information on rates and premiums for homeowners, mobilehome owners, condominium owners, and renters.
Where does my premium dollar go?
About 83% of funds the CEA collects are dedicated to claims-paying capital, reinsurance, and the costs associated with financing. About 14% is allocated to agent commissions, and participating insurer fees. Less than 3% is devoted to CEA operating expenses.
How does the deductible work?
A CEA policy deductible is a calculation of the share of loss for which a policyholder is responsible. For claims that exceed your CEA deductible, you needn’t spend money out-of-pocket before becoming eligible for payment on your claim.
How Much Earthquake Insurance Should I Have?
Like the basic question of whether earthquake insurance is right for you, how much coverage is right for you depends on your individual circumstances. The following questions may help you decide:
- Can you afford to replace your household possessions (such as sofas, beds, TVs, furniture, refrigerators, and clothing) if they were destroyed in an earthquake? How much would they cost?
- If you have to find temporary accommodations because you cannot live in your home as the result of an earthquake, how much will you need to pay for those additional living expenses?
- If you own your home, how much home equity do you have? Can you afford to risk losing that equity if an earthquake damages or destroys the home?
- How much would it cost to rebuild your home? Do you have assets available to repair or even rebuild your home after an earthquake?
- Do you have a mortgage, second mortgage, or line of credit on your home? Can you afford to continue repaying those loans while also paying to rebuild or replace your home?
Keep in mind that the insured value of your dwelling for your earthquake policy is the same as the amount of coverage specified in your homeowners insurance policy. If you are underinsured on your homeowners policy, you are underinsured on your earthquake policy, too.
Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims.
Does the California Earthquake Authority (CEA) declare a moratorium on buying/selling earthquake insurance after an earthquake?
The CEA does not restrict buying/selling CEA insurance products after an earthquake. It is possible, however, that after an earthquake, CEA participating insurers may restrict writing of their residential-property-insurance products (e.g., dwelling fire, mobilehome, renters, or condominium-unit owners).
Under California insurance regulations, applicants who wish to purchase CEA earthquake coverage must have a residential property insurance policy in effect from a CEA participating insurer.
- If you are unable to purchase a residential-property-insurance policy from a CEA participating insurer because that insurer has imposed a restriction, you also will be unable to purchase CEA coverage until the restriction is lifted.
- Current residential property insurance policyholders of a CEA participating insurer, on the other hand, may purchase a CEA policy at any time.
After a recent earthquake, I purchased a California Earthquake Authority (CEA) policy and received a notice entitled "Information for Purchasers of New California Earthquake Authority Policies." How does the notice affect me?
It is important for you to know that certain earthquakes are not covered under your CEA earthquake policy: (1) earthquakes that occurred before the effective date of your policy and (2) earthquakes that are described in the notice entitled, “Information for Purchasers of New California Earthquake Authority Policies.”
Please read the notice—and your policy—carefully: The notice provides you with information on a recent earthquake that has an impact on the effective date of your earthquake-insurance coverage for the 360 hours following the earthquake.
What is Meant by a “Mini-policy”?
In 1996, by act of the California Legislature, a reduced-coverage, catastrophic earthquake-insurance policy became available. This so-called earthquake "mini-policy" is intended to protect a policyholder’s dwelling—to provide a "roof over your head"—while excluding coverage for costly non-essential items such as swimming pools, patios, and detached structures. The standard CEA Homeowners policy is based on and authorized under the mini-policy law. Such policies are intended to help the policyholder avoid catastrophic loss while keeping premiums more affordable for more consumers.
Can I purchase a CEA policy all by itself, without purchasing a Homeowners, Condominium or Renters policy?
No. California law requires you to have a residential insurance policy in-force with a CEA participating insurance company in order to have a CEA earthquake policy. If your residential insurance policy cancels, your CEA policy cancels at the same time. It is important to make sure your CEA policy remains in-force and is updated anytime you make a change to your residential insurance policy.
When will the new CEA Homeowners Choice product be available?
The new CEA Homeowners Choice product is available for policies beginning on or after July 1, 2012.
Is the new CEA Homeowners Choice product available for Condominium and Renter customers as well as Homeowners customers?
No, Homeowners Choice is available for owners of dwellings or manufactured homes (mobilehomes) only.
How will my existing CEA policy be affected by this new product?
There will be no impact to your existing CEA policy; however, you will be eligible to replace your current CEA Homeowners earthquake policy with a new Homeowners Choice policy at any time after July 1, 2012.
Can an existing CEA standard Homeowners earthquake insurance policyholder replace their current policy with the new Homeowners Choice policy?
Yes. The current CEA standard Homeowners earthquake policy can be cancelled and replaced with the new CEA Homeowners Choice policy. A qualifying companion Homeowners policy can have either a CEA standard Homeowners policy or a CEA Homeowners Choice policy, but cannot have both.
In condominium communities, the exterior of buildings, certain building components, and common areas are typically owned by all the condominium owners as a group. In the event of earthquake damage to such property, the association may, in accordance with its bylaws, impose an assessment against all members of the association to pay for exterior or structural repairs.
This coverage is unique to condominium owners, in that if damage from an earthquake occurs and the losses are not fully covered by the association’s master insurance policy, Loss-Assessment coverage may help you pay for your share of certain assessments the association may impose on all property owners in your condominium development.
A partial list of assessments not covered are those made to pay for the repair of non-residential structures, awnings, patio coverings, pools, spas, club houses, artistic features, or separate parking structures.
What does Loss-Assessment coverage cover?
If your condominium owners association imposes an assessment to repair damage caused by an earthquake, Loss-Assessment coverage may help pay your share of certain assessments. Your CEA policy has the details.
You may buy CEA Loss-Assessment coverage even if your condominium owners association does not have a “master” earthquake policy in force.
Why have the premiums for Loss Assessment changed over time?
Today, an increasing number of condominium homeowner associations are either buying earthquake coverage with high deductibles or electing not to purchase earthquake insurance at all.
As a result, there is a greater likelihood that homeowner associations will use unit-owner assessments to repair damage following an earthquake. This results in an increased probability of loss under a CEA policy with Loss-Assessment coverage—requiring the CEA to adjust premiums for this coverage over time. Doing so ensures that the premiums the CEA does charge are commensurate with the increased probability of loss as the number of CEA policyholders who purchase Loss-Assessment coverage continues to grow.
Policies Effective On or Before 12/31/2011
Types of Coverage Available
The CEA offers basic residential earthquake insurance for individually owned residential structures of not more than four units; mobilehomes; individual condominiums, townhouses, or certain other common interest development properties (collectively referred to on this Web site as “condominiums”); and renters. The CEA does not offer insurance coverage for commercial, industrial, or business properties.
CEA Policies Are Sold Only Through Participating Insurance CompaniesCEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims.
A Companion Policy Must ExistThe CEA issues basic residential earthquake insurance policies to any owner of a qualifying residential property as long as the owner has secured a policy of residential property insurance from a participating insurer. The residential property insurance policy is referred to as the “companion policy” to the CEA policy. The CEA policy and its companion policy share the same renewal dates. If the companion policy is terminated or cancelled, the CEA policy is cancelled as of the same date.
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Types of Coverage Available The CEA offers basic residential earthquake insurance for individually owned residential structures of not more than four units; mobilehomes; individual condominiums, townhouses, or certain other common interest development properties (collectively referred to on this Web site as “condominiums”); and renters. The CEA does not offer insurance coverage for commercial, industrial, or business properties. |
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| CEA Policies Are Sold Only Through Participating Insurance Companies | ||||||||
| CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims. | ||||||||
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A Companion Policy Must Exist
The CEA issues basic residential earthquake insurance policies to any owner of a qualifying residential property as long as the owner has secured a policy of residential property insurance from a participating insurer. The residential property insurance policy is referred to as the “companion policy” to the CEA policy. The CEA policy and its companion policy share the same renewal dates. If the companion policy is terminated or cancelled, the CEA policy is cancelled as of the same date. |
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Product Information Brochures
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Policies Effective On or After 01/01/2012
Types of Coverage Available
The CEA offers basic residential earthquake insurance for individually owned residential structures of not more than four units; mobilehomes; individual condominiums, townhouses, or certain other common interest development properties (collectively referred to on this Web site as “condominiums”); and renters. The CEA does not offer insurance coverage for commercial, industrial, or business properties.
CEA Policies Are Sold Only Through Participating Insurance Companies
CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims.
A Companion Policy Must Exist
The CEA issues basic residential earthquake insurance policies to any owner of a qualifying residential property as long as the owner has secured a policy of residential property insurance from a participating insurer. The residential property insurance policy is referred to as the “companion policy” to the CEA policy. The CEA policy and its companion policy share the same renewal dates. If the companion policy is terminated or cancelled, the CEA policy is cancelled as of the same date.
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| Homeowners/ Mobilehome Owners (English) (pdf) |
Renters (English) (pdf) |
Condominium Owners (English) (pdf) |
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| Homeowners/ Mobilehome Owners (Spanish) (pdf) |
Renters (Spanish) (pdf) |
Condominium Owners (Spanish) (pdf) |
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| Homeowners/ Mobilehome Owners (Chinese) (pdf) |
Renters (Chinese) (pdf) |
Condominium Owners (Chinese) (pdf) |
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Note: If printing these pdfs, you may need to adjust your printer settings to accommodate the layout.
Policy Specimens
Homeowner
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The CEA homeowners policy is designed to help get you back into your home after an earthquake. The CEA base-limits policy for homeowners includes:
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| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. |
 Homeowners Brochure 
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Coverage
Dwelling Coverage (Coverage A)
Dwelling coverage helps protect the investment you have made in your home. It will help pay to repair or, (up to the policy limit) replace, an insured home when structural damage exceeds the policy deductible. You may select a 10% or 15% deductible for your Dwelling coverage.
The insured value of your home, as stated on the declarations page of your companion homeowners insurance policy, determines the Dwelling-coverage limit of your CEA earthquake policy. If your home's insured value changes in your homeowners policy, the insured value for your earthquake coverage will change, too, and that will affect your earthquake-policy premium.
Personal Property Coverage (Coverage C)Personal Property coverage protects many items in the typical home, including furniture, TVs, audio and video equipment, household appliances, bedding, and clothing.
A base policy provides up to $5,000 to replace personal property, but you can increase your Personal Property coverage to as much as $100,000.
| Personal Property Coverage: Increased-Limit Options | ||||
| Base Coverage |
Option 1 |
Option 2 |
Option 3 |
Option 4 |
| $5,000 | $25,000 | $50,000 | $75,000 | $100,000 |
Additional Living Expense/Loss of Use Coverage (Coverage D)
If damage from an earthquake prevents you from living in your home, your CEA policy may pay for necessary increases in living expenses you incur to maintain your normal standard of living.
CEA Additional Living Expense/Loss of Use coverage on a property you own and rent to tenants can help protect your rental income, to the limit of that coverage.
A base policy provides $1,500 of Additional Living Expense coverage or you can increase that coverage to as much as $15,000.
| Additional Living Expense Coverage: Increased-Limit Options | ||
| Base Coverage |
Option 1 |
Option 2 |
| $1,500 | $10,000 | $15,000 |
Additional Coverages
Limited Building Code Upgrade
In most California communities, repairing or rebuilding a home after an earthquake must be done according to current building codes. In addition to providing funds for repairing or replacing your home, the CEA base policy includes an additional $10,000 in Building Code Upgrade coverage.
Option to Increase Building Code Upgrade CoverageFor policies that renew or become effective on or after July 1, 2006, homeowners can choose to increase Building Code Upgrade coverage by an additional $10,000, for a total Building Code Upgrade coverage limit of $20,000.
Items Not CoveredDwelling-Related Items
Your CEA policy excludes some items from dwelling coverage. A partial list of items that are not covered includes:
- Detached garages and most other structures that are not part of the dwelling
- Land damage (other than $10,000 in coverage for land stabilization)
- Swimming pools and spas
- Awnings and patio coverings
- Fences, landscaping, and irrigation systems
- Antennas and satellite dishes
- Patios and decks
- Walkways and driveways not needed for pedestrian or disabled access to your home
- Certain decorative or artistic items such as mirrors, chandeliers, stained glass, or mosaics
A partial list of personal property items not covered by your CEA policy includes:
- Animals, birds, or fish
- Artwork, photographs, and ceramics
- Motor vehicles (such as cars, trucks, and motorcycles), riding lawn mowers, trailers, golf carts, and watercraft
- Glassware, crystal, porcelain, and china
- Spas and hot tubs
Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company.
Coverage SublimitsSublimits - Dwelling Coverage
Once damage to your dwelling has exceeded your CEA policy’s deductible, the policy covers reasonable emergency repairs in an amount up to 5% of the insured value of the home as part of the dwelling limit of insurance.
As part of the dwelling limit of insurance, your CEA policy will pay up to $10,000, including engineering costs, to replace, rebuild, stabilize, or otherwise restore land you own that is necssary to support your home. The policy does not provide any other coverage for land.
If your dwelling has one or more chimneys damaged by an earthquake, your CEA policy includes a single sublimit of $5,000 to repair or replace all dwelling chimneys.
Sublimits - Personal Property CoveragePersonal Property coverage sublimits include the following:
- $1,000 for damage to electronic data-processing equipment such as computers and printers
- $250 for money, bank notes, coins, and medals
- $300 for business property
Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company.
Deductibles
Eligible Structures
CEA homeowner policies are intended for individually-owned structures of one to four dwelling units that are used exclusively for residential purposes. The dwelling structure need not be owner-occupied, and only dwelling structures in California are eligible for coverage—buildings used for any commercial, industrial, or business purpose are not eligible for CEA earthquake coverage.
Structures other than the eligible dwellings described above, including detached garages, outbuildings and other structures, are not eligible for CEA coverage.
Multiple Structures on One PropertyThe CEA will not cover more than one residential structure on one CEA policy. If more than one dwelling is located on a property, the secondary dwellings may be eligible for CEA coverage if written under separate policies—talk to your homeowners insurance agent or company for details.
Rates & Premiums
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How Rates are Determined The CEA is required by law to use the best science available, and is expressly permitted by law to use earthquake computer modeling, to establish actuarially sound rates. |
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Identifying Seismic Risk
To determine seismic risk for an area, scientists and engineers at the computer modeling firm under contract to the CEA incorporate data from a variety of highly respected sources including the United States Geological Survey (USGS) and the California Geological Survey. Criteria used to assess seismic risk for CEA rating territories include location and proximity to earthquake faults, other geological factors that may affect how structures respond to earthquakes, and soil type. |
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Computer Modeling
Computer modeling uses scientific and engineering data and actuarial techniques to calculate anticipated losses from earthquakes. Taking characteristics of the CEA portfolio of earthquake-insurance policies, an earthquake model simulates earthquakes of varying magnitudes, in various locations throughout California. The CEA's policy inventory is the most comprehensive database ever developed for earthquake ratemaking. Modeling potential loss scenarios allows the CEA to calculate the claim-paying capacity it must maintain and helps determine appropriate earthquake-insurance rates. The CEA rating methodology is based on the best available scientific, engineering, and actuarial expertise and has been approved and accepted by the CEA Governing Board and the California Department of Insurance. |
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Rating Territories
Based on scientifically modeled seismic risk, the CEA has established actuarially sound “rating territories,” grouping together those ZIP Codes that present reasonably similar seismic risk. Although the risk might not be exactly the same for each ZIP Code in a rating territory, the risks are similar enough to justify the territorial grouping. Policyholders who live in rating territories close to an earthquake fault or have predominantly poor soil can expect higher rates than those on firm soil or farther from faults. |
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Age and Type of Construction
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| How CEA Premiums are Calculated |
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Rating factors, like the location, age, and type of construction of your home, determine your rate, but the amount and types of CEA coverage you choose determine your premium, the amount you pay each year for your earthquake policy. The factors listed below help to determine your premium. |
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| Only a CEA participating insurance company or its agent can give you an exact CEA-premium quote, but to get a good estimate of the cost, use our handy premium calculator. |
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Retrofit Discount
The California Insurance Code states that CEA policyholders who have retrofitted their homes to withstand earthquake shake damage according to standards and to the extent set by the CEA Governing Board receive a 5% premium discount. |
| The CEA applies a 5% premium discount to dwellings that meet the following requirements: built before 1979, is of a wood-frame construction-type, the frame is tied to the foundation, has cripple walls braced with plywood or its equivalent, and the water heater is secured to the building frame. The retrofit discount is not available for houses built on concrete-slab foundations. |
Purchasing or Changing Coverage
| CEA Policies Are Sold Only Through Participating Insurance Companies |
| CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims. |
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Establishing or Terminating Earthquake
Coverage During a Coverage Period The CEA requires its participating insurance companies to offer their California policyholders the option of adding or deleting earthquake coverage at any time during the coverage period of the companion residential insurance policy. If earthquake coverage is added during that coverage period, the earthquake-insurance premium is pro-rated, that is, the premium due is based on the number of days remaining until the companion policy's renewal date. Similarly, if earthquake coverage is terminated, the policyholder is entitled to a earthquake-premium refund for the days in the coverage period the coverage will not be in effect. Keep in mind that whenever a CEA policy is terminated, for whatever reason, an entirely new policy must be established for coverage to resume. Existing CEA policies cannot be transferred from one participating insurance company to another. |
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Download a specimen copy* of the CEA
Homeowners Policy (PDF) |
| * This link contains only a specimen policy form. Specimen policy forms are not actual insurance contracts or policies but are provided solely to provide information regarding the language used in CEA policy forms. No insurance coverage is provided under any form copied or printed from these links. Insurance coverage is provided only under actual insurance policies duly issued by the CEA through its participating insurers, using approved procedures and only upon the approval of written applications for coverage and the payment of premium. |
Mobilehome
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The CEA mobilehome owners policy is designed to help get you back into your home after an earthquake. The CEA base-limits policy for mobilehome owners includes:
You may select either a 10% or 15% deductible on your Dwelling coverage, and CEA’s increased-limit options allow you to increase Personal Property coverage to as much as $100,000 and Additional Living Expense/Loss of Use coverage to as much as $15,000. |
| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. |
 Mobilehome Owners Brochure
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Coverage
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Dwelling Coverage (Coverage A)
Dwelling coverage helps protect the investment you have made in your mobilehome. It will help pay to repair or, (up to the policy limit) replace, an insured mobilehome when structural damage exceeds the policy deductible. You may select a 10% or 15% deductible for your Dwelling coverage. The insured value of your mobilehome, as stated on the declarations page of your companion homeowners insurance policy, determines the Dwelling-coverage limit of your CEA earthquake policy. If your mobilehome's insured value changes in your homeowners policy, the insured value for your earthquake coverage will change, too, and that will affect your earthquake-policy premium. |
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Personal Property Coverage (Coverage C)
Personal Property coverage protects many items in the typical home, including furniture, TVs, audio and video equipment, household appliances, bedding, and clothing. A base policy provides up to $5,000 to replace personal property, but you can increase your Personal Property coverage to as much as $100,000. |
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Additional Living Expense/Loss of Use Coverage
(Coverage D)
If damage from an earthquake prevents you from living in your home, your CEA policy may pay for necessary increases in living expenses you incur to maintain your normal standard of living. |
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| CEA Additional Living Expense/Loss of Use coverage on a property you own and rent to tenants can help protect your rental income, to the limit of that coverage. | |||||||||||||||
| A base policy provides $1,500 of Additional Living Expense coverage or you can increase that coverage to as much as $25,000. | |||||||||||||||
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Additional Coverages
Limited Building Code Upgrade In most California communities, repairing or rebuilding a home after an earthquake must be done according to current building codes. In addition to providing funds for repairing or replacing your home, the CEA base policy includes an additional $10,000 in Building Code Upgrade coverage. |
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Dwelling-Related Items
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Personal Property
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Sublimits - Dwelling Coverage Once damage to your dwelling has exceeded your CEA policy’s deductible, the policy covers reasonable emergency repairs in an amount up to 5% of the insured value of the home as part of the dwelling limit of insurance. As part of the dwelling limit of insurance, your CEA policy will pay up to $10,000, including engineering costs, to replace, rebuild, stabilize, or otherwise restore land you own that is necssary to support your home. The policy does not provide any other coverage for land. |
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Sublimits - Personal Property Coverage
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Deductibles
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CEA earthquake insurance is intended to
protect your assets in the event of catastrophic loss—in order to receive benefits
from your CEA earthquake coverage, your claim must exceed set deductibles.
CEA policy deductibles are a calculation of the share of loss for which a policyholder is responsible—it is not an amount of money a policyholder must have or pay before receiving money from the CEA. |
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Deductible for Dwelling Coverage
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A CEA dwelling deductible is either
10% or 15% of the insured value of the dwelling. This table illustrates
how to calculate a CEA dwelling deductible, using an insured value of $100,000.
(In calculating your deductible, please use your own dwelling's insured value, as
stated on your CEA policy's declarations page.)
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|
Only covered damage to the dwelling counts
toward meeting the deductible. This means that, regardless of the amount of
damage to your home's contents (or "personal property"), structural earthquake damage
to your dwelling must exceed the deductible before a CEA policy would be available
to pay any loss to the dwelling or any loss to personal property. Certain
other conditions may apply to your loss—please read your policy carefully. Once structural dwelling damage exceeds the deductible, the CEA will authorize payment for the insured loss, up to the insured value of your dwelling. You do not have to pay the deductible before the CEA pays for earthquake damage to your home—the deductible is only used to calculate the payable portion of your claim; you don't have to make actual out-of-pocket expenditures before you receive payments on your CEA claim. |
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Deductible for Personal Property Coverage
Damage to personal property is not covered unless the dwelling deductible is met. If the dwelling deductible is met, no additional deductible applies for your Personal Property coverage. |
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|
Deductible for Additional Living Expense/Loss
of Use Coverage
There is no deductible for Additional Living Expense/Loss of Use coverage. |
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Rates & Premiums
|
How Rates are Determined The CEA is required by law to use the best science available, and is expressly permitted by law to use earthquake computer modeling, to establish actuarially sound rates. |
|
Identifying Seismic Risk
To determine seismic risk for an area, scientists and engineers at the computer modeling firm under contract to the CEA incorporate data from a variety of highly respected sources including the United States Geological Survey (USGS) and the California Geological Survey. Criteria used to assess seismic risk for CEA rating territories include location and proximity to earthquake faults, other geological factors that may affect how structures respond to earthquakes, and soil type. |
|
Computer Modeling
Computer modeling uses scientific and engineering data and actuarial techniques to calculate anticipated losses from earthquakes. Taking characteristics of the CEA portfolio of earthquake-insurance policies, an earthquake model simulates earthquakes of varying magnitudes, in various locations throughout California. The CEA's policy inventory is the most comprehensive database ever developed for earthquake ratemaking. Modeling potential loss scenarios allows the CEA to calculate the claim-paying capacity it must maintain and helps determine appropriate earthquake-insurance rates. The CEA rating methodology is based on the best available scientific, engineering, and actuarial expertise and has been approved and accepted by the CEA Governing Board and the California Department of Insurance. |
|
Rating Territories
Based on scientifically modeled seismic risk, the CEA has established actuarially sound “rating territories,” grouping together those ZIP Codes that present reasonably similar seismic risk. Although the risk might not be exactly the same for each ZIP Code in a rating territory, the risks are similar enough to justify the territorial grouping. Policyholders who live in rating territories close to an earthquake fault or have predominantly poor soil can expect higher rates than those on firm soil or farther from faults. |
| How CEA Premiums are Calculated |
|
Rating factors, like the location of your residence, determine your rate, but the amount and types of CEA coverage, and type of CEA Homeowner policy you choose determine your premium, (the amount you pay) each year for your earthquake policy. The factors listed below help to determine your premium. |
Note: Mobilehomes that have been retrofitted may be entitled to a 5% premium discount. |
| Only a CEA participating insurance company or its agent can give you an exact CEA-premium quote, but to get a good estimate of the cost, use our handy premium calculator. |
|
What Is a Modular Home versus a Mobilehome
or Manufactured Home?
Though built in sections at a factory, modular homes are built to conform to all building codes at their destinations. They are generally placed on a foundation, then joined and completed by a local builder. Mobilehomes (or manufactured homes) are built to quality-assurance standards administered by the U.S. Department of Housing and Urban Development, rather than to building codes at their destinations. Mobilehomes are usually built on a non-removable steel chassis. Building inspectors check the work done locally (such as electrical hook-up) but are not required to approve the structure. The CEA rates modular homes in the same manner as site-built homes. CEA participating insurance companies may rate a mobilehome as a dwelling if the mobilehome is permanently attached to a foundation so that property taxes are assessed. |
|
Retrofit Discount
|
Purchasing or Changing Coverage
| CEA Policies Are Sold Only Through Participating Insurance Companies |
| CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims. |
|
Establishing or Terminating Earthquake
Coverage During a Coverage Period The CEA requires its participating insurance companies to offer their California policyholders the option of adding or deleting earthquake coverage at any time during the coverage period of the companion residential insurance policy. If earthquake coverage is added during that coverage period, the earthquake-insurance premium is pro-rated, that is, the premium due is based on the number of days remaining until the companion policy's renewal date. Similarly, if earthquake coverage is terminated, the policyholder is entitled to a earthquake-premium refund for the days in the coverage period the coverage will not be in effect. Keep in mind that whenever a CEA policy is terminated, for whatever reason, an entirely new policy must be established for coverage to resume. Existing CEA policies cannot be transferred from one participating insurance company to another. |
| Only a CEA participating insurance company or its agent can give you an exact CEA-premium quote, but to get a good estimate of the cost, use our handy premium calculator. |
|
Download a specimen copy* of the CEA
Homeowners Policy (PDF) |
| * This link contains only a specimen policy form. Specimen policy forms are not actual insurance contracts or policies but are provided solely to provide information regarding the language used in CEA policy forms. No insurance coverage is provided under any form copied or printed from these links. Insurance coverage is provided only under actual insurance policies duly issued by the CEA through its participating insurers, using approved procedures and only upon the approval of written applications for coverage and the payment of premium. |
Renter
|
Whether you rent an apartment, house, mobilehome, or condominium, CEA renters policies are designed to replace your possessions and help you get on with your life after an earthquake. The CEA base-limits renters policy includes the following coverages:
|
| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. |
|
Who Is Eligible for a CEA Renters Policy? CEA renters policies are intended for people who rent their place of residence and want to protect their assets and financial security against earthquake risk. A landlord who offers for rent a single family dwelling, units within a residential structure of 1–4 units, a mobilehome, or an individual condominium unit may be eligible for a CEA homeowner, mobilehome owner, or condominium owner policy but is not eligible for a CEA renters policy. |
 Renters Brochure
|
Coverage
|
Personal Property Coverage (Coverage C)
Personal Property coverage protects many items in the typical home, including furniture, TVs, audio and video equipment, household appliances, bedding, and clothing. A base policy provides up to $5,000 to replace personal property, but you can increase your Personal Property coverage to as much as $100,000. |
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Additional Living Expense/Loss of Use Coverage
(Coverage D)
If damage from an earthquake prevents you from living in your home, your CEA policy may pay for necessary increases in living expenses you incur to maintain your normal standard of living. |
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| A base policy provides $1,500 of Additional Living Expense coverage or you can increase that coverage to as much as $15,000. | |||||||||||||||
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| Items Not Covered | |||||||||||||||
|
Personal Property
|
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| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. | |||||||||||||||
| Coverage Sublimits | |||||||||||||||
|
Sublimits - Personal Property Coverage
|
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| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. | |||||||||||||||
Deductibles
|
CEA earthquake insurance is intended to
protect your assets in the event of catastrophic loss—in order to receive benefits
from your CEA earthquake coverage, your claim must exceed set deductibles.
CEA policy deductibles are a calculation of the share of loss for which a policyholder is responsible—it is not an amount of money a policyholder must have or pay before receiving money from the CEA. |
|
Deductible for Personal Property Coverage
The deductible is $750, no matter what limit of Personal Property coverage you select. |
|
Deductible for Additional Living Expense/Loss
of Use Coverage
There is no deductible for Additional Living Expense/Loss of Use coverage. |
Rates & Premiums
|
How Rates are Determined The CEA is required by law to use the best science available, and is expressly permitted by law to use earthquake computer modeling, to establish actuarially sound rates. |
|
Identifying Seismic Risk
To determine seismic risk for an area, scientists and engineers at the computer modeling firm under contract to the CEA incorporate data from a variety of highly respected sources including the United States Geological Survey (USGS) and the California Geological Survey. Criteria used to assess seismic risk for CEA rating territories include location and proximity to earthquake faults, other geological factors that may affect how structures respond to earthquakes, and soil type. |
|
Computer Modeling
Computer modeling uses scientific and engineering data and actuarial techniques to calculate anticipated losses from earthquakes. Taking characteristics of the CEA portfolio of earthquake-insurance policies, an earthquake model simulates earthquakes of varying magnitudes, in various locations throughout California. The CEA's policy inventory is the most comprehensive database ever developed for earthquake ratemaking. Modeling potential loss scenarios allows the CEA to calculate the claim-paying capacity it must maintain and helps determine appropriate earthquake-insurance rates. The CEA rating methodology is based on the best available scientific, engineering, and actuarial expertise and has been approved and accepted by the CEA Governing Board and the California Department of Insurance. |
|
Rating Territories
Based on scientifically modeled seismic risk, the CEA has established actuarially sound “rating territories,” grouping together those ZIP Codes that present reasonably similar seismic risk. Although the risk might not be exactly the same for each ZIP Code in a rating territory, the risks are similar enough to justify the territorial grouping. Policyholders who live in rating territories close to an earthquake fault or have predominantly poor soil can expect higher rates than those on firm soil or farther from faults. |
| How CEA Premiums are Calculated |
|
Rating factors, like the location of your residence, determine your rate, but the amount and types of CEA coverage you choose determine your premium, the amount you pay each year for your earthquake policy. The factors listed below help to determine your premium. |
|
| Only a CEA participating insurance company or its agent can give you an exact CEA-premium quote, but to get a good estimate of the cost, use our handy premium calculator. |
|
Retrofit Discount
Condominium owners and renters are not eligible for the CEA retrofit discount. |
Purchasing or Changing Coverage
| CEA Policies Are Sold Only Through Participating Insurance Companies |
| CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims. |
|
Establishing or Terminating Earthquake
Coverage During a Coverage Period The CEA requires its participating insurance companies to offer their California policyholders the option of adding or deleting earthquake coverage at any time during the coverage period of the companion residential insurance policy. If earthquake coverage is added during that coverage period, the earthquake-insurance premium is pro-rated, that is, the premium due is based on the number of days remaining until the companion policy's renewal date. Similarly, if earthquake coverage is terminated, the policyholder is entitled to a earthquake-premium refund for the days in the coverage period the coverage will not be in effect. Keep in mind that whenever a CEA policy is terminated, for whatever reason, an entirely new policy must be established for coverage to resume. Existing CEA policies cannot be transferred from one participating insurance company to another. |
|
Download a specimen copy* of the CEA
Renters Policy (PDF).
|
| * This link contains only a specimen policy form. Specimen policy forms are not actual insurance contracts or policies but are provided solely to provide information regarding the language used in CEA policy forms. No insurance coverage is provided under any form copied or printed from these links. Insurance coverage is provided only under actual insurance policies duly issued by the CEA through its participating insurers, using approved procedures and only upon the approval of written applications for coverage and the payment of premium. |
Condominium
|
The CEA condominium-owner policy (for individual condominiums, townhouses, or other common-interest-development properties) is designed to help get you back into your home after an earthquake. When you buy a CEA base-limits condominium policy, you have the choice of three coverage options which may be purchased separately or in combination. The following are the coverage and limit options available:
|
| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. |
 Condominium Owners Brochure
|
Coverage
|
Building Property Coverage (Coverage A)
When damage exceeds the policy’s Building Property coverage deductible of $3,750, this coverage provides up to $25,000 to repair and replace certain interior elements and improvements and would also cover utility equipment such as pipes and wiring for which you alone are responsible under your homeowners association's governing documents. The coverage does not pay to repair or replace parts of the condominium development that are commonly-owned or are otherwise the responsibility of your homeowners association. Examples of covered interior elements and improvements are built-in appliances, fixtures, and wall-to-wall carpeting. When you purchase earthquake insurance for your condominium, you should confirm which utility and similar equipment are your legal responsibility to repair and maintain. |
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|
Personal Property Coverage (Coverage C)
Personal Property coverage protects many items in the typical home including such items as furniture, TVs, audio and video equipment, household appliances, bedding, and clothing. If you choose Personal Property coverage, base coverage provides up to $5,000 to replace personal property, but you can increase your coverage up to as much as $100,000. By choosing to include Personal Property coverage in your policy, you will automatically receive Additional Living Expense/Loss of Use coverage of $1,500. |
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|
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|
Additional Living Expense/Loss of Use Coverage
(Coverage D)
If damage from an earthquake prevents you from living in your home, your CEA policy may pay for necessary increases in living expenses you incur to maintain your normal standard of living. |
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| CEA Additional Living Expense/Loss of Use coverage on a property you own and rent to tenants can help protect your rental income, to the limit of that coverage. | |||||||||||||||
| You can purchase a base limit of $1,500 of Additional Living Expense coverage or increase that coverage to as much as $15,000. If you choose to include Additional Living Expense coverage as part of your policy, you will automatically receive base Personal Property coverage of $5,000 as well. | |||||||||||||||
|
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|
Loss Assessment Coverage (Coverage E)
In condominium communities, building exteriors, certain building components, and common areas are typically owned by the homeowners association or by all of the condominium owners as a group. In the event of earthquake damage to such property, the association, in accordance with its governing documents, may impose an assessment against members of the association to pay for repairs. Loss Assessment coverage will help you pay your share of certain assessments the association may impose. If the fair market value of your condominium is greater than $135,000, you can purchase $50,000 or $75,000 in Loss Assessment coverage; if the fair market value is $135,000 or less, you can choose to purchase either $25,000, $50,000 or $75,000 in coverage. |
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|
Additional Coverage
Limited Building Code Upgrade Coverage In most California communities, repairing or rebuilding a home after an earthquake must be done according to current building codes. In addition to the $25,000 Building Property coverage limits, the Building Property coverage provides an additional $10,000 in coverage for the cost of making upgrades required by current building codes. |
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| Items Not Covered | |||||||||||||||
|
Building Property and Loss Assessment
|
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|
Personal Property
|
|||||||||||||||
| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. | |||||||||||||||
| Coverage Sublimits | |||||||||||||||
|
Sublimits - Personal Property Coverage
|
|||||||||||||||
| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. | |||||||||||||||
Deductibles
|
CEA earthquake insurance is intended to
protect your assets in the event of catastrophic loss—in order to receive benefits
from your CEA earthquake coverage, your claim must exceed set deductibles.
CEA policy deductibles are a calculation of the share of loss for which a policyholder is responsible—it is not an amount of money a policyholder must have or pay before receiving money from the CEA. |
|
Deductible for Building Property Coverage
Building Property coverage provides up to $25,000 to repair or replace interior structural components when damage exceeds the policy’s $3,750 (15%) deductible. |
|
Deductible for Personal Property Coverage
The deductible is $750, no matter what limit of Personal Property coverage you select. |
|
Deductible for Additional Living Expense/Loss
of Use Coverage
There is no deductible for Additional Living Expense/Loss of Use coverage. |
|
Deductible for Loss Assessment Coverage
Loss Assessment coverage has a deductible of 15% of the total Loss Assessment coverage amount. |
Rates & Premiums
|
How Rates are Determined The CEA is required by law to use the best science available, and is expressly permitted by law to use earthquake computer modeling, to establish actuarially sound rates. |
|
Identifying Seismic Risk
To determine seismic risk for an area, scientists and engineers at the computer modeling firm under contract to the CEA incorporate data from a variety of highly respected sources including the United States Geological Survey (USGS) and the California Geological Survey. Criteria used to assess seismic risk for CEA rating territories include location and proximity to earthquake faults, other geological factors that may affect how structures respond to earthquakes, and soil type. |
|
Computer Modeling
Computer modeling uses scientific and engineering data and actuarial techniques to calculate anticipated losses from earthquakes. Taking characteristics of the CEA portfolio of earthquake-insurance policies, an earthquake model simulates earthquakes of varying magnitudes, in various locations throughout California. The CEA's policy inventory is the most comprehensive database ever developed for earthquake ratemaking. Modeling potential loss scenarios allows the CEA to calculate the claim-paying capacity it must maintain and helps determine appropriate earthquake-insurance rates. The CEA rating methodology is based on the best available scientific, engineering, and actuarial expertise and has been approved and accepted by the CEA Governing Board and the California Department of Insurance. |
|
Rating Territories
Based on scientifically modeled seismic risk, the CEA has established actuarially sound “rating territories,” grouping together those ZIP Codes that present reasonably similar seismic risk. Although the risk might not be exactly the same for each ZIP Code in a rating territory, the risks are similar enough to justify the territorial grouping. Policyholders who live in rating territories close to an earthquake fault or have predominantly poor soil can expect higher rates than those on firm soil or farther from faults. |
| How CEA Premiums are Calculated |
|
Rating factors, like the location of your residence, determine your rate, but the amount and types of CEA coverage you choose determine your premium, the amount you pay each year for your earthquake policy. The factors listed below help to determine your premium. |
|
| Only a CEA participating insurance company or its agent can give you an exact CEA-premium quote, but to get a good estimate of the cost, use our handy premium calculator. |
|
Has Your Homeowners Association Purchased
a Master Policy for Earthquake?
A master policy of earthquake insurance, purchased by a condominium owner’s homeowners association (HOA), may provide condominium owners with a significant layer of protection from earthquake damage and loss. (Such policies are considered commercial policies and are not available through the CEA.) It is important for you to know if your HOA has a master policy of earthquake insurance in place and, if it does, to become familiar with its scope of coverage, exclusions, and deductibles. If your condominium development suffers earthquake damage but your HOA has no earthquake coverage, individual condominium owners might have to pay assessments levied by the HOA to repair or rebuild condominium structures. If an HOA master earthquake policy is in place, it still may have deductibles for which owners of individual units can be assessed. |
|
Retrofit Discount
Condominium owners and renters are not eligible for the CEA retrofit discount. |
Purchasing or Changing Coverage
| CEA Policies Are Sold Only Through Participating Insurance Companies |
| CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims. |
|
Establishing or Terminating Earthquake
Coverage During a Coverage Period The CEA requires its participating insurance companies to offer their California policyholders the option of adding or deleting earthquake coverage at any time during the coverage period of the companion residential insurance policy. If earthquake coverage is added during that coverage period, the earthquake-insurance premium is pro-rated, that is, the premium due is based on the number of days remaining until the companion policy's renewal date. Similarly, if earthquake coverage is terminated, the policyholder is entitled to a earthquake-premium refund for the days in the coverage period the coverage will not be in effect. Keep in mind that whenever a CEA policy is terminated, for whatever reason, an entirely new policy must be established for coverage to resume. Existing CEA policies cannot be transferred from one participating insurance company to another. |
|
Download a specimen copy* of the CEA Condominium
Owners Policy.
|
| * This link contains only a specimen policy form. Specimen policy forms are not actual insurance contracts or policies but are provided solely to provide information regarding the language used in CEA policy forms. No insurance coverage is provided under any form copied or printed from these links. Insurance coverage is provided only under actual insurance policies duly issued by the CEA through its participating insurers, using approved procedures and only upon the approval of written applications for coverage and the payment of premium. |
Homeowners
Earthquake insurance from the CEA is designed to help pay to repair or rebuild your home if it suffers significant damage from an earthquake.
The CEA offers either a Homeowners or a Homeowners Choice policy – each has multiple coverage levels and options, to help you create the right policy for your insurance needs. The CEA’s standard Homeowners earthquake policy includes all of the following coverages:
- Dwelling (Coverage A)– the coverage limit is the same as the insured value stated on your companion homeowner policy. You may select either a 10% or 15% deductible.
- Personal Property (Coverage C) – with coverage limits ranging from $5,000 to $100,000.
- Loss of Use/Additional Living Expense (Coverage D) – including limits of coverage between $1,500 and $25,000.
Beginning July 1, 2012, the CEA’s new Homeowners Choice policy is available which gives you coverage options:
- Buy only Dwelling (Coverage A) and Extensions to Dwelling (Coverage B), or
- add Personal Property (Coverage C), or
- add Loss of Use (Coverage D), or add both.
It’s your choice, so you can manage your own residential insurance coverage… and premium.
For more information about Homeowners Choice, click here.
CEA policies contain exclusions and special limits of coverage – read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Website, please contact your insurance broker, agent, or residential insurer.
|
|
|
| Homeowners/Mobilehome Owners (English) (pdf) |
Homeowners/Mobilehome Owners (Spanish) (pdf) |
Homeowners/Mobilehome Owners (Chinese) (pdf) |
Homeowners Coverage
Dwelling Coverage (Coverage A) and Extensions to Dwelling (Coverage B)
The coverage for your home (Dwelling Coverage A) and other structures (Extensions to Dwelling Coverage B) are insured as a combined single limit of coverage. The limit of coverage must be equal to the Dwelling (Coverage A) limit on your primary homeowners insurance policy.
Dwelling Coverage (Coverage A)
Dwelling coverage helps protect the investment you have made in your home. It will help pay to repair or, (up to the policy limit) replace, an insured home when structural damage exceeds the dwelling deductible. You may select a 10% or a 15% deductible for your Dwelling coverage, and dwelling coverage is required for both our standard Homeowners policy and our Homeowners Choice policy.
The insured value of your home, as stated on the declarations page of your companion homeowners insurance policy, determines the Dwelling-coverage limit of your CEA earthquake policy. If your home’s value changes in your homeowners policy, the insured value of your earthquake coverage will change too, and that will affect your earthquake policy premium.
Extensions to Dwelling Coverage (Coverage B)
Extensions to Dwelling coverage will help pay to repair or replace the following items:- Equipment and utility structures, such as electrical or water lines, owned by you and on your property that impact the habitability of your home;
- portions of a walkway, driveway, deck or patio that is necessary for pedestrian entry or exit to your home; and
- bulkheads, piers, retaining walls and masonry fences essential to the stability of your home.
Extensions to Dwelling (Coverage B) coverage is included in your dwelling-coverage limit and is paid when your earthquake damage to your home exceeds your dwelling deductible.
Personal-Property Coverage (Coverage C)
Personal-Property coverage protects many items in a typical home, including furniture, TVs, audio and video equipment, household appliances, bedding and clothing. Both our standard Homeowners policy and our Homeowners Choice policy offer coverage limits between $5,000 and $100,000.
- After covered damage to your home exceeds the dwelling deductible, CEA’s standard Homeowners policy replaces your covered personal property up to your Coverage C limit.
- CEA’s Homeowners Choice policy offers the option to select or decline personal-property coverage. With Homeowners Choice personal property Coverage C, you can choose a deductible of 10% or 15% of the Coverage C limit. The Coverage C deductible is completely waived if covered damage to your home exceeds your dwelling deductible.
|
Coverage |
Homeowners Policy |
Homeowners Choice Policy* |
Coverage Limit Options |
|
|
Included Coverage |
Optional Coverage |
|
|
Personal Property (Coverage C) |
Personal property is paid after damage to your home exceeds the dwelling deductible |
Deductible is 10% or 15% of your Coverage C limit. Your personal-property deductible is completely waived if covered damage to your home exceeds your dwelling deductible |
$5,000 |
|
$25,000 |
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$50,000 |
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|
$75,000 |
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|
$100,000 |
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|
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|
*Available for policyholders with new and renewal policies effective on or after July 1, 2012. |
|||
Loss of Use/Additional Living Expense Coverage (Coverage D)
If damage from an earthquake prevents you from living in your home, or if a civil authority prohibits you from occupying your home after an earthquake, your CEA policy may pay for necessary increases in living expenses you incur to maintain your normal standard of living. CEA’s Loss-of-Use/Additional Living Expense coverage on a property you own and rent to tenants can help protect your rental income, up to your Coverage D limit.
- CEA’s standard Homeowners policy provides Loss-of-Use coverage if you cannot live in your home after an earthquake.
- CEA’s Homeowners Choice policy offers the option to select or decline Loss-of-Use coverage.
- Under either policy, Loss-of-Use coverage never has a deductible.
|
Coverage |
Homeowners Policy |
Homeowners Choice Policy* |
Coverage Limit Options |
|
|
Included Coverage |
Optional Coverage |
|
|
Loss of Use (Coverage D) |
No Deductible |
No Deductible |
$1,500 |
|
$10,000 |
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|
$15,000 |
|||
|
$25,000* |
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|
|
|||
|
*Available for policyholders with new and renewal policies effective on or after January 1, 2012. |
|||
Additional Coverages
Limited Building Code Upgrade
In most California communities, repairing or rebuilding a home after an earthquake must be done according to current building codes. In addition to providing funds for repairing or replacing your home, both the standard Homeowners and Homeowners Choice policies include an additional $10,000 in Building Code Upgrade coverage.
Option to Increase Building Code Upgrade Coverage
Homeowners can choose to increase Building Code Upgrade coverage by an additional $10,000, for a total Building Code Upgrade coverage limit of $20,000.
Items Not Covered
Dwelling-Related Items
Both the standard Homeowners policy and Homeowners Choice policy exclude items from dwelling coverage. A partial list of items that are not covered includes:
- Detached garages and most other structures that are not part of the dwelling
- Land damage (other than $10,000 in coverage for land stabilization)
- Swimming pools and spas
- Awnings and patio coverings
- Fences, landscaping, and irrigation systems
- Antennas and satellite dishes
- Patios and decks
- Walkways and driveways not needed for pedestrian or disabled access to your home
- Certain decorative or artistic items such as mirrors, chandeliers, stained glass, or mosaics
Personal Property
A partial list of personal-property items not covered by the standard Homeowners and Homeowners Choice* policies include:
- Pets, birds, fish, livestock, or other animals
- Artwork, including but not limited to paintings, drawings, framing, sculpture, photographs, handmade tapestries and rugs, pottery, and ceramics
- Motor vehicles (such as cars, trucks, and motorcycles), riding lawn mowers, trailers, golf carts, and watercraft, including their furnishings, equipment and inboard, outboard, or inboard-outboard motors
- Glassware, crystal, porcelain, and china
- Swimming pools, spas, and hot tubs
Each CEA policy contains exclusions and special limits of coverage – read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Website, please contact your insurance broker, agent, or residential insurer.
*Personal-Property coverage is an optional coverage under the CEA’s Homeowners Choice policy.
Coverage Sublimits
Both the standard Homeowners policy and Homeowners Choice policies include special limits that apply to your coverage. A partial list of items is covered below:
Coverage Sublimits – Dwelling Coverage
Sublimits – Emergency Repairs- Reasonable and necessary emergency repairs—Up to five percent of the insured value of your house and five percent of your personal-property limit—will be covered as part of your dwelling and personal-property policy limits.
- The first $1,500 of emergency repair costs—to allow you to secure your dwelling and personal-property and avoid further damage—are not subject to a deductible.
- Costs in excess of $1,500 for covered emergency repairs, however, will be subject to the deductible.
- Payments under emergency repair coverage reduce the limit of insurance on your structure and personal-property coverages.
An amount equal to up to five percent of the dwelling coverage limit is provided as additional insurance for debris removal.
Sublimits – Land
As part of the dwelling limit of insurance, your CEA policy will pay up to $10,000, including engineering costs, to replace, rebuild, stabilize, or otherwise restore land you own that is necessary to support your home. The policy does not provide any other coverage for land.
Sublimits – Chimney
If your dwelling has one or more chimneys damaged by an earthquake, your CEA policy includes a single sublimit of $5,000 to repair or replace all dwelling chimneys.
Sublimits – Personal-Property Coverage
Both the standard Homeowners policy and Homeowners Choice* policies include some special limits that apply to your coverage. A partial list of items is covered below:
- $3,000 for damage to electronic data-processing equipment, such as computers and printers
- $250 for money, bank notes, coins, and medals
- $1,000 for business property
- $250 for securities, checks, traveler's checks, and other negotiable instruments
Each CEA policy contains exclusions and special limits of coverage – read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance broker, agent, or residential insurer.
Homeowners Deductibles
CEA earthquake insurance is intended to protect your assets in the event of catastrophic loss—in order to receive benefits from your CEA earthquake coverage, your claim must exceed set deductibles.
CEA policy deductibles are a calculation of the share of loss for which a policyholder is responsible—it is not an amount of money a policyholder must have or pay before receiving money from the CEA.
Deductible for Dwelling Coverage
If your dwelling sustains covered earthquake damage in excess of the deductible, you are eligible to a claim payment from the CEA. The deductible amount is used to determine the amount of your claim payment.
The dwelling deductible is calculated as a percentage of the insured value of the dwelling structure. The insured value is the amount of coverage your insurer has specified as Coverage A: Dwelling in your homeowners insurance policy—this amount can be found on the declarations page of your homeowners insurance policy.
The CEA’s standard Homeowners policy and Homeowners Choice policy offer two dwelling deductible options: the standard base-limit deductible of 15%, or a 10% deductible option.
The CEA dwelling deductible is either 10% or 15% of the insured value of the dwelling. This table illustrates how to calculate a CEA dwelling deductible, using an insured value of $100,000. (In calculating your deductible, please use your own dwelling's insured value, as stated on your CEA policy's declarations page.)
|
|
Deductible Selected by the Policyholder |
x |
Insured Value of Dwelling |
= |
Amount of Deductible |
|
Example 1 |
15% |
x |
$100,000 |
= |
$15,000 |
|
Example 2 |
10% |
x |
$100,000 |
= |
$10,000 |
How your deductible applies to your policy depends on which earthquake policy you’ve chosen to purchase.
CEA’s standard Homeowners policy:
Only covered damage to the dwelling counts toward meeting the deductible under the standard CEA Homeowners policy. This means that, regardless of the amount of damage to your personal property, earthquake damage to your home must exceed the dwelling deductible before a CEA policy would be available to pay any loss to the dwelling or any loss to personal property. Certain other conditions may apply to your loss—please read your policy carefully.
After covered damage to your home exceeds the dwelling deductible, the CEA will authorize payment for your loss, up to the insured value of your dwelling and up to the insured value of your personal property.
CEA’s Homeowners Choice policy:
Earthquake damage to your home must exceed the dwelling deductible before the CEA would pay for any loss to your home under your CEA
Homeowners Choice policy. A Homeowners Choice policy features a dedicated deductible for your
personal-property coverage – this can allow a personal-property recovery even if your home is not substantially damaged. If
damage to your home does exceed the dwelling deductible, however, the Homeowners Choice deductible for personal-property coverage is waived entirely.
Emergency Repairs and your deductible:
Reasonable and necessary emergency repairs—Up to five percent of the insured value of your house and five percent of your personal-property limit—will be covered as part of your dwelling and personal-property policy limits.
- The first $1,500 of emergency repair costs—to allow you to secure your dwelling and personal property and avoid further damage—are not subject to a deductible.
- Costs in excess of $1,500 for covered emergency repairs, however, will be subject to the deductible.
- Payments made under emergency repair coverage reduce the limit of insurance on your structure and personal-property coverages.
Deductible for Personal-Property Coverage
With the CEA’s standard Homeowners policy, damage to personal property is not covered unless damage to the home exceeds the dwelling deductible. If the dwelling deductible has been reached, no additional deductible applies for your personal-property coverage.
CEA’s Homeowners Choice policy offers the option to select or decline personal-property coverage. Homeowners Choice personal-property coverage provides coverage when damage to personal property exceeds the personal-property deductible of 10% or 15%. The personal-property deductible is completely waived if covered damage to the home exceeds the dwelling deductible.
Deductible for Loss-of-Use/Additional Living Expense Coverage
Whether you have chosen the standard Homeowners policy or the Homeowners Choice policy, there is no deductible for Loss-of-Use/Additional Living Expense coverage. Loss-of-Use/Additional Living Expense coverage is an optional coverage if you purchase our Homeowners Choice policy.
Examples of How Deductibles Are Used to Determine Claim Payments
The CEA Homeowners and Homeowners Choice policies offer different ways to manage your earthquake coverage, deductibles, and premium. CEA policies could respond in a variety of ways, depending on your policy-type and coverage limits and the amount and type of damage your home experiences.
Your first scenario involves a catastrophic earthquake.
Both the CEA’s standard Homeowners and Homeowners Choice policies pay the same amounts when all coverages are selected on the Homeowners Choice policy. While declining optional coverage reduces your premium, total claim payment may also be reduced, as illustrated in the example below.
| Coverage Type |
Homeowners Limits of Insurance |
Homeowners Choice Limits of Insurance (All optional coverages purchased) |
Homeowners Choice Limits of Insurance (All optional coverages declined) |
|
Dwelling (Coverage A) and Extensions to Dwelling (Coverage B) |
$500,000 (10% Deductible: $50,000) |
$500,000 (10% Deductible: $50,000) |
$500,000 (10% Deductible: $50,000) |
|
Personal Property (Coverage C) |
$100,000 (Deductible*) |
$100,000 (15% Deductible: $15,000) |
Declined by policyholder |
| Loss of Use (Coverage D) |
$10,000 (No Deductible) |
$10,000 (No Deductible) |
Declined by policyholder |
| Damage Scenario | Amount of Damage | ||
| Dwelling | $250,000 | $250,000 | $250,000 |
| Emergency Repairs | $1,500 | $1,500 | $1,500 |
| Personal Property | $35,000 | $35,000 | $35,000 |
| Loss of Use | $10,000 | $10,000 | $10,000 |
| Coverage Type | Payments by CEA After Deductible | ||
| Dwelling | $200,000 | $200,000 | $200,000 |
| Emergency Repairs | $1,500** | $1,500** | $1,500** |
| Personal Property | $35,000* | $35,000*** |
$0 (Declined by policyholder) |
| Loss of Use | $10,000 | $10,000 |
$0 (Declined by policyholder) |
| Total Claim Payment | $246,500 | $246,500 | $201,500 |
** Under CEA homeowners policies, the first $1,500 of emergency-repairs coverage is not subject to any deductible.
*** Under a Homeowners Choice policy, the deductible for personal-property coverage is waived entirely when the damage to your home exceeds your dwelling deductible.
Your second scenario involves a moderate earthquake.
As an example, here’s how the CEA’s standard Homeowners and Homeowners Choice policies could respond if an earthquake damages your house. The CEA standard Homeowners and Homeowners Choice policies pay different amounts, depending on the policy and coverage selected. The damage cost does not exceed the dwelling deductible, but Homeowners Choice can still help you pay for personal-property damage if you purchase the optional personal-property coverage and its lower-deductible option.
| Coverage Type |
Homeowners Limits of Insurance |
Homeowners Choice Limits of Insurance (All optional coverages purchased) |
Homeowners Choice Limits of Insurance (All optional coverages declined) |
|
Dwelling (Coverage A) and Extensions to Dwelling (Coverage B) |
$500,000 (10% Deductible: $50,000) |
$500,000 (10% Deductible: $50,000) |
$500,000 (10% Deductible: $50,000) |
|
Personal Property (Coverage C) |
$100,000 (Deductible*) |
$100,000 (15% Deductible: $15,000) |
Declined by policyholder |
| Loss of Use (Coverage D) |
$10,000 (No Deductible) |
$10,000 (No Deductible) |
Declined by policyholder |
|
Damage Scenario |
Amount of Damage | Amount of Damage | |
| Dwelling | $30,000 | $30,000 | $30,000 |
| Emergency Repairs | $1,500 | $1,500 | $1,500 |
| Personal Property | $35,000 | $35,000 | $35,000 |
| Loss of Use | $10,000 | $10,000 | $10,000 |
| Coverage Type | Payments by CEA After Deductible | ||
| Dwelling |
$0 (Deductible not met) |
$0 (Deductible not met) |
$0 (Deductible not met) |
| Emergency Repairs | $1,500** | $1,500** | $1,500** |
| Personal Property |
$0* (Deductible not met) |
$20,000*** |
$0 (Declined by policyholder) |
| Loss of Use | $10,000 | $10,000 |
$0 (Declined by policyholder) |
| Total Claim Payment | $11,500 | $31,500 | $1,500 |
** Under CEA homeowners policies, the first $1,500 of emergency-repairs coverage is not subject to any deductible.
*** A Homeowners Choice policy features a dedicated deductible for your personal-property coverage - this can allow a personal-property recovery even if your home is not substantially damaged. If damage to your home does exceed the dwelling deductible, however, the Homeowners Choice deductible for personal-property coverage is waived entirely.
|
How is Homeowners Choice different?
|
A final note about CEA deductibles:
For claims that exceed your CEA policy deductible, you needn’t spend money out-of-pocket before becoming eligible for payment on your claim.
Eligible Structures
CEA homeowner policies are intended for individually-owned structures of one to four dwelling units that are used exclusively for residential purposes. The dwelling structure need not be owner-occupied, and only dwelling structures in California are eligible for coverage—buildings used for any commercial, industrial, or business purpose are not eligible for CEA earthquake coverage.
Structures other than the eligible dwellings described above, including detached garages, outbuildings and other structures, are not eligible for CEA coverage.
Multiple Structures on One PropertyThe CEA will not cover more than one residential structure on one CEA policy. If more than one dwelling is located on a property, the secondary dwellings may be eligible for CEA coverage if written under separate policies—talk to your homeowners insurance agent or company for details.
Homeowners Rates & Premiums
|
How Rates are Determined The CEA is required by law to use the best science available, and is expressly permitted by law to use earthquake computer modeling, to establish actuarially sound rates. |
|
Identifying Seismic Risk
To determine seismic risk for an area, scientists and engineers at the computer modeling firm under contract to the CEA incorporate data from a variety of highly respected sources including the United States Geological Survey (USGS) and the California Geological Survey. Criteria used to assess seismic risk for CEA rating territories include location and proximity to earthquake faults, other geological factors that may affect how structures respond to earthquakes, and soil type. |
|
Computer Modeling
Computer modeling uses scientific and engineering data and actuarial techniques to calculate anticipated losses from earthquakes. Taking characteristics of the CEA portfolio of earthquake-insurance policies, an earthquake model simulates earthquakes of varying magnitudes, in various locations throughout California. The CEA's policy inventory is the most comprehensive database ever developed for earthquake ratemaking. Modeling potential loss scenarios allows the CEA to calculate the claim-paying capacity it must maintain and helps determine appropriate earthquake-insurance rates. The CEA rating methodology is based on the best available scientific, engineering, and actuarial expertise and has been approved and accepted by the CEA Governing Board and the California Department of Insurance. |
|
Rating Territories
Based on scientifically modeled seismic risk, the CEA has established actuarially sound “rating territories,” grouping together those ZIP Codes that present reasonably similar seismic risk. Although the risk might not be exactly the same for each ZIP Code in a rating territory, the risks are similar enough to justify the territorial grouping. Policyholders who live in rating territories close to an earthquake fault or have predominantly poor soil can expect higher rates than those on firm soil or farther from faults. |
|
Age and Type of Construction
|
| How CEA Premiums are Calculated |
| Rating factors, like the location, age, and type of construction of your home, determine your rate, but the amount, types of CEA coverage, and type of CEA Homeowner policy you choose determine your premium (the amount you pay) each year for your earthquake policy. The factors listed below help to determine your overall premium. |
The minimum annual premium for CEA Homeowners and Homeowners Choice policies is $100. Dwellings that have been retrofitted may be entitled to a 5% premium discount. *Personal Property and Loss of Use/Additional Living Expense are optional coverages with the Homeowners Choice policy. You may choose the policy and coverage options that work best for you. |
| Only your broker, agent, or residential insurer can give you an accurate premium quote. But you can use CEA’s online premium calculator at www.EarthquakeAuthority.com to get an estimate. |
|
Retrofit Discount
The California Insurance Code states that CEA policyholders who have retrofitted their homes to withstand earthquake shake damage according to standards and to the extent set by the CEA Governing Board receive a 5% premium discount. |
| The CEA applies a 5% premium discount to dwellings that meet the following requirements: built before 1979, is of a wood-frame construction-type, the frame is tied to the foundation, has cripple walls braced with plywood or its equivalent, and the water heater is secured to the building frame. The retrofit discount is not available for houses built on concrete-slab foundations. |
Purchasing or Changing Coverage
| CEA Policies Are Sold Only Through Participating Insurance Companies |
| CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims. |
|
Establishing, Changing, or Terminating Earthquake
Coverage During a Coverage Period The CEA requires its participating insurance companies to offer their California policyholders the option of adding, changing, or deleting earthquake coverage at any time during the coverage period of the companion residential insurance policy. If earthquake coverage is added during that coverage period, the earthquake-insurance premium is pro-rated, that is, the premium due is based on the number of days remaining until the companion policy's renewal date. Similarly, if earthquake coverage is terminated, the policyholder is entitled to an earthquake-premium refund for the days in the coverage period the coverage will not be in effect. A policyholder may change their policy from a standard Homeowners policy to Homeowners Choice or vice-versa at any time. In order to do so, the original policy will need to be terminated and a replacement policy issued in order to accommodate the change in policy language, terms, and conditions. Keep in mind that whenever a CEA policy is terminated, for whatever reason, an entirely new policy must be established for coverage to resume. Existing CEA policies cannot be transferred from one participating insurance company to another. Changing, Canceling or Terminating the Companion Policy California law requires you to have a residential insurance policy in-force with a CEA participating insurance company in order to have a CEA earthquake policy. If your residential insurance policy cancels, your CEA policy cancels at the same time. It is important to make sure your CEA policy remains in-force and is updated anytime you make a change to your residential insurance policy. |
|
Download a specimen copy* of the CEA Basic Earthquake Policy -
Homeowners Policy (PDF)
Download a specimen copy* of the CEA Basic Earthquake Policy -
Homeowners Choice Policy (PDF) |
| * This link contains only a specimen policy form. Specimen policy forms are not actual insurance contracts or policies but are provided solely to provide information regarding the language used in CEA policy forms. No insurance coverage is provided under any form copied or printed from these links. Insurance coverage is provided only under actual insurance policies duly issued by the CEA through its participating insurers, using approved procedures and only upon the approval of written applications for coverage and the payment of premium. |
Mobilehome
|
Earthquake insurance from the CEA is designed to help pay to repair or rebuild your manufactured home (mobilehome) if it suffers significant damage from an earthquake. The CEA offers either a Homeowners or a Homeowners Choice policy – each has multiple coverage levels and options, to help you create the right policy for your insurance needs. The CEA standard Homeowners earthquake policy for manufactured home owners (mobilehomeowners) includes all of the following coverages:
Beginning July 1, 2012, the CEA’s new Homeowners Choice policy is available which gives you coverage options:
It’s your choice, so you can manage your own residential insurance coverage… and premium. For more information about Homeowners Choice, click here. |
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| CEA policies contain exclusions and special limits of coverage – read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance broker, agent, or residential insurer. | ||||||
|
Homeowners Coverage
|
We offer two different types of earthquake policies for manufactured homes (mobilehomes): a standard Homeowners policy and a Homeowners Choice policy. The CEA’s new Homeowners Choice policy is available to new and existing policyholders on July 1, 2012. Dwelling Coverage (Coverage A) and Extensions to Dwelling (Coverage B) The coverage for your manufactured home or mobilehome (Dwelling Coverage A) and other structures (Extensions to Dwelling Coverage B) are insured as a combined single limit of coverage. The limit of coverage must be equal to the Dwelling (Coverage A) limit on your primary mobilehome owners insurance policy. Dwelling Coverage (Coverage A) Dwelling coverage helps protect the investment you have made in your mobilehome. It will help pay to repair or, (up to the policy limit) replace, an insured mobilehome when structural damage exceeds the dwelling deductible. You may select a 10% or 15% deductible for your Dwelling coverage, and dwelling coverage is required for both our standard Homeowners policy and our Homeowners Choice policy. The insured value of your mobilehome, as stated on the declarations page of your companion homeowners insurance policy, determines the Dwelling-coverage limit of your CEA earthquake policy. If your mobilehome's insured value changes in your homeowners policy, the insured value for your earthquake coverage will change, too, and that will affect your earthquake-policy premium. Extensions to Dwelling Coverage (Coverage B) Extensions to Dwelling coverage will help pay to repair or replace the following items:
Extensions to Dwelling (Coverage B) coverage is included in your dwelling-coverage limit and is paid when your earthquake damage to your home exceeds your dwelling deductible. |
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Personal-Property Coverage (Coverage C)
Personal-Property coverage protects many items in a typical home, including furniture, TVs, audio and video equipment, household appliances, bedding and clothing. Both our standard Homeowners policy and our Homeowners Choice policy offer coverage limits between $5,000 and $100,000.
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Loss of Use/Additional Living Expense Coverage(Coverage D) If damage from an earthquake prevents you from living in your home, or if a civil authority prohibits you from occupying your home after an earthquake, your CEA policy may pay for necessary increases in living expenses you incur to maintain your normal standard of living. CEA’s Loss-of-Use/Additional Living Expense coverage on a property you own and rent to tenants can help protect your rental income, up to your Coverage D limit.
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Additional Coverages
Limited Building Code Upgrade In most California communities, repairing or rebuilding a home after an earthquake must be done according to current building codes. In addition to providing funds for repairing or replacing your home, both the standard Homeowners policy and Homeowners Choice policy include an additional $10,000 in Building Code Upgrade coverage. |
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| Items Not Covered | ||||||||||||||||||||||
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Dwelling-Related Items
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Personal Property
|
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Each CEA policy contains exclusions and
special limits of coverage—read the entire policy to become familiar with what is
and is not covered. If you still have questions about your CEA policy after
reading the information on our Web site, please contact your insurance broker, agent, or
residential insurer.
*Personal-Property coverage is an optional coverage under the CEA’s Homeowners Choice policy. |
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Coverage Sublimits
Both the standard Homeowners policy and Homeowners Choice policies include special limits that apply to your coverage. A partial list of items is covered below. |
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Sublimits - Dwelling Coverage Sublimits – Emergency Repairs
An amount equal to up to five percent of the dwelling coverage limit is provided as additional insurance for debris removal. Sublimits – Land As part of the dwelling limit of insurance, your CEA policy will pay up to $10,000, including engineering costs, to replace, rebuild, stabilize, or otherwise restore land you own that is necssary to support your home. The policy does not provide any other coverage for land. |
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Sublimits - Personal-Property Coverage
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| Each CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance broker, agent, or residential insurer. | ||||||||||||||||||||||
Homeowners Deductibles
|
CEA earthquake insurance is intended to
protect your assets in the event of catastrophic loss—in order to receive benefits
from your CEA earthquake coverage, your claim must exceed set deductibles.
CEA policy deductibles are a calculation of the share of loss for which a policyholder is responsible—it is not an amount of money a policyholder must have or pay before receiving money from the CEA. |
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Deductible for Dwelling Coverage
If your manufactured home or mobilehome sustains covered earthquake damage in excess of the deductible, you are eligible to a claim payment from the CEA. The deductible amount is used to determine the amount of your claim payment. The dwelling deductible is calculated as a percentage of the insured value of the dwelling structure. The insured value is the amount of coverage your insurer has specified as Coverage A: Dwelling in your homeowners insurance policy—this amount can be found on the declarations page of your homeowners insurance policy. The CEA’s standard Homeowners policy and Homeowners Choice policy offer two dwelling deductible options for manufactured home/mobilehome owners: the standard base-limit deductible of 15% or a 10% deductible option. |
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The CEA dwelling deductible is either
10% or 15% of the insured value of the dwelling. This table illustrates
how to calculate a CEA dwelling deductible, using an insured value of $100,000.
(In calculating your deductible, please use your own dwelling's insured value, as
stated on your CEA policy's declarations page.)
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How your deductible applies to your policy depends on which earthquake policy you’ve chosen to purchase. CEA’s standard Homeowners policy: Only covered damage to the dwelling counts toward meeting the deductible under the standard CEA Homeowners policy. This means that, regardless of the amount of damage to your personal property, earthquake damage to your home must exceed the dwelling deductible before a CEA policy would be available to pay any loss to the dwelling or any loss to personal property. Certain other conditions may apply to your loss—please read your policy carefully. After covered damage to your mobilehome exceeds the dwelling deductible, the CEA will authorize payment for your loss, up to the insured value of your dwelling and up to the insured value of your personal property. CEA’s Homeowners Choice policy: Earthquake damage to your mobilehome must exceed the dwelling deductible before the CEA would pay for any loss to your mobilehome under your CEA Homeowners Choice policy. A Homeowners Choice policy features a dedicated deductible for your personal-property coverage – this can allow a personal-property recovery even if your home is not substantially damaged. If damage to your home does exceed the dwelling deductible, however, the Homeowners Choice deductible for personal-property coverage is waived entirely. Emergency Repairs and your deductible: Reasonable and necessary emergency repairs—Up to five percent of the insured value of your house and five percent of your personal-property limit—will be covered as part of your dwelling and personal-property policy limits.
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Deductible for Personal-Property Coverage
With the CEA’s standard Homeowners policy, damage to personal property is not covered unless damage to the mobilehome exceeds the dwelling deductible. If the dwelling deductible has been reached, no additional deductible applies for your Personal-Property coverage. CEA’s Homeowners Choice policy offers the option to select or decline personal-property coverage. Homeowners Choice personal-property coverage provides coverage when damage to personal property exceeds the personal-property deductible of 10% or 15%. The personal-property deductible is completely waived if covered damage to the home exceeds the dwelling deductible. |
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Deductible for Loss-of-Use/Additional Living Expense Coverage
Whether you have chosen the standard Homeowners policy or our Homeowners Choice policy, there is no deductible for Loss-of-Use/Additional Living Expense coverage. Loss-of-Use/Additional Living Expense coverage is an optional coverage if you purchase our Homeowners Choice policy. |
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Examples of How Deductibles Are Used to Determine Claim Payments The CEA Homeowners and Homeowners Choice policies offer different ways to manage your earthquake coverage, deductibles, and premium. CEA policies could respond in a variety of ways, depending on your policy-type and coverage limits and the amount and type of damage your home experiences. Your first scenario involves a catastrophic earthquake. Both the CEA’s standard Homeowners and Homeowners Choice policies pay the same amounts when all coverages are selected on the Homeowners Choice policy. While declining optional coverage reduces your premium, total claim payment may also be reduced, as illustrated in the example below.
** Under CEA homeowners policies, the first $1,500 of emergency-repairs coverage is not subject to any deductible. *** Under a Homeowners Choice policy, the deductible for personal-property coverage is waived entirely when the damage to your home exceeds your dwelling deductible. Your second scenario involves a moderate earthquake. As an example, here’s how the CEA’s standard Homeowners and Homeowners Choice policies could respond if an earthquake damages your manufactured home or mobilehome. The CEA standard Homeowners and Homeowners Choice policies pay different amounts, depending on the policy and coverage selected. The damage cost does not exceed the dwelling deductible, but Homeowners Choice can still help you pay for personal-property damage if you purchase the optional personal-property coverage and its lower-deductible option.
** Under CEA homeowners policies, the first $1,500 of emergency-repairs coverage is not subject to any deductible. *** A Homeowners Choice policy features a dedicated deductible for your personal-property coverage - this can allow a personal-property recovery even if your home is not substantially damaged. If damage to your home does exceed the dwelling deductible, however, the Homeowners Choice deductible for personal-property coverage is waived entirely.
A final note about CEA deductibles: For claims that exceed your CEA policy deductible, you needn’t spend money out-of-pocket before becoming eligible for payment on your claim. |
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Rates & Premiums
|
How Rates are Determined The CEA is required by law to use the best science available, and is expressly permitted by law to use earthquake computer modeling, to establish actuarially sound rates. |
|
Identifying Seismic Risk
To determine seismic risk for an area, scientists and engineers at the computer modeling firm under contract to the CEA incorporate data from a variety of highly respected sources including the United States Geological Survey (USGS) and the California Geological Survey. Criteria used to assess seismic risk for CEA rating territories include location and proximity to earthquake faults, other geological factors that may affect how structures respond to earthquakes, and soil type. |
|
Computer Modeling
Computer modeling uses scientific and engineering data and actuarial techniques to calculate anticipated losses from earthquakes. Taking characteristics of the CEA portfolio of earthquake-insurance policies, an earthquake model simulates earthquakes of varying magnitudes, in various locations throughout California. The CEA's policy inventory is the most comprehensive database ever developed for earthquake ratemaking. Modeling potential loss scenarios allows the CEA to calculate the claim-paying capacity it must maintain and helps determine appropriate earthquake-insurance rates. The CEA rating methodology is based on the best available scientific, engineering, and actuarial expertise and has been approved and accepted by the CEA Governing Board and the California Department of Insurance. |
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Rating Territories
Based on scientifically modeled seismic risk, the CEA has established actuarially sound “rating territories,” grouping together those ZIP Codes that present reasonably similar seismic risk. Although the risk might not be exactly the same for each ZIP Code in a rating territory, the risks are similar enough to justify the territorial grouping. Policyholders who live in rating territories close to an earthquake fault or have predominantly poor soil can expect higher rates than those on firm soil or farther from faults. |
| How CEA Premiums are Calculated |
|
Rating factors, like the location, age, and type of construction of your home, determine your rate, but the amount, types of CEA coverage, and type of CEA Homeowner policy you choose determine your premium (the amount you pay) each year for your earthquake policy. The factors listed below help to determine your overall premium. |
The minimum annual premium for a CEA Manufactured Home (Mobilehome) Policy is $45 for both Homeowners and Homeowners Choice. |
| Only your broker, agent, or residential insurer can give you an accurate premium quote. But you can use CEA's online premium calculator at www.EarthquakeAuthority.com to get an estimate. |
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What Is a Modular Home versus a Mobilehome
or Manufactured Home?
Though built in sections at a factory, modular homes are built to conform to all building codes at their destinations. They are generally placed on a foundation, then joined and completed by a local builder. Mobilehomes (or manufactured homes) are built to quality-assurance standards administered by the U.S. Department of Housing and Urban Development, rather than to building codes at their destinations. Mobilehomes are usually built on a non-removable steel chassis. Building inspectors check the work done locally (such as electrical hook-up) but are not required to approve the structure. The CEA rates modular homes in the same manner as site-built homes. CEA participating insurance companies may rate a mobilehome as a dwelling if the mobilehome is permanently attached to a foundation so that property taxes are assessed. |
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Retrofit Discount
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Purchasing or Changing Coverage
| CEA Policies Are Sold Only Through Participating Insurance Companies |
| CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims. |
|
Establishing, Changing or Terminating Earthquake
Coverage During a Coverage Period The CEA requires its participating insurance companies to offer their California policyholders the option of adding, changing, or deleting earthquake coverage at any time during the coverage period of the companion residential insurance policy. If earthquake coverage is added during that coverage period, the earthquake-insurance premium is pro-rated, that is, the premium due is based on the number of days remaining until the companion policy's renewal date. Similarly, if earthquake coverage is terminated, the policyholder is entitled to a earthquake-premium refund for the days in the coverage period the coverage will not be in effect. A policyholder may change their policy from a standard Homeowners policy to Homeowners Choice or vice-versa at any time. In order to do so, the original policy will need to be terminated and a replacement policy issued in order to accommodate the change in policy language, terms, and conditions. Keep in mind that whenever a CEA policy is terminated, for whatever reason, an entirely new policy must be established for coverage to resume. Existing CEA policies cannot be transferred from one participating insurance company to another. |
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Changing, Canceling or Terminating the Companion Policy California law requires you to have a residential insurance policy in-force with a CEA participating insurance company in order to have a CEA earthquake policy. If your residential insurance policy cancels, your CEA policy cancels at the same time. It is important to make sure your CEA policy remains in-force and is updated anytime you make a change to your residential insurance policy. Only a CEA participating insurance company or its agent can give you an exact CEA-premium quote, but to get a good estimate of the cost, use our handy premium calculator. |
|
Download a specimen copy* of the CEA Basic Earthquake Policy -
Homeowners Policy (PDF)
Download a specimen copy* of the CEA Basic Earthquake Policy -
Homeowners Choice Policy (PDF) |
| * This link contains only a specimen policy form. Specimen policy forms are not actual insurance contracts or policies but are provided solely to provide information regarding the language used in CEA policy forms. No insurance coverage is provided under any form copied or printed from these links. Insurance coverage is provided only under actual insurance policies duly issued by the CEA through its participating insurers, using approved procedures and only upon the approval of written applications for coverage and the payment of premium. |
Renters
|
Whether you rent an apartment, house, mobilehome, or condominium, CEA renters policies are designed to replace your possessions and help you get on with your life after an earthquake. The CEA base-limits renters policy includes the following coverages:
CEA’s increased-limit options allow you to increase Personal Property coverage to as much as $100,000 and Additional Living Expenses/Loss of Use coverage to as much as $25,000. |
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| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. | ||||||
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Who Is Eligible for a CEA Renters Policy? CEA renters policies are intended for people who rent their place of residence and want to protect their assets and financial security against earthquake risk. A landlord who offers for rent a single family dwelling, units within a residential structure of 1–4 units, a mobilehome, or an individual condominium unit may be eligible for a CEA homeowner, mobilehome owner, or condominium owner policy but is not eligible for a CEA renters policy. |
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Renters Coverage
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Personal-Property Coverage (Coverage C)
Whether you rent an apartment, house, manufactured home (mobilehome), or condominium, earthquake insurance from the CEA offers affordable coverage options. With CEA earthquake insurance for renters, you can choose among optional limits to help protect your finances.
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Loss-of-Use/Additional Living Expense Coverage (Coverage D)
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| Items Not Covered | |||||||||||||||||||||||||||||||||||||||
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Personal Property
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| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. | |||||||||||||||||||||||||||||||||||||||
| Coverage Sublimits | |||||||||||||||||||||||||||||||||||||||
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Sublimits - Personal Property Coverage
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| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. | |||||||||||||||||||||||||||||||||||||||
Renters Deductibles
|
CEA earthquake insurance is intended to
protect your assets in the event of catastrophic loss—in order to receive benefits
from your CEA earthquake coverage, your claim must exceed set deductibles.
CEA policy deductibles are a calculation of the share of loss for which a policyholder is responsible—it is not an amount of money a policyholder must have or pay before receiving money from the CEA. |
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Deductible for Personal Property Coverage
The deductible is $750, no matter what limit of Personal Property coverage you select. |
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Deductible for Loss-of-Use/Additional Living Expense Coverage
There is no deductible for Loss-of-Use/Additional Living Expense coverage. How Deductibles Are Used to Determine Claim Payments The CEA Renters policy offers different ways to manage your earthquake coverage. Your CEA policy could respond in a variety of ways, depending on your coverage limits and the amount and type of damage you experience. Your claim example involves a moderate earthquake. An earthquake near one of California’s urban centers could cause unprecedented damage. If an earthquake damages your personal belongings such as electronics, furniture, and household items, and you are required to live elsewhere during repairs, you may be eligible for the following CEA claim payment:
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Rates & Premiums
|
How Rates are Determined The CEA is required by law to use the best science available, and is expressly permitted by law to use earthquake computer modeling, to establish actuarially sound rates. |
|
Identifying Seismic Risk
To determine seismic risk for an area, scientists and engineers at the computer modeling firm under contract to the CEA incorporate data from a variety of highly respected sources including the United States Geological Survey (USGS) and the California Geological Survey. Criteria used to assess seismic risk for CEA rating territories include location and proximity to earthquake faults, other geological factors that may affect how structures respond to earthquakes, and soil type. |
|
Computer Modeling
Computer modeling uses scientific and engineering data and actuarial techniques to calculate anticipated losses from earthquakes. Taking characteristics of the CEA portfolio of earthquake-insurance policies, an earthquake model simulates earthquakes of varying magnitudes, in various locations throughout California. The CEA's policy inventory is the most comprehensive database ever developed for earthquake ratemaking. Modeling potential loss scenarios allows the CEA to calculate the claim-paying capacity it must maintain and helps determine appropriate earthquake-insurance rates. The CEA rating methodology is based on the best available scientific, engineering, and actuarial expertise and has been approved and accepted by the CEA Governing Board and the California Department of Insurance. |
|
Rating Territories
Based on scientifically modeled seismic risk, the CEA has established actuarially sound “rating territories,” grouping together those ZIP Codes that present reasonably similar seismic risk. Although the risk might not be exactly the same for each ZIP Code in a rating territory, the risks are similar enough to justify the territorial grouping. Policyholders who live in rating territories close to an earthquake fault or have predominantly poor soil can expect higher rates than those on firm soil or farther from faults. |
| How CEA Premiums are Calculated |
|
Rating factors, like the location of your residence, determine your rate, but the amount and types of CEA coverage you choose determine your premium, the amount you pay each year for your earthquake policy. The factors listed below help to determine your premium. |
|
|
Only your broker, agent, or residential insurer
can give you an accurate premium quote. But you can use CEA’s online premium calculator
at www.EarthquakeAuthority.com to get an estimate.
The minimum annual premium for a CEA Renters Policy is $35. |
|
Retrofit Discount
Condominium owners and renters are not eligible for the CEA retrofit discount. |
Purchasing or Changing Coverage
| CEA Policies Are Sold Only Through Participating Insurance Companies |
| CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims. |
|
Establishing or Terminating Earthquake
Coverage During a Coverage Period The CEA requires its participating insurance companies to offer their California policyholders the option of adding or deleting earthquake coverage at any time during the coverage period of the companion residential insurance policy. If earthquake coverage is added during that coverage period, the earthquake-insurance premium is pro-rated, that is, the premium due is based on the number of days remaining until the companion policy's renewal date. Similarly, if earthquake coverage is terminated, the policyholder is entitled to a earthquake-premium refund for the days in the coverage period the coverage will not be in effect. Keep in mind that whenever a CEA policy is terminated, for whatever reason, an entirely new policy must be established for coverage to resume. Existing CEA policies cannot be transferred from one participating insurance company to another. |
|
Changing, Canceling or Terminating the Companion Policy California law requires you to have a residential insurance policy in-force with a CEA participating insurance company in order to have a CEA earthquake policy. If your residential insurance policy cancels, your CEA policy cancels at the same time. It is important to make sure your CEA policy remains in-force and is updated anytime you make a change to your residential insurance policy. |
|
Download a specimen copy* of the CEA
Renters Policy for policies effective on and after 01/01/12 (PDF).
|
| * This link contains only a specimen policy form. Specimen policy forms are not actual insurance contracts or policies but are provided solely to provide information regarding the language used in CEA policy forms. No insurance coverage is provided under any form copied or printed from these links. Insurance coverage is provided only under actual insurance policies duly issued by the CEA through its participating insurers, using approved procedures and only upon the approval of written applications for coverage and the payment of premium. |
Condominium
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Most condominium associations maintain the exterior and structural components of the buildings that house individual units and common areas. Association earthquake-insurance policies may not cover damage to your personal property, or compensate you for loss of use or provide funds for post-earthquake assessment by your association. The CEA offers earthquake insurance coverage tailored to the unique needs of condominium owners. The CEA condominium-owner policy (for individual condominiums, townhouses, or other common-interest-development properties) is designed to help get you back into your home after an earthquake. When you buy a CEA base-limits condominium policy, you have the choice of three coverage options which may be purchased separately or in combination. The following are the coverage and limit options available:
CEA’s increased-limit options allow you to increase Personal Property coverage to as much as $100,000 and Loss-of-Use/Additional Living Expenses coverage to as much as $25,000. |
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| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance broker, agent, or residential insurer. | ||||||
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Condominium Coverage
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Building Property Coverage (Coverage A)
When damage exceeds the policy’s Building Property coverage deductible of $3,750, this coverage provides up to $25,000 to repair and replace certain interior elements and improvements and would also cover utility equipment such as pipes and wiring for which you alone are responsible under your homeowners association's governing documents. The coverage does not pay to repair or replace parts of the condominium development that are commonly-owned or are otherwise the responsibility of your homeowners association. Examples of covered interior elements and improvements are built-in appliances, fixtures, and wall-to-wall carpeting. When you purchase earthquake insurance for your condominium, you should confirm which utility and similar equipment are your legal responsibility to repair and maintain. In most California communities, repairing or rebuilding a home after an earthquake must be done according to current building codes. In addition to the $25,000 Building Property coverage limits, the Building Property coverage provides an additional $10,000 in coverage for the cost of making upgrades required by current building codes. |
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Personal Property Coverage (Coverage C)
Personal Property coverage protects many items in the typical home including such items as furniture, TVs, audio and video equipment, household appliances, bedding, and clothing. If you choose Personal Property coverage, base coverage provides up to $5,000 to replace personal property, but you can increase your coverage up to as much as $100,000. By choosing to include Personal Property coverage in your policy, you will automatically receive Additional Living Expense/Loss of Use coverage of $1,500. |
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| Loss-of-Use/Additional Living Expense Coverage (Coverage D) | ||||||||||||||||||||
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If you are unable to live in your condominium because of earthquake damage or if a civil authority prohibits you from occupying your condominium after an earthquake, you may be eligible for Loss-of-Use, up to your policy limit. CEA’s Loss-of-Use coverage may help protect your rental income on a property you own and rent to tenants, when your tenants are unable to occupy your condo because of earthquake damage, up to your policy limit. Loss-of-Use coverage never has a deductible. |
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| If you choose to include Loss-of-Use coverage as part of your policy, you will automatically receive Personal-Property coverage of $5,000. Loss-of-Use coverage and Personal-Property coverage can be increased to higher limits if you choose to do so. | ||||||||||||||||||||
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Loss Assessment Coverage (Coverage E)
In condominium communities, building exteriors, certain building components, and common areas are typically owned by the homeowners association or by all of the condominium owners as a group. In the event of earthquake damage to such property, the association, in accordance with its governing documents, may impose an assessment against members of the association to pay for repairs. Loss Assessment coverage will help you pay your share of certain assessments the association may impose. If the fair market value of your condominium is greater than $135,000, you can purchase $50,000 or $75,000 in Loss Assessment coverage; if the fair market value is $135,000 or less, you can choose to purchase $25,000, $50,000, or $75,000 in coverage. The deductible for this coverage is 15% of the coverage limit you select. |
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You can buy CEA Loss Assessment coverage even if your condominium owners association does not have a “master” earthquake policy in force.
Sublimits for certain specifically covered items apply. For a complete list of coverages, exclusions, and conditions, talk to your broker, agent, or residential insurer, or you can download a specimen policy on the CEA Web site at www.EarthquakeAuthority.com. |
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| Items Not Covered | ||||||||||||||||||||
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Building Property and Loss Assessment
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Personal Property
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| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. | ||||||||||||||||||||
| Coverage Sublimits | ||||||||||||||||||||
|
Personal Property Coverage Sublimits
|
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| Your CEA policy contains exclusions and special limits of coverage—read the entire policy to become familiar with what is and is not covered. If you still have questions about your CEA policy after reading the information on our Web site, please contact your insurance agent or your homeowners insurance company. | ||||||||||||||||||||
Condominium Deductibles
|
CEA earthquake insurance is intended to
protect your assets in the event of catastrophic loss—in order to receive benefits
from your CEA earthquake coverage, your claim must exceed set deductibles.
CEA policy deductibles are a calculation of the share of loss for which a policyholder is responsible—it is not an amount of money a policyholder must have or pay before receiving money from the CEA. |
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Deductible for Building Property Coverage
Building Property coverage provides up to $25,000 to repair or replace interior structural components when damage exceeds the policy’s $3,750 (15%) deductible. |
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Deductible for Personal Property Coverage
The deductible is $750, no matter what limit of Personal Property coverage you select. |
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Deductible for Loss-of-Use/Additional Living Expense Coverage
There is no deductible for Loss-of-Use/Additional Living Expense coverage. |
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Deductible for Loss Assessment Coverage
Loss Assessment coverage has a deductible of 15% of the total Loss Assessment coverage amount. |
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How Deductibles Are Used to Determine Claim Payments The CEA Condominium policy offers different ways to manage your earthquake coverage. Your CEA policy could respond in a variety of ways, depending on your coverage limits and the amount and type of damage you experience. Your claim example involves a moderate earthquake. A major earthquake near one of California’s urban centers could cause unprecedented damage. Condominium owners who need to repair earthquake damage may be presented with unique challenges. If you have to replace personal belongings, repair earthquake damage to the inside of your condominium, and pay a post-earthquake assessment by your owners association, you may be eligible for the following claim payment:
|
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Rates & Premiums
|
How Rates are Determined The CEA is required by law to use the best science available, and is expressly permitted by law to use earthquake computer modeling, to establish actuarially sound rates. |
|
Identifying Seismic Risk
To determine seismic risk for an area, scientists and engineers at the computer modeling firm under contract to the CEA incorporate data from a variety of highly respected sources including the United States Geological Survey (USGS) and the California Geological Survey. Criteria used to assess seismic risk for CEA rating territories include location and proximity to earthquake faults, other geological factors that may affect how structures respond to earthquakes, and soil type. |
|
Computer Modeling
Computer modeling uses scientific and engineering data and actuarial techniques to calculate anticipated losses from earthquakes. Taking characteristics of the CEA portfolio of earthquake-insurance policies, an earthquake model simulates earthquakes of varying magnitudes, in various locations throughout California. The CEA's policy inventory is the most comprehensive database ever developed for earthquake ratemaking. Modeling potential loss scenarios allows the CEA to calculate the claim-paying capacity it must maintain and helps determine appropriate earthquake-insurance rates. The CEA rating methodology is based on the best available scientific, engineering, and actuarial expertise and has been approved and accepted by the CEA Governing Board and the California Department of Insurance. |
|
Rating Territories
Based on scientifically modeled seismic risk, the CEA has established actuarially sound “rating territories,” grouping together those ZIP Codes that present reasonably similar seismic risk. Although the risk might not be exactly the same for each ZIP Code in a rating territory, the risks are similar enough to justify the territorial grouping. Policyholders who live in rating territories close to an earthquake fault or have predominantly poor soil can expect higher rates than those on firm soil or farther from faults. |
| How CEA Premiums are Calculated |
|
Rating factors, like the location of your residence, determine your rate, but the amount and types of CEA coverage you choose determine your premium, the amount you pay each year for your earthquake policy. The factors listed below help to determine your premium. |
The minimum annual premium for a CEA Condominium Owners Policy is $35. |
|
Has Your Homeowners Association Purchased
a Master Policy for Earthquake?
A master policy of earthquake insurance, purchased by a condominium owner’s homeowners association (HOA), may provide condominium owners with a significant layer of protection from earthquake damage and loss. (Such policies are considered commercial policies and are not available through the CEA.) It is important for you to know if your HOA has a master policy of earthquake insurance in place and, if it does, to become familiar with its scope of coverage, exclusions, and deductibles. If your condominium development suffers earthquake damage but your HOA has no earthquake coverage, individual condominium owners might have to pay assessments levied by the HOA to repair or rebuild condominium structures. If an HOA master earthquake policy is in place, it still may have deductibles for which owners of individual units can be assessed. |
|
Retrofit Discount
Condominium owners and renters are not eligible for the CEA retrofit discount. |
Purchasing or Changing Coverage
| CEA Policies Are Sold Only Through Participating Insurance Companies |
| CEA earthquake insurance policies are sold only through CEA participating insurance companies. You can buy CEA coverage only through the insurance company that provides your residential property insurance and only if that company is a CEA participating insurance company. Participating insurance companies process all CEA policy applications, policy renewals, invoices, and payments and handle all CEA claims. |
|
Establishing or Terminating Earthquake
Coverage During a Coverage Period The CEA requires its participating insurance companies to offer their California policyholders the option of adding or deleting earthquake coverage at any time during the coverage period of the companion residential insurance policy. If earthquake coverage is added during that coverage period, the earthquake-insurance premium is pro-rated, that is, the premium due is based on the number of days remaining until the companion policy's renewal date. Similarly, if earthquake coverage is terminated, the policyholder is entitled to a earthquake-premium refund for the days in the coverage period the coverage will not be in effect. Keep in mind that whenever a CEA policy is terminated, for whatever reason, an entirely new policy must be established for coverage to resume. Existing CEA policies cannot be transferred from one participating insurance company to another. Changing, Canceling or Terminating the Companion Policy California law requires you to have a residential insurance policy in-force with a CEA participating insurance company in order to have a CEA earthquake policy. If your residential insurance policy cancels, your CEA policy cancels at the same time. It is important to make sure your CEA policy remains in-force and is updated anytime you make a change to your residential insurance policy. |
|
Download a specimen copy* of the CEA Condominium
Owners Policy for policies effective on or after 01/01/2012 (PDF)
|
| * This link contains only a specimen policy form. Specimen policy forms are not actual insurance contracts or policies but are provided solely to provide information regarding the language used in CEA policy forms. No insurance coverage is provided under any form copied or printed from these links. Insurance coverage is provided only under actual insurance policies duly issued by the CEA through its participating insurers, using approved procedures and only upon the approval of written applications for coverage and the payment of premium. |