CEA Earthquake Insurance – Some Basics
Why CEA earthquake insurance?
- 2,000 known faults crisscross California, and on average, according to the official California
Multihazard Mitigation Plan:
- Moderate earthquakes (magnitude 5.5) hit California 3 to 4 times a year.
- A strong earthquake (magnitude 6 to 6.9) hits California every 2 to 3 years.
- A major earthquake (magnitude 7 to 7.9) hits California about every 10 years.
- Regular homeowners, condo-unit, and renters policies don’t cover earthquake damage.
- Today, even if a resident qualifies for a disaster grant, it may not cover the cost to repair or rebuild.
Disaster loans, if available, are limited and must be repaid.
CEA premiums are based on straightforward, objective risk factors.
CEA premiums are based on science, not profit. Determining factors are the insured value, location,
construction- and foundation-types, age, number of stories, and coverage choices.
CEA does not require policyholders to "pay" a deductible.
A CEA policy deductible defines when the CEA policy begins paying for loss—it does not impose
an out-of-pocket payment obligation on the policyholder. Two CEA coverages come with zero
deductible: $1,500 for emergency repairs and, if a home can’t be occupied after an earthquake,
up to $25,000 for additional living expenses.
Useful, flexible coverage: separate deductible for personal-belongings coverage.
A CEA policyholder can choose a separate deductible for personal belongings that makes a claim
payment more likely after a moderate shaker that doesn’t damage the house.
- CEA’s Standard Homeowners policy includes dwelling, personal property, and additional
living expense coverages.
- With CEA’s Homeowner’s Choice policy, the policyholder buys dwelling coverage but may
also insure personal property, cover additional living expenses, or both.
Condo owners and renters have unique needs.
- A condo-owners association can assess owners to repair expensive, uninsured quake
damage to common areas—the CEA offers condo loss-assessment coverage.
- CEA renters earthquake insurance insures personal property such as electronics and
furniture with a flat $750 deductible, and covers additional living expenses up to $25,000
with no deductible.
All details, limits, and conditions of CEA coverages are found in CEA insurance policies.