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Home > Insurance Professionals > For Agents > Policy Info for Agents > Homeowners > For Agents: Homeowners Coverages & Deductibles

For Agents: CEA Homeowners Policy Coverages & Deductibles

You might be surprised to discover how flexible and budget-friendly earthquake insurance can be. CEA offers a variety of coverage choices and deductible options for your customers.  

CEA’s rates are based on science, not profit. We use the best best available science and research to set competitive earthquake insurance rates.  

Use the CEA premium calculator to help your customer get a free insurance cost estimate. 

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Sign-up for a self-directed online training, private in-person training, or an instructor-led webinar and be eligible for two free CE credits and access to our free Marketing Value Program (MVP)!

Coverage options for homeowners

Our earthquake insurance for homeowners allows your customer to choose between two policies – either purchase all of their coverages together under one deductible, or choose to have separate deductibles for the dwelling and personal property. With many coverage limits and deductibles to choose from, you can help your customer find a policy to fit their needs and budget.  

Coverages Standard Homeowners Homeowners Choice Additional Information
Home (dwelling)

Included

Included

Covers earthquake damage to your customer's home and structures attached to it, like their garage.  

Coverage Limits

Same as the  companion homeowners insurance policy

Same as the  companion homeowners insurance policy Your customer's home is covered up to the Dwelling’s insured value on their homeowners insurance policy. For example, if their home insurance value is $200,000, their earthquake insurance coverage will be the same amount.  

Deductible

5%-25% 5%-25%

Deductible options are 5%, 10%, 15%, 20% and 25% of the Dwelling (Home) coverage.

Claim-payment example:

  • If your customer's Dwelling is insured for $500,000, and 
  • They have purchased a 5% ($25,000) deductible, and
  • An earthquake causes $80,000 in covered damage, then 
  • Their claim payment would be $55,000 (their covered loss, less their deductible, up to the limit purchased). 
Personal Property Included

Optional 

Covers damage to your customer's belongings, like TVs and furniture.

Coverage Limits

Up to $200,00

Up to $200,00

Available in limits of $5,000, $25,000, $50,000, $75,000, $100,000, $150,000 or $200,000.

Deductible

Included under the Dwelling deductible

5%-25%

The Homeowners Choice policy offers deductibles of 5%-25%. This deductible is separate from the dwelling deductible, which may allow your customer to receive a personal property claim payment even if the damage doesn't meet the dwelling deductible. And, if the dwelling deductible is met, the personal property deductible is waived.

Homeowners Choice claim-payment example:

  • If your customer's dwelling is insured for $500,000 with a 10% deductible ($50,000), and
  • They have personal property covered for $75,000 with a 5% deductible ($3,750), and
  • An earthquake causes damage to the dwelling that is less than the dwelling deductible, but $50,000 in personal property damage, then
  • Although their dwelling deductible is not met, their separate personal property deductible allows them to receive $46,250!
    • This payment is the difference between the covered damage to personal property ($50,000), less the deductible ($3,750).
Loss of Use Included

Optional

Covers additional living expenses if your customer needs to live and eat elsewhere because earthquake damage or a civil authority prevents them from residing in their home. If their dwelling is held for rent, loss of use (fair rental value) is covered.

Coverage Limits

Up to $100,000 Up to $100,000 Available in limits of $1,500, $10,000, $15,000, $25,000, $50,000, $75,000 and $100,000.
Deductible None None

There is never a deductible for Loss of Use.

Building Code Upgrade

Included Included Local authorities often require that rebuilding or significant repair work be performed in a manner consistent with current building codes (not the codes that were in effect when the property was built). This coverage helps pay expenses associated with code-compliant rebuilding or repairs.

Coverage Limits

$10,000 included, $20,000 and $30,000 optional

$10,000 included, $20,000 and $30,000 optional

All homeowners policies include $10,000 in building code upgrade coverage. Your customer can also choose to raise the coverage to $20,000 or $30,000.

Deductible

Paid after the dwelling deductible is met

Paid after the dwelling deductible is met

Once your customer's covered damage exceeds the Dwelling deductible, they could be eligible for payment for Building Code Upgrades, up to their chosen limit.

Emergency Repairs

Included

Included

Covers earthquake-damage repairs that are needed to protect your customer's house or personal property from further damage (examples: repair broken windows or remove broken glass).

Coverage Limits

Up to 5% of homeowners and Personal Property limit

Up to 5% of homeowners and Personal Property limit

For example, if your customer's house is insured for $200,000 and an earthquake strikes causing $80,000 in damage, you have up to 5 percent ($10,000) in Emergency Repairs coverage to make your house safe to live in.

Deductible

First $1,500 has no deductible

First $1,500 has no deductible

Emergency Repairs provide coverage up to 5 percent of dwelling and 5 percent of the personal property limit. The first $1,500 is not subject to the deductible.

Breakables

Optional

Optional

Within policy terms, covers glassware, crystal, china, ceramic, pottery, porcelain, or marble items that are broken because of an earthquake.

Exterior Masonry Veneer

Optional Optional

Exterior Masonry Veneer is an optional coverage for certain exterior veneers. “Masonry” and “veneer” refer to a nonstructural facing of brick, concrete, stone, tile, or similar material, attached to a backing as ornamentation. Stucco and exterior chimney facings are not considered exterior masonry veneers. It applies to your customer's dwelling coverage and is subject to the dwelling deductible. 

We encourage you to read the entire CEA policy—and its policy declarations page—to understand coverages and how they work. Exclusions and special limits apply. All terms and conditions of CEA insurance coverage are found in the CEA insurance-policy form. Refer to a sample policy, below. 

Homeowners Choice Policy Sample (PDF)
Standard Homeowners Policy Sample (PDF)
Optional Endorsement - Coverage For Breakables (PDF)
Optional Endorsement - Coverage For Exterior Masonry Veneer (PDF)


Ready to learn more? Take a free agent training course. Once you pass, you’ll earn 2 CE credits and become part of our special Marketing Value Program, which offers you free sales support and promotional items for your customers!

Have questions? View our collection of Agent FAQs to get answers to some of the most commonly-asked questions we receive from agents.

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