Earthquake damage is typically excluded from California homeowners policies, so you buy it separately. Two main paths exist: the California Earthquake Authority (CEA), a state-established provider, and private-market insurers. Earthquake policies use percentage deductibles, often around 5-25% of the coverage limit, rather than a flat dollar amount.
Why is earthquake excluded from my home policy?
Standard California homeowners policies generally exclude earthquake damage. Because a major quake can affect a whole region at once, insurers separate that risk into its own coverage. To be protected, you typically need a dedicated earthquake policy in addition to your home policy.
Does my insurer have to offer earthquake coverage?
Yes. In California, an insurer that sells you a homeowners policy must offer earthquake coverage at least every other year, in writing, stating the limits, deductible, and premium. You typically have 30 days to accept once the offer is mailed. If you have not seen an offer, ask your agent.
How do earthquake deductibles work?
Earthquake policies use a percentage deductible, calculated as a share of the coverage limit rather than a fixed dollar figure. Deductibles often range from about 5% to 25%. Some options and lower deductibles may not be available for older homes on certain foundations or for higher-value homes, so the choices depend on the property.
What is the difference between the CEA and the private market?
The California Earthquake Authority (CEA) is a state-established provider that offers earthquake policies through participating insurers. Private-market insurers, such as GeoVera and Palomar, are named here only as educational examples of the private alternative. Coverage terms, deductible choices, and limits can differ between the CEA and private options, so it is worth comparing both.
How do I choose between them?
Look at the coverage limits, the deductible percentages available for your home, what the policy pays for (dwelling, contents, and loss of use), and how each option fits your budget and risk. A licensed agent can walk you through CEA and private-market options side by side so the decision is informed.
Many earthquake policies can include contents and loss of use in addition to the dwelling, depending on the coverage you select. Confirm the specifics on the policy.
Earthquake deductibles are set as a percentage of the coverage limit, which can be a large dollar amount. This structure reflects the region-wide nature of earthquake risk. Carriers commonly offer a choice of percentage, so a lower deductible is usually available at a higher premium.
Neither is universally right. The CEA and private insurers differ on terms and deductible options. Compare both against your home and needs with an advisor.
No, it is generally not required by the state. It is optional coverage, though a lender may have its own requirements.
This guide is general information about insurance in California, not a policy, a quote, or personalized advice. Coverage, eligibility, and pricing depend on your situation and the policy terms. Talk to a licensed agent before you make a decision.
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