California Earthquake Authority (CEA) backed earthquake insurance is the most popular option for earthquake coverage in California: almost 2/3rds of Californians with quake insurance choose CEA coverage.

CEA isn’t the only quake insurance option in California, and isn’t always the lowest cost or comprehensive. In 2023 CEA made some parts of coverage less favorable to homeowners, including restricting low deductibles and removing coverage for some things like masonry veneer. 

You should compare before you decide and this review will help you understand what CEA now covers. 

• $1,500 no deductible emergency repair funding
• CEA is a non-profit organization (though rates aren’t always the lowest)
• No limit to dwelling coverage as long as it matches your homeowners insurance dwelling coverage
• Damage from landslides directly caused by the quake are covered up to one year after the quake

• Chimneys have a maximum $10,000 of coverage 
• No deductibles below 15% for homes with $1,000,000 or more coverage
• No deductibles below 15% for homes built before 1980 on a raised foundation with no proof of retrofit
• No masonry veneer coverage
• Limited to $500 coverage for common breakables like china and vases

You can view a sample policy document here, and this summary can help you see what’s covered and what’s excluded at a glance.

Dwelling (your home)

Coverage limit: The dwelling coverage value on your underlying homeowners policy 

Deductible: 5% – 25%. Deductibles below 15% are only available for homes with a coverage value of $1,000,000 or less. 

CEA policies cover direct physical loss to your home’s main structure from an earthquake plus…

• Water damage from an earthquake damaging a pipe or rain entering a hole created by an earthquake is covered
• Damage from landslides induced by an earthquake causing a loss within one year of the quake 
• Debris removal – up to 5% of coverage limit
• Chimneys – maximum $10,000
• Fungi/mold – maximum $5,000 for damage by fungi released by the earthquake
• Land stabilization / engineering – maximum $10,000
• Extra cost for energy efficient upgrades when rebuilding – maximum $25,000 (for example if code requires you use more insulation than you had before in the walls that are being replaced) 
• Detached garages / structures
• Walkways, driveways, decks, and patios used for entering / exiting the home 
• Retaining walls, piers, bulkheads that stabilize the dwelling
• HOA loss assessments (available up to $10,000)

What’s excluded…

• Fire damage – even if caused by an earthquake. Standard homeowners coverage handles this.
• Flood damage – even if an earthquake triggers a tsunami. Flood insurance handles this.
• Theft – even if caused by looting. Standard homeowners coverage handles this. 
• Masonry veneer damage (stucco and chimney facings are covered)
• Plaster damage that can’t be replaced by sheetrock or drywall
• Awnings, patio covers
• Antennas, satellite dishes
• Decorative or artistic features that can’t be readily purchased in the open market
• Pools and spas
• Landscaping, lawns
• Land – except a maximum $10,000 for stabilization / engineering

Personal property (things inside your home)

Coverage limit: A separate add-on premium with $25,000 maximum coverage 

Deductible: 0 to 5%

Personal belongings in your home are covered, with special limits for these items: 

• Money, bank notes, coins: Up to $250 in aggregate.
• Securities, negotiable instruments: Up to $250 in aggregate.
• Computers and electronics: Up to $3,000 total.
• Business property: Up to $1,000 combined.
• Jewelry, watches, furs: Up to $3,000 in aggregate, with a $1,000 limit per article.
• Collectibles: Up to $3,000 in aggregate.
• Bottled beverages: Up to $3,000 total.
• Breakables (breakable items such as glassware, pottery, crystal, china, ceramics, porcelain, or marble, etc.): up to $500

What’s excluded…

• Pets
• Motor vehicles and lawn mowers
• Aircraft
• Data and valuable documents
• Art – including paintings, sculptures, photos, handmade rugs
• Watercraft
• Trees, plants

Loss of use (a place to stay while you rebuild)

Coverage limit: Up to $100,000 (optional addon to your policy for an extra premium) 

Deductible: None

For an extra premium this pays additional living expenses like rent for a temporary home that matches your normal standard of living while you can’t occupy your home because of earthquake damage. 

It also covers lost rent at fair market rental value if your home is a rental property. 

Building code coverage

Coverage limit: $10,000 included, up to $30,000 for an extra premium

Deductible: None

This covers extra costs to rebuild your home to comply with upgraded building codes that didn’t exist when it was built. 

You must have a homeowners insurance policy in California with one of these participating carriers: 

• Allstate 
• Amica
• Armed Forces Insurance Exchange
• ASI
• AAA
• California FAIR Plan
• Encompass
• Farmers
• Foremost
• Hyundai Marine
• Liberty Mutual
• MAPFRE
• Mercury
• Nationwide
• Progressive
• Safeco
• State Farm
• Toggle
• USAA

If you have homeowners coverage with one of those carriers you can apply for coverage through the agent that handles your current homeowners policy. CEA does not sell insurance directly or handle claims directly. All of your service is provided via your homeowner’s policy insurer. 

You should shop around and compare though – other standalone earthquake carriers like Palomar and GeoVera are available regardless of which carrier has your homeowners insurance. 

Sometimes these alternative quake carriers have lower rates or broader coverage than the CEA and our free calculator can give you an instant comparison.  

Yes, renters and condo owner policies are available if your renters or condo policy is with one of the carriers above.

For renters, only personal property and loss of use coverage is available, as your landlord would be responsible for dwelling damage.

For condo owners CEA coverage handles damage inside the unit, including floors and walls.

What homes are eligible?

There are no specific exclusions to the types of single family homes, condos, mobile homes, or apartments (for renters coverage) that can get CEA coverage. 

Homes with existing earthquake damage are NOT eligible for CEA coverage until all repairs are complete. 

Damage is defined as…

• Structural damage, even if minor
• Dislocations or instability of land, foundations, or the structure
• Cosmetic damage that is significant and not easily repaired

CEA sets rates based on the latest seismic hazard science and factors in your home’s age, foundation type, number of stories, frame construction type, and other factors. 

The average quake policyholder in California pays $107 a month for about $800,000 in coverage (about $1.57 per $1,000 in coverage) and the most popular deductible is 15% according to our analysis. 

CEA offers a Hazard Reduction Discount for higher risk foundations built before 1980 with wood frame construction including…

• Raised foundation: 20-25% discount for a retrofit verification signed by a licensed contractor or structural engineer
• Other non slab foundation: 10-15% discount for a retrofit verification signed by a licensed contractor or structural engineer

If your home is on a slab foundation no retrofit verification is needed, and rates for these homes automatically reflect less risk than other foundations that have no retrofit. 

Some homes might already meet retrofit standards, but you still need a signed verification to get the discount. To get verification your pre-1980 home must have:

• Anchors to the foundation that complies with California Existing Building Code (CEBC) standards
• A water heater secured to the building frame
• Cripple walls, if any, braced to CEBC standards

CEA is a little more lenient with slab foundations than some other quake carriers, which require bolting verification for homes built prior to the mid 1970s, though many of these homes are already bolted as many building codes required bolting from the 1950s onward.

No, the deductible is subtracted from the total damage estimate, and you get a check for the total damage less the deductible. 

You will be paid within 30 days of proof of loss received by the CEA. 

Yes you can build or buy a replacement home elsewhere with insurance settlement funds. 

How are aftershocks handled?

Quakes that happen up to 300 hours (15 days) after the first damaging quake are considered one event, pulling from the same deductible. Any damage from quakes more than 300 hours after the first with damage will be counted as a new event.

CEA can’t cancel your policy before the renewal date due to a quake.

The credit outlook for CEA was upgraded to Stable by A.M. Best on February 15, 2024. Its Financial Strength Rating is B++ (Good). This is lower than some other quake carriers like GeoVera which received an A (Excellent) rating in 2023 and Palomar which received an A- (Excellent) rating. 

The CEA received the following closed complaints to the California Department of Insurance:

2022: 8 (6 found to be without merit)

2021: 17 (16 found to be without merit)

2020: 63 (56 found to be without merit)

CEA is designed to pay its policyholders 100% of covered losses in 99.7% of major earthquake scenarios. CEA estimates it can pay 100% of current policyholder claims if the 1906 San Francisco, 1994 Northridge, or 1989 Loma Prieta earthquake occurred again. 

The CEA is an admitted carrier in California and if the CEA goes insolvent you will have protection for up to $1,000,000 in claims from CIGA, the California Insurance Guarantee Association.

No, CEA only covers damage to properties that pay premiums for CEA coverage.

CEA has no liabilities to the State of California. 

It is not a state funded agency and not responsible for damage to freeways, state buildings, dams, or any other structures for which it isn’t receiving insurance premium payments. 

CEA backed earthquake coverage is a popular choice but not always the most flexible or lowest cost depending on how your home is quoted. 

	CEA	Alternatives
Lowest deductible	5% (15% for policies over $1 million)	2.5%
A.M. Best financial rating	B++	A- or higher
Pool / spa coverage option	No	Yes
Breakables coverage option	Yes, $500 max	Yes
Masonry veneer coverage option	No	Yes
Retrofit discounts	Yes	Yes

We advise homeowners to review coverage from CEA as well as alternative quake carriers like GeoVera and Palomar. We have a free tool that lets you get an instant estimate with no email or phone number required. Then, ask your agent to show you options, and if s/he doesn’t, enlist another agent. 

Insurance rates are filed with the California Department of Insurance and there is no additional premium for using an insurance agent – you pay the same regardless of whether you go direct or which agent you choose.