California Earthquake Authority (CEA) backed earthquake insurance is the most popular option for earthquake coverage in California: about 61% of California residential earthquake policies were CEA policies in 2025.

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 more than $1,000,000 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.  Lower deductibles are also unavailable for pre-1980 frame homes on non-slab foundations without a verified retrofit.

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) 
• Attached garages / structures (not detached garages)
• Walkways, driveways, decks, and patios used for entering / exiting the home 
• Retaining walls, piers, bulkheads that stabilize the dwelling
• HOA loss assessments for covered shared access or home-stability features (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)
• Costs above the policy’s allowed functional plaster replacement, such as matching the original plaster
• 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: 5%, 10%, 15%, 20% or 25% under Homeowners Choice; waived when the dwelling deductible is met

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 total

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

If your CEA policy includes loss-of-use coverage, it can pay qualifying additional living expenses, such as temporary rent, when earthquake damage makes your home unfit to live in. This coverage has no deductible and does not require you to meet the dwelling deductible. Coverage limits and other policy conditions still apply.

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

Paid once covered dwelling damage exceeds the dwelling deductible; repair requirements apply

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 qualifying homeowners insurance with a CEA participating carrier.

For a final CEA quote or to apply, you must go through your current homeowners insurance agent (or your insurer if you buy directly). Your homeowners insurer must participate in CEA. If CEA isn’t available through them, private-market options may be available. CEA does not sell insurance directly. Policy service and claims are handled by your homeowners 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 a carrier on CEA’s participating-insurer list.

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 structural repairs are complete. Minor, easily repaired cosmetic damage may be accepted after inspection and insurer approval. 

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 California homeowner earthquake premium was about $120 a month in 2025.

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, you don’t have to pay the deductible to the insurer before receiving a payment. It is subtracted from your covered damage. Your home doesn’t have to be destroyed for a claim to pay, but you remain responsible for the portion insurance doesn’t cover. Policy limits and claim-settlement terms still apply.

Undisputed covered amounts are payable within 30 days after proof of loss is received. Other covered amounts also require agreement, a final judgment or a final appraisal award. The participating insurer handles the claim.

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

How are aftershocks handled?

Quakes that happen up to 360 hours (15 days) after the initial earthquake are considered one event, pulling from the same deductible. Any damage from quakes more than 360 hours after the initial earthquake 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 California Department of Insurance lists the following company-wide closed complaints for California Earthquake Authority (CEA):

2025: 3 (including 3 found to be without merit)

2024: 13 (including 8 found to be without merit)

2023: 8 (including 4 found to be without merit)

These totals are not adjusted for the number of policies or claims.

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. 

CEA has financial resources and reinsurance to pay earthquake claims, but those resources are not unlimited. If available funds are exhausted, payments may be reduced or made in installments. Neither the State of California nor CIGA guarantees CEA claims.

Private earthquake policies issued by admitted CIGA-member insurers have a different backstop. If the insurer becomes insolvent and is ordered into liquidation, CIGA can pay qualifying claims. Its limits are up to $1,000,000 for the dwelling and up to $500,000 each for other structures, personal belongings, and loss of use.

These limits can total up to $2,500,000 across the four categories, but they are not interchangeable and do not increase your policy’s coverage limits. Payments remain subject to the policy’s limits, CIGA’s eligibility and valuation rules, and other restrictions. Surplus-lines policies do not have this protection.

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% if eligible; minimum 15% above $1 million or for pre-1980 frame homes on non-slab foundations without a verified retrofit	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. For a final CEA quote or to apply, you must go through your current homeowners insurance agent (or your insurer if you buy directly). For private-market options, you can also contact another agent who offers them.

Insurance rates are filed with the California Department of Insurance, but policy, broker and installment fees may affect your total cost.