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where to get earthquake insurance in california

by Tommie Davis Published 2 years ago Updated 1 year ago

The California Earthquake Authority (CEA) provides most residential earthquake insurance policies in California (about 65%). You can’t buy a policy directly from the CEA, but you can buy it from insurance companies that are members of the CEA. You must have a residential property insurance policy in order to buy a CEA policy.

Full Answer

How much does earthquake insurance cost in California?

Feb 17, 2022 · Other ways to buy earthquake insurance in California. 1. Specialty carriers in California. Specialty carriers sell insurance policies that can protect your home from special circumstances that are not ... 2. Non-CEA earthquake insurance companies. 3. Earthquake homeowners insurance endorsement.

How do you get earthquake insurance in California?

Apr 11, 2022 · The California Earthquake Authority is the most popular earthquake insurer in California because it offers the best deals for homeowners. Though you can shop for policies from a bunch of different providers, we’d recommend visiting the CEA’s site to sign up for a policy (or use their payment calculator to see if you can afford one!). Samuel Todd

Is California Earthquake insurance worth it?

Feb 18, 2022 · California Earthquake Authority is responsible for two-thirds (or more) of earthquake policies in California. These policies are sold through their member providers like Allstate or State Farm. The policy is not a CEA policy, although homeowners can purchase it through their regular insurance agent.

Where to buy earthquake insurance?

Protect your home before the next big earthquake strikes by contacting your residential insurer to add earthquake insurance. You also don't have to wait until your residential policy renews in order to purchase a CEA policy. For the best choice of coverages and premiums, buy earthquake insurance in California from CEA.

What is earthquake insurance?

Like a typical home insurance policy, an earthquake insurance policy contains dwelling coverage, personal property coverage, and loss-of-use coverage, . Earthquake insurance also contains additional coverage, like building code upgrade coverage, which covers the increased costs you may accrue in order to make your home compliant with local building code standards after an earthquake.

Does California have earthquake insurance?

Insurance companies may sell their own earthquake insurance. According to the California Department of Insurance, over 30 residential insurance companies offer their own earthquake insurance. Coverage may vary from company to company, as will the cost of your policy.

Can you buy earthquake insurance from a standard insurance company?

As we mentioned, not all homeowners insurance companies are members of the CEA. Some carriers sell their own earthquake insurance policies and earthquake endorsements, and specialty carriers may sell standalone earthquake policies, meaning you can buy earthquake insurance from them and your homeowners insurance from a standard insurance company.

Do you have to take earthquake insurance in California?

Under California law, when you buy homeowners insurance, the insurer must offer you earthquake insurance. (You don’t have to take it.) The law also applies to people buying insurance for condos, renters, mobile homes or manufactured homes.

Does CEA cover earthquakes?

CEA earthquake insurance covers only earthquakes caused by natural catastrophic events. That means quakes caused by human activity won’t be covered, such as quakes from blasting and fracking. But also, “natural events” related to earthquakes such as tsunamis and volcanic eruptions are not covered.

Is a CEA homeowners choice earthquake policy deductible?

CEA Homeowners Choice earthquake policy: The deductibles for structure and contents are separate. If your damage only meets the deductible level for one coverage, you can make the claim for just that coverage.

Does California have earthquake insurance?

Only about 13% of Californians with residential properties have quake insurance -- either through the CEA or other personal earthquake policies. Most quake policies in California are sold through the CEA (66% of them). There’s no commercial insurance available for businesses from the CEA, but it’s available through non-CEA commercial earthquake policies.

How to get earthquake insurance in California?

Follow these four easy steps to buy earthquake insurance in California. Step 1: Know Your Risk. Learn the facts about California earthquakes, your risk, and how to get prepared. Step 2: Get a Free Cost Estimate. The cost of your policy depends on many factors: the earthquake risk where you live, the age of your home, construction type, ...

What happens if you don't have earthquake insurance?

If you choose not to protect yourself with earthquake residential insurance, you will be responsible for 100 percent of the cost to repair your home and replace your belongings after a major earthquake. You may receive a letter from your insurance company offering you a CEA earthquake insurance policy. Since the 1980s, California law has mandated ...

How to purchase a CEA policy?

You can purchase a CEA policy at any time, simply by contacting your residential insurer. Protect your home before the next big earthquake strikes by contacting your residential insurer to add earthquake insurance. You also don't have to wait until your residential policy renews in order to purchase a CEA policy.

How often do you have to send an offer letter for earthquake insurance?

By law, your insurer is required to send a mandatory offer letter at least every two years if you do not yet have earthquake insurance. But don't worry if you happen to miss the due date shown in your mandatory offer letter! You can purchase a CEA policy at any time, simply by contacting your residential insurer.

What is seismic retrofit?

A seismic retrofit involves strengthening your home’s foundation to make it more resistant to shaking. CEA offers earthquake home insurance premium discounts (up to 25%) for older houses that have been retrofitted to better withstand earthquakes.

Does CEA cover earthquake damage?

Because the risk for earthquake damage is great in California , CEA offers homeowners coverage for the structure of the house, building code upgrades and emergency repairs. Renters, mobilehome owners and condo-unit owners have customized coverage choices.

Does CEA offer stand alone insurance?

CEA does not offer stand-alone policies. You must have a residential property insurance policy with one of our providers in place in order to purchase a CEA earthquake policy – see the CEA participating residential insurance companies. Step 4: Call Your Insurance Company. You can buy a CEA insurance policy from the same insurance company you ...

What is earthquake insurance?

A standard homeowners insurance policy excludes coverage from earthquakes, which leaves a gap in homeowners insurance coverage. Earthquake insurance provides coverage for some of the losses and damage that earthquakes can cause to your home and belongings.

What does earthquake insurance cover?

Earthquake insurance coverages can be tailored and purchased to meet your specified needs! The common coverages available include:

Why do I need earthquake insurance if I don't live near a fault line?

Earthquakes can have an impact far beyond major fault lines. According to the Insurance Information Institute, there are 42 states considered at-risk from earthquakes.

Did You Know?

Standard homeowners’ insurance does not cover damage resulting from land movement or landslides.

How to Financially Prepare for an Earthquake

While earthquakes cannot be predicted, what you do financially can be. Take proactive steps today by setting up a safety net you can rely on!

Earthquake Insurance Infographics

Download the Earthquake Insurance infographic for a poster of this webpage, plus bonus information about what your typical homeowner’s insurance does and does not cover.

When was California earthquake insurance created?

Earthquake insurance has come a long way since the California Earthquake Authority was formed in 1996 after the destructive Northridge Earthquake in Southern California.In the initial days, plans were high-cost, high-deductible with low coverages. Now there are a variety of plans to suit various risk tolerances and situations.

What is the emergency repair for an earthquake?

Emergency Repairs: Covers immediate repairs needed after an earthquake that are necessary to protect your home from further damage, such as to repair broken windows or remove broken glass. Loss of Use: Costs exceeding your current housing expenses, to live elsewhere if your home is uninhabitable after an earthquake.

What happens if you don't have earthquake insurance?

Without earthquake insurance you are paying two monthly payments – for your mortgage and temporary housing. If your thought is you would “walk away” from the home and mortgage, you might want to consider other assets that could be seized if the mortgage company decides to sue for the loan balance.

How much does earthquake insurance cost?

Annual earthquake insurance premiums can range from $800 – $5,000 a year and policy deductibles can be relatively high – often 10% – 20% of your coverage limit. Your deductible is what you’ll be required to pay out-of-pocket before your insurance kicks in. Because many damaging earthquakes happen in California, where home values are so high, ...

How much does renter insurance cost after an earthquake?

These types of policies can often be obtained relatively cheaply, as well. In California, renters could pay as little as $35 a year for a policy.

What are the factors to consider when purchasing earthquake insurance?

Geological Survey (USGS) says you should consider these factors when deciding whether purchasing earthquake insurance makes sense for you: Proximity to active faults. Frequency of earthquakes in your area. How much time has passed since the last earthquake.

What happens if you don't have earthquake insurance?

If an earthquake damages your home and you don’t have earthquake insurance, you’ll most likely end up paying out of pocket to make any necessary repairs. If your property is at high risk for earthquakes, the seller may disclose this in a Natural Hazard Report . Most standard homeowners insurance policies don’t cover earthquake damage.

What earthquake occurred in 1886?

Consider the New Madrid seismic zone in Missouri, the magnitude 7.3 earthquake that occurred in Charleston, South Carolina in 1886 or the increasing number of earthquakes occurring in Oklahoma due to industrial wastewater being injected underground.

How long do you have to wait to write a new policy after an earthquake?

According to the National Association of Insurance Commissioners, most insurers wait a certain amount of time after an earthquake occurs – usually 30 – 60 days – before they’ll begin writing new policies.

How much is a 20% earthquake deductible?

If your policy has a 20% deductible, you’ll be responsible for $100,000 of the repairs before your insurance will pay out. If your home sustains less than $100,000 in damages from an earthquake, you’ll likely be left wondering what the point of paying your $1,000 – $2,000 annual premium was.

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