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CEA Homeowners Policy Coverages & Deductibles

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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 house.

CEA is not-for-profit. Our insurance rates are based on the best available science and research, not profit.

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

Use the CEA premium calculator to get an insurance cost estimate. Then, contact your residential insurer, who will help you purchase your policy.

How to Buy a Policy

Coverage options for homeowners

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

Coverages Standard Homeowners Homeowners Choice Additional Information
Home (dwelling)

Included

Included

 Covers earthquake damage to your home and certain structures attached to it, like an attached garage.

Coverage Limits

Same as your homeowners insurance policy

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

Deductible

 5%-25% 5%-25%

Deductible options are 5%, 10%, 15%, 20% and 25% of your Dwelling (Home) coverage. Homes with a Coverage A dwelling limit greater than $1,000,000, or dwellings built before 1980 on a raised or other type foundation that do not have a verified retrofit, are only eligible for a 15%, 20% or 25% deductible.

Claim-payment example:

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

Optional

 Covers damage to your belongings, like TVs and furniture.

Coverage Limits

Up to $25,000

Up to $25,000

Available in limits of $5,000 or $25,000.

Deductible

Included under your Dwelling deductible—no Personal Property losses can be paid unless Dwelling loss exceeds the policy’s deductible.

5%-25%

The Homeowners Choice policy offers Personal Property coverage deductibles of 5%-25%. Homes with a Coverage A dwelling limit greater than $1,000,000, or dwellings built before 1980 on a raised or other type foundation that do not have a verified retrofit, are only eligible for a 15%, 20% or 25% deductible.

This deductible is separate from the dwelling deductible, which may allow you to receive a personal property claim payment even if you don’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 dwelling is insured for $500,000 with a 10% deductible ($50,000), and
  • You have personal property covered for $25,000 with a 5% deductible ($1,250), and
  • An earthquake causes damage to the dwelling that is less than the dwelling deductible, but there is also $20,000 in personal property damage, then
  • • Although your dwelling deductible is not met, your separate personal property deductible allows you to receive $18,750!
    • o This payment is the difference between the covered damage to personal property ($20,000), less the deductible ($1,250).
Loss of Use Included

Optional

Covers additional living expenses if you need to live and eat elsewhere because earthquake damage or a civil authority prevents you from residing in your home. If your 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 CEA homeowners policies include $10,000 in building code upgrade coverage. You 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 covered dwelling damage exceeds the deductible, you could be eligible for payment for Building Code Upgrades, up to your chosen limit.

Emergency Repairs

Included

Included

Covers earthquake-damage repairs that are needed to protect your 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 house is insured for $200,000 and an earthquake strikes causing $80,000 in damage, you have up to 5% ($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% of dwelling and 5% of the personal property limit. The first $1,500 is not subject to the deductible.

We encourage you to read your entire CEA policy—and its policy declarations page—to understand your 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.