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We Provide Earthquake Insurance for Californians

CEA Homeowner Policy Coverages & Deductibles

CEA Homeowner Policy Coverages & Deductibles

​​​​​​​​The risk is real: To your house. To your financial security. To your peace of mind.

A California Earthquake Authority (CEA) policy covers you so that you can repair, rebuild and recover after an earthquake strikes.

CEA offers more coverage choices and more deductible options with two homeowners policies: Homeowners Choice and standard Homeowners. Choose the best policy for your needs and budget.

Compare Homeowner Policy Coverages & Deductibles

Coverages
Standard Homeowners
Homeowners Choice
Home
(dwelling)
Included
Included
 
Dwelling (and extensions to dwelling) covers your customer's house’s structure as well as any attached extensions such as an extra room or garage.
Coverage Limit
Same as the companion residential property policy
Same as the companion residential property policy
 
Your customer's house is covered up to the dwelling's insured value on their fire or residential policy. For example, if your customer's primary residence's insured value is $200,000, their earthquake insurance will cover the residence for the same amount.
Deductible
5% - 25%
5% - 25%
 

Deductible options are 5, 10, 15, 20 and 25 percent of your customer's Dwelling (house) coverage.

Example: If their house is insured for $500,000 with a 5 percent deductible ($25,000), and an earthquake causes $80,000 in covered damage, their claim payment would be $55,000 (the difference between the covered damage and their deductible).

Your customer does not have to pay the deductible out of pocket to receive a claim payment, it is simply subtracted from the total claim payment.

Personal Property
(belongings)
Included
Optional
 
Personal Property covers damage to personal belongings, like TVs and furniture.
Coverage Limit
Up to $200,000
Up to $200,000
 
Your client can cover their personal property for $5,000, $25,000, $50,000, $75,000, $100,000, $150,000 or $200,000.
Deductible
The standard Homeowners policy includes Personal Property coverage, and it is paid up to your customer's selected limit when the Dwelling deductible is met.
​Personal Property is an optional coverage with Homeowners Choice policies.
 

With a Homeowners Choice policy, your customer can choose 5, 10, 15, 20 or 25 percent deductible for their personal property coverage. This deductible is separate from the dwelling deductible,which may allow your customer to receive a personal property claim payment even if their house is not badly damaged. And, if the Dwelling deductible is met, the personal property deductible is waived.

Example: With a Homeowners Choice policy, let’s say your customer's house is insured for $500,000 and they have a 5 percent dwelling deductible ($25,000). They also have personal property covered for $75,000 with a 10 percent deductible ($7,500). A moderate earthquake strikes and causes damage to the house, but causes $57,500 in personal property damage. Although the dwelling deductible wasn’t met, the separate-deductible feature for personal property allows them to receive a payment of $50,000 for their personal property! This payment is the difference between the covered damage to personal property ($57,500) minus the deductible ($7,500).

Loss of Use
(additional living expenses if your customer has to live elsewhere following an earthquake)
Included
Optional
 
If your customer needs to live and eat elsewhere after an earthquake (either because of earthquake damage or a civil authority prevents entry), Loss of Use can cover their expenses that are greater than what they normally would spend on housing and other living expenses. Loss of Use is an optional coverage with Homeowners Choice policies.
Coverage Limit
Up to $100,000
Up to $100,000
 
Loss of Use is available in $1,500, $10,000, $15,000, $25,000, $50,000, $75,000 and $100,000 limits.
Deductible
None
None
 
There is never a deductible for Loss of Use. Even if your customer's dwelling deductible isn’t met, Loss of Use will cover additional living expenses if they have to live elsewhere following an earthquake, up to their chosen limit.
Building Code Upgrade
(costs to bring your customer's house up to current building code standards while making covered repairs)
Included
Included
 
If your customer's house suffers earthquake damage, Building Code Upgrade coverage can cover the costs to bring their house to current building code standards during covered repairs.
Coverage Limit
$10,000 included, $20,000 and $30,000 optional
$10,000 included, $20,000 and $30,000 optional
 
All homeowners policies include $10,000 in building code upgrade coverage. Your customer can also choose to raise the coverage to $20,000 or $30,000.
Deductible
Building Code Upgrade is paid after the dwelling deductible is met
Building Code Upgrade is paid after the dwelling deductible is met
 

Once your customer's covered damage exceeds their Dwelling deductible, they could be eligible for payment for Building Code Upgrades, up to their chosen limit, to bring their home up to current building code standards.

Example: If your customer's house is insured for $200,000 with a 20 percent deductible ($40,000), and an earthquake strikes causing $60,000 in damage, they will be covered up to $10,000 to bring their home up to current building code standards.

Emergency Repairs
Included
Included
 
Emergency Repairs covers immediate repairs needed after an earthquake that are necessary to protect your customer's house from further damage, such as to repair broken windows or remove broken glass.
Coverage Limit
Up to 5% of homeowners and Personal Property limit
Up to 5% of homeowners and Personal Property limit
 
If your customer's house is insured for $200,000 and an earthquake strikes causing $80,000 in damage, they have up to 5 percent ($10,000) in Emergency Repair coverage to make their 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 percent of dwelling and 5 percent of the personal property limit. The first $1,500 is not subject to the deductible.
Breakables
Optional
Optional
 
Breakables is an optional coverage that covers breakable belongings like dishes and ceramics.
Exterior Masonry Veneer
Optional
Optional
 
Exterior Masonry Veneer is an optional coverage that covers exterior masonry veneer, such as decorative stone or brick. It applies to your customer's Dwelling coverage and is subject to the Dwelling deductible.

Read your CEA policy carefully

We encourage you to read your entire CEA policy to understand what is covered and what is not. Exclusions and special limits apply. Your condo owners insurance agent can answer any questions.

All details, limits, and conditions of CEA coverages are found in CEA insurance policies. Refer to a Sample Policy, below, for the full ​terms and definitions.