What to know about earthquake insurance
- Your homeowners insurance most likely does not coverage earthquake. You will need a separate earthquake policy.
- If you have homeowners insurance in California, your insurance company must offer to sell you earthquake insurance every year or every other year
What does it cover?
- The home structure–if purchasing through the California Earthquake Authority (CEA), the dwelling coverage will match its corresponding homeowners or rental property policy. The deductibles are a percentage, ranging from 5% to 25%.
- Personal property–coverage for your furniture and belongings. CEA limits start at $5,000 and go up to $200,000.
- Additional living expenses–covers temporary and extra costs to live somewhere else while your area is evacuated or your home is repaired. CEA limits range from $1,500 to $100,000.
Earthquake insurance does have limitations. The purpose of earthquake insurance is to help put a roof back over your head, but it does not replace everything you lost.
What if I rent? Or own a condo unit?
- If you rent, earthquake insurance will cover your belongings and will pay some additional living expenses while the rented home is being repaired.
- For a condo unit, earthquake insurance will cover your belongings and will pay some additional living expenses. The building will likely need to have it's own earthquake insurance.
Stand-alone earthquake insurance
If your homeowners insurance company does not work with CEA, you must purchase from stand-alone or monoline earthquake insurance companies.