La Jolla · Earthquake insurance · Process

Earthquake insurance in La Jolla: how the state earthquake plan (CEA) works

Most California earthquake insurance comes from the California Earthquake Authority (CEA), a state-run program sold through insurance companies. This guide explains what the policies cover and the deductible choices. It is not a price quote, and you do not have to buy.

I’m Weston Clark, Founding Member of the Dickinson-Clark Team at Compass. I help buyers and sellers in La Jolla and coastal San Diego read these choices in plain words. A licensed insurance agent gives you prices and confirms each choice.

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Related: Fire insurance · Guides · La Jolla · Flood insurance · Second home

The basics

Buyers and owners in La Jolla ask the same questions. Does my home policy cover earthquakes? What is the CEA? How does the deductible work?

Two state sources answer them well. One is the California Department of Insurance (CDI), the state office that oversees insurance. The other is the CEA. Read their guides, then confirm forms, limits and prices with a licensed insurance agent.

What a home policy usually leaves out

The CDI says homeowners, renters and condo policies usually do not cover earthquake damage. There is one key rule: by California law, a home or renters policy must cover fire caused by or after an earthquake. So fire after a quake is a question for your home policy.

You do not have to buy earthquake insurance. If you have a mortgage, you must have home insurance, but earthquake cover is your choice. Your home insurer must offer earthquake cover in writing every other year. You have 30 days from the mail date to say yes. If you do not reply, that counts as a no.

Start here: CDI Earthquake Insurance.

What the California Earthquake Authority is

The CDI says the CEA provides most earthquake insurance in California. It has policies for homeowners, mobile home owners, condo owners and renters. You cannot buy from the CEA directly. You buy through a member insurance company.

You also need a regular home policy from a member company. Your CEA policy must come from the same company.

The CEA website has sample policy forms and a price calculator. Use them with a licensed agent, and ask the agent for a quote.

Links: CEA home · CEA homeowners · Coverages and deductibles.

The house, your things, and a place to stay

A CEA homeowners policy has three main parts:

  • Dwelling (Coverage A): damage to the house itself. The CEA also lists some add-ons, called Coverage B. The CDI says this limit matches the house limit on your regular home policy.
  • Personal property (Coverage C): your things inside the home, like furniture, appliances and clothes.
  • Loss of use (Coverage D): extra costs to live somewhere else while you must leave or while the home is fixed. This part has no deductible.

The CEA has two homeowners policies. Standard Homeowners bundles the parts together. You usually must meet the house deductible before your things are paid for. Homeowners Choice lets you pick house and belongings cover on their own. The CEA says the belongings deductible is dropped if you meet the house deductible.

The CDI lists belongings limits from $5,000 up to $25,000, and loss-of-use limits from $1,500 to $100,000. Check current forms with a licensed agent or the CEA.

Deductible choices

A deductible is the part of a loss you pay before the policy pays. For the house, the CEA and CDI list choices of 5%, 10%, 15%, 20% or 25% of the house limit (Coverage A and B). It is a percent, not a set dollar amount.

Some homes cannot get the lower choices. If the house limit is over $1 million, the lowest choice may be 15%. The same can apply to homes built before 1980 on a raised foundation (not a flat slab) without a checked earthquake retrofit. A retrofit means the house was strengthened for quakes. The CEA or a licensed agent can tell you what a given home can get.

Private stand-alone policies

The CDI says a few companies sell stand-alone earthquake policies. These are not CEA policies. You can buy one without getting your home policy from the same company. We do not recommend any company and do not list prices.

Ask a licensed insurance agent what is available. Start with the CDI and CEA.

How this fits with fire insurance

Earthquake cover and wildfire cover are separate topics:

Read them side by side. Neither one replaces a licensed insurance agent.

FAQ

How does earthquake insurance work in California?

Most of it comes from the California Earthquake Authority (CEA), sold through member insurance companies. A policy covers the house, your things, and the cost of living somewhere else, with a deductible you choose. You do not have to buy it.

What is the California Earthquake Authority (CEA)?

The state insurance office (CDI) says the CEA provides most earthquake insurance in California. You cannot buy from the CEA directly. You buy through a member company, and you need your regular home policy from that same company. Ask a licensed agent which companies take part today.

How is cover for the house different from cover for my things?

Dwelling (Coverage A) covers the house, and its limit matches your home policy. Personal property (Coverage C) covers your things inside. With the CEA Standard policy, your things are usually paid only after you meet the house deductible. With Homeowners Choice, your things can have their own deductible. Ask a licensed agent about your form.

What deductible choices does the CEA offer?

A deductible is the part of a loss you pay first. For the house, the choices are 5%, 10%, 15%, 20% or 25% of the house limit. Homes with a house limit over $1 million, or some homes built before 1980 on raised foundations without a checked retrofit, may not get the lower choices. The CEA or a licensed agent sets prices and what a home can get.

How does this relate to La Jolla fire insurance?

This guide covers earthquake insurance and the CEA. Our La Jolla fire insurance guide covers wildfire maps and the FAIR Plan. Read them side by side. Neither one replaces a licensed insurance agent.

Is this insurance advice?

No. This page is general information. Ask a licensed insurance agent about cover, deductibles, what is left out, and prices, and check current CEA and CDI materials.

Talk with Weston about earthquake insurance

Tell me where you are with earthquake cover for a La Jolla or coastal San Diego home. I can walk you through the choices, and a licensed insurance agent can give you prices.

Or call (858) 997-8998 · weston@sandiego.homes · Search on Compass

Sources

Weston Clark · Founding Member of the Dickinson-Clark Team at Compass · (858) 997-8998 · weston@sandiego.homes

Weston Clark, DRE #02122466 · Compass, DRE #01527365

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only, compiled from sources deemed reliable but not verified. Changes in price, condition, sale or withdrawal may be made without notice. All measurements and square footage are approximate.

⌂ Equal Housing Opportunity. This page is general information about places and process — not insurance, legal, tax, title, or financial advice. Confirm coverages, deductibles, exclusions, and pricing with a licensed insurance agent and current CEA / CDI materials. Brokerage compensation is discussed directly with Weston for the specific transaction.