Wildfire & Catastrophe guide
CEA Earthquake Coverage and Retrofit Discounts
Understand separate earthquake coverage, percentage deductibles, CEA options, and retrofit resources that may reduce risk and premium.
Educational examples updated . This update does not represent a new staff or legal review.
What to know first
- Standard homeowners policies generally exclude earthquake shaking damage.
- CEA policies offer selectable coverages and percentage deductibles.
- Qualifying retrofits may reduce damage and may qualify for premium discounts.
What to compare in your policy
Compare the dollar deductible for each offered CEA option. Lower percentage choices are not available for every home, and personal property and loss of use have separate selections.
These are educational benchmarks, not a recommendation for every applicant.Earthquake coverage is separate from standard homeowners insurance. CEA coverage is sold through participating residential insurers and should be reviewed for dwelling, personal property, loss of use, building-code upgrade, and deductible structure.
A percentage deductible can represent a substantial dollar amount because it is based on the insured dwelling limit. Compare the actual dollar deductible, premium, retrofit status, and ability to finance repairs after a major earthquake.
Qualifying foundation bolting and cripple-wall bracing may reduce structural damage. Current grants, eligibility, and discount rules change, so homeowners should verify requirements before permits or work begin.
A percentage deductible can be a large amount
Illustrative example: 15% of a $600,000 dwelling limit is $90,000. If eligible dwelling damage is $120,000, the simplified amount above that deductible is $30,000, assuming adequate limits and no other adjustments. The deductible is not 15% of the $120,000 repair bill.
California Earthquake Authority (CEA) Standard Homeowners and Homeowners Choice policies handle coverage selections and deductibles differently. Under current CEA options, included or selected loss-of-use coverage has no deductible, so do not assume you must first fund the entire dwelling deductible to use that benefit. Its other conditions and limits still apply.
A retrofit is structural work, not a coverage promise
Foundation bolting helps connect a house to its foundation; bracing reinforces vulnerable short walls below the main floor. Whether work qualifies for a CEA discount depends on the home's construction and verified compliance with the program. Ask about documentation before paying for work. Have us compare the available coverage choices, dollar deductibles, and verified discount—not just the lowest percentage advertised online.