Earthquake coverage offered by the California Earthquake Authority (CEA):
Part 1: Your dwelling coverage. This covers your home up to a certain amount, called the limit.
The limit on your earthquake insurance is the same as the limit on your homeowners insurance (dwelling coverage). The deductible is your part of the loss. It usually 15% of the limit. You can buy a 10% deductible for a higher cost. Usually, the insurance does not cover landscaping, pools, fences, masonry, and separate buildings. If you rent or own a condo, you do not need this coverage.
Part 2: Your personal property coverage. This covers things in your home, like furniture, TVs, and computers.
The limit is usually low—such as $5,000 or 10% of the limit on the dwelling. You can increase the limit up to $100,000. Things like china and crystal are usually NOT covered.
Part 3: Additional living expenses (ALE) or loss of use. This only covers temporary and extra costs to live somewhere else while your area is evacuated or your home is repaired.
It can cover temporary rental of a home, apartment, or hotel room; restaurant meals; a temporary telephone line; moving and storage; furniture rental; and laundry. It is limited to a reasonable time needed to repair the home, or for you to move to another permanent home. The limit can be from $1,500 to $25,000.
You may be able to buy building code upgrade coverage. You may also be able to buy additional coverage for limited debris removal, land restoration, and emergency repairs. The CEA Homeowners Choice policy includes $1,500 for emergency repairs, with no deductible.
How do earthquake insurance premiums vary?
Your premium depends on many things, including: the age of your home, the location, the kind of soil, the cost to rebuild, and the deductible. It also depends on the construction of your home, such as the building material, the number of stories, and the amount of retrofitting.
Homeowners Choice Policies
Beginning July 1, 2012, the new CEA Homeowners Choice policy offers several coverage options. You can choose separate coverage for dwellings and personal property, with different deductibles. You also have different choices for loss of use limits. The policy includes $1,500 for emergency repairs, with no deductible.
Common exclusions in earthquake insurance policies include: Fire, Land, Vehicles and Flood