CEA is required by law to adjust its rates as needed so that they remain actuarially sound, using the best available science. Any rate or policy changes must be reviewed and approved by the CEA Governing Board and the California Department of Insurance.
The California Department of Insurance and CEA’s Governing Board have approved two changes and one clarification, described below, that will go into effect for new and renewal policies issued on or after January 1, 2025.
Changes
- All policies will include a CEA rate increase of 6.8%.
- The average annual dollar impact will be less than $10 for renters and about $70 for homeowners—but some policyholders may see actual costs higher or lower than the average.
- New and renewal policies that include personal property coverage will include a $500 sub-limit for certain breakable items of personal property at no additional cost.
- This update means that policyholders who choose Personal Property coverage (Coverage C), will now be covered for up to $500 worth of damage to breakable items such as glassware, pottery, crystal, china, ceramics, porcelain, or marble, etc.
Policy Clarification
CEA is making a clarification related to roofing materials. The clarification identifies that:
- Solar shingles have always been, and continue to be, included in the same rating category as slate and tile (aka, heavier roof types). Roof types are a factor when determining a policy premium, as heavier roof types can increase the likelihood of damage to the home during an earthquake.
Notably, solar panels mounted on a roof are not the same as solar shingles. Mounted solar panels on a roof are rated based on the underlying roof material. For example, if solar panels were mounted on a composition roof (which is a lighter roof type), the roof would be rated as a composition roof when determining the policy premium.
If you have any questions about these changes, please Contact Us .
Premium Discounts for Retrofitted Homes
CEA encourages owners of all vulnerable houses to consider a seismic retrofit to make their homes stronger and more resistant to earthquake damage.
These projects can sometimes be done in a day or two and can be inexpensive—especially when compared to the costs of rebuilding a home that has been severely damaged in an earthquake.
CEA urges all Participating Insurer agents to tell their CEA policyholders with qualifying older homes that have been properly retrofitted that they may be eligible for a premium discount of up to 25% on their CEA policy premium.