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CEA Homeowners Policy Coverages & Deductibles


You might be surprised to discover how flexible and budget-friendly earthquake insurance can be. CEA offers a variety of coverage choices and deductible options for your customers.

CEA is not-for-profit. Our insurance rates are based on the best available science and research, not profit.

Use the CEA premium calculator to help your customer get an insurance cost estimate.

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Sign-up for a self-directed online training, private in-person training, or an instructor-led webinar and be eligible for two free CE credits.

Coverage options for homeowners*

Our earthquake insurance for homeowners allows your customer to choose between two policies – either purchase all of their coverages together under one deductible, or choose to have separate deductibles for the dwelling and personal property. With many coverage limits and deductibles to choose from, you can help your customer find a policy to fit their needs and budget.

Coverages Standard Homeowners Homeowners Choice Additional Information
Home (dwelling)

Included

Included

 Covers earthquake damage to your customer's home and certain structures attached to it, like their attached garage.

Coverage Limits

Same as the companion homeowners insurance policy

 Same as the companion homeowners insurance policy Your customer's home is covered up to the Dwelling’s insured value on their homeowners insurance policy. For example, if their home insurance value is $200,000, their earthquake insurance coverage will be the same amount.

Deductible

 5%-25% 5%-25%

Deductible options are 5%, 10%, 15%, 20% and 25% of the Dwelling (Home) coverage. Homes with a Coverage A dwelling limit greater than $1,000,000, or dwellings built before 1980 on a raised or other type foundation that do not have a verified retrofit, are only eligible for a 15%, 20% or 25% deductible.

Claim-payment example:

  • If your customer's Dwelling is insured for $500,000, and
  • They have purchased a 5% ($25,000) deductible, and
  • An earthquake causes $80,000 in covered damage, then
  • Their claim payment would be $55,000 (their covered loss, less their deductible, up to the limit of insurance purchased).
Personal Property Included

Optional

 Covers damage to your customer's belongings, like TVs and furniture.

Coverage Limits

Up to $25,000

Up to $25,000

Available in limits of $5,000 or $25,000.

Deductible

Included under the Dwelling deductible—no Personal Property losses can be paid unless Dwelling loss exceeds the policy’s deductible.

5%-25%

The Homeowners Choice policy offers Personal Property coverage deductibles of 5%-25%.

This deductible is separate from the dwelling deductible, which may allow your customer to receive a personal property claim payment even if the damage doesn't meet the dwelling deductible. And, if the dwelling deductible is met, the personal property deductible is waived.

Homeowners Choice claim-payment example:

  • If your customer's dwelling is insured for $500,000 with a 10% deductible ($50,000), and
  • They have personal property covered for $25,000 with a 5% deductible ($1,250), and
  • An earthquake causes damage to the dwelling that is less than the dwelling deductible, but there is also $20,000 in personal property damage, then
  • Although their dwelling deductible is not met, their separate personal property deductible allows them to receive $18,750!
    • This payment is the difference between the covered damage to personal property ($20,000), less the deductible ($1,250).
Loss of Use Included

Optional

Covers additional living expenses if your customer needs to live and eat elsewhere because earthquake damage or a civil authority prevents them from residing in their home. If their dwelling is held for rent, loss of use (fair rental value) is covered.

Coverage Limits

 Up to $100,000 Up to $100,000 Available in limits of $1,500, $10,000, $15,000, $25,000, $50,000, $75,000 and $100,000.
Deductible None None

There is never a deductible for Loss of Use.

Building Code Upgrade

 Included Included Local authorities often require that rebuilding or significant repair work be performed in a manner consistent with current building codes (not the codes that were in effect when the property was built). This coverage helps pay expenses associated with code-compliant rebuilding or repairs.

Coverage Limits

$10,000 included, $20,000 and $30,000 optional

$10,000 included, $20,000 and $30,000 optional

 All CEA homeowners policies include $10,000 in building code upgrade coverage. Your customer can also choose to raise the coverage to $20,000 or $30,000.

Deductible

Paid after the dwelling deductible is met

Paid after the dwelling deductible is met

Once your customer's covered dwelling damage exceeds the deductible, they could be eligible for payment for Building Code Upgrades, up to their chosen limit.

Emergency Repairs

Included

Included

Covers earthquake-damage repairs that are needed to protect your customer's house or personal property from further damage (examples: repair broken windows or remove broken glass).

Coverage Limits

Up to 5% of homeowners and Personal Property limit

Up to 5% of homeowners and Personal Property limit

For example, if your customer's house is insured for $200,000 and an earthquake strikes causing $80,000 in damage, they have up to 5% ($10,000) in Emergency Repairs coverage to make their house safe to live in.

Deductible

First $1,500 has no deductible

First $1,500 has no deductible

Emergency Repairs provide coverage up to 5% of dwelling and 5% of the personal property limit. The first $1,500 is not subject to the deductible.

Breakables

 

 

 Within policy terms, covers glassware, crystal, china, ceramic, pottery, porcelain, or marble items that are broken because of an earthquake. Available for new and renewal policies written on or after January 1, 2025.

Exterior Masonry Veneer

    

Not available for new policies written on or after August 1, 2023 and renewals on or after November 1, 2023.

We encourage you to read the entire CEA policy—and its policy declarations page—to understand coverages and how they work. Exclusions and special limits apply. All terms and conditions of CEA insurance coverage are found in the CEA insurance-policy form. Refer to a sample policy, below.

Ready to learn more? Take a free agent training course. Once you pass, you’ll earn 2 CE credits.

*Reflects policy option changes that went into effect for new policies written on or after August 1, 2023 and for renewals on or after November 1, 2023. These changes include Dwelling Deductible Options (Coverage A), Personal Property Limits (Coverage C), Breakables, and Exterior Masonry Veneer. Learn more about our 2023 Policy Option Changes.

Coverage options for homeowners*

Our earthquake insurance for homeowners allows your customer to choose between two policies – either purchase all of their coverages together under one deductible, or choose to have separate deductibles for the dwelling and personal property. With many coverage limits and deductibles to choose from, you can help your customer find a policy to fit their needs and budget.

Coverages Standard Homeowners Homeowners Choice Additional Information
Home (dwelling)

Included

Included

 Covers earthquake damage to your customer's home and certain structures attached to it, like their attached garage.

Coverage Limits

Same as the companion homeowners insurance policy

 Same as the companion homeowners insurance policy Your customer's home is covered up to the Dwelling’s insured value on their homeowners insurance policy. For example, if their home insurance value is $200,000, their earthquake insurance coverage will be the same amount.

Deductible

 5%-25% 5%-25%

Deductible options are 5%, 10%, 15%, 20% and 25% of the Dwelling (Home) coverage. Homes with a Coverage A dwelling limit greater than $1,000,000, or dwellings built before 1980 on a raised or other type foundation that do not have a verified retrofit, are only eligible for a 15%, 20% or 25% deductible.

Claim-payment example:

  • If your customer's Dwelling is insured for $500,000, and
  • They have purchased a 5% ($25,000) deductible, and
  • An earthquake causes $80,000 in covered damage, then
  • Their claim payment would be $55,000 (their covered loss, less their deductible, up to the limit of insurance purchased).
Personal Property Included

Optional

 Covers damage to your customer's belongings, like TVs and furniture.

Coverage Limits

Up to $25,000

Up to $25,000

Available in limits of $5,000 or $25,000.

Deductible

Included under the Dwelling deductible—no Personal Property losses can be paid unless Dwelling loss exceeds the policy’s deductible.

5%-25%

The Homeowners Choice policy offers Personal Property coverage deductibles of 5%-25%.

This deductible is separate from the dwelling deductible, which may allow your customer to receive a personal property claim payment even if the damage doesn't meet the dwelling deductible. And, if the dwelling deductible is met, the personal property deductible is waived.

Homeowners Choice claim-payment example:

  • If your customer's dwelling is insured for $500,000 with a 10% deductible ($50,000), and
  • They have personal property covered for $25,000 with a 5% deductible ($1,250), and
  • An earthquake causes damage to the dwelling that is less than the dwelling deductible, but there is also $20,000 in personal property damage, then
  • Although their dwelling deductible is not met, their separate personal property deductible allows them to receive $18,750!
    • This payment is the difference between the covered damage to personal property ($20,000), less the deductible ($1,250).
Loss of Use Included

Optional

Covers additional living expenses if your customer needs to live and eat elsewhere because earthquake damage or a civil authority prevents them from residing in their home. If their dwelling is held for rent, loss of use (fair rental value) is covered.

Coverage Limits

 Up to $100,000 Up to $100,000 Available in limits of $1,500, $10,000, $15,000, $25,000, $50,000, $75,000 and $100,000.
Deductible None None

There is never a deductible for Loss of Use.

Building Code Upgrade

 Included Included Local authorities often require that rebuilding or significant repair work be performed in a manner consistent with current building codes (not the codes that were in effect when the property was built). This coverage helps pay expenses associated with code-compliant rebuilding or repairs.

Coverage Limits

$10,000 included, $20,000 and $30,000 optional

$10,000 included, $20,000 and $30,000 optional

 All CEA homeowners policies include $10,000 in building code upgrade coverage. Your customer can also choose to raise the coverage to $20,000 or $30,000.

Deductible

Paid after the dwelling deductible is met

Paid after the dwelling deductible is met

Once your customer's covered dwelling damage exceeds the deductible, they could be eligible for payment for Building Code Upgrades, up to their chosen limit.

Emergency Repairs

Included

Included

Covers earthquake-damage repairs that are needed to protect your customer's house or personal property from further damage (examples: repair broken windows or remove broken glass).

Coverage Limits

Up to 5% of homeowners and Personal Property limit

Up to 5% of homeowners and Personal Property limit

For example, if your customer's house is insured for $200,000 and an earthquake strikes causing $80,000 in damage, they have up to 5% ($10,000) in Emergency Repairs coverage to make their house safe to live in.

Deductible

First $1,500 has no deductible

First $1,500 has no deductible

Emergency Repairs provide coverage up to 5% of dwelling and 5% of the personal property limit. The first $1,500 is not subject to the deductible.

Breakables

 

 

 Not available for new policies written on or after August 1, 2023 and renewals on or after November 1, 2023.

Exterior Masonry Veneer

    

Not available for new policies written on or after August 1, 2023 and renewals on or after November 1, 2023.

We encourage you to read the entire CEA policy—and its policy declarations page—to understand coverages and how they work. Exclusions and special limits apply. All terms and conditions of CEA insurance coverage are found in the CEA insurance-policy form. Refer to a sample policy, below.

Ready to learn more? Take a free agent training course. Once you pass, you’ll earn 2 CE credits.

* Reflects policy option changes that went into effect for new policies written on or after August 1, 2023 and for renewals on or after November 1, 2023. These changes include Dwelling Deductible Options (Coverage A), Personal Property Limits (Coverage C), Breakables, and Exterior Masonry Veneer. Learn more about our 2023 Policy Option Changes.