Here's something that surprises most California homeowners: your regular home insurance policy won't cover earthquake damage. Not a penny of it. And yet, only about 13% of Californians have earthquake insurance—despite living in a state that experiences 90% of all earthquakes in the United States. If you've been putting off this decision, you're not alone. But understanding your options doesn't have to be complicated.
California earthquake insurance is a separate policy designed specifically to protect your home and belongings from earthquake damage. Most policies come through the California Earthquake Authority (CEA), a publicly managed organization that partners with insurance companies to provide affordable coverage. Let's break down what you need to know.
What Does Earthquake Insurance Actually Cover?
A standard CEA earthquake policy includes three main components. First, there's dwelling coverage (Coverage A), which pays to repair or rebuild your home's structure—the walls, roof, foundation, and built-in appliances. This is your most important coverage, and it should match your home's full replacement cost.
Second, personal property coverage (Coverage C) protects your belongings—furniture, electronics, clothing, and other items inside your home. The basic policy starts at just $5,000, which honestly won't go very far if you need to replace everything. You can increase this to $25,000, and most people should. As of 2025, CEA policies also include a $500 sub-limit for breakable items like dishes and glassware at no extra cost.
Third, additional living expenses (ALE) coverage pays for temporary housing, meals, and other costs if your home becomes uninhabitable after an earthquake. If you're displaced for months while repairs are underway, this coverage keeps you from draining your savings on hotel rooms and restaurant meals.
Here's a nice feature: CEA policies include the first $1,500 for emergency repairs with no deductible. That means you can start boarding up broken windows or preventing further water damage immediately, without worrying about whether it'll count toward your deductible. You can also purchase building code upgrade coverage (up to $30,000) to bring your home up to current building standards if it's required during reconstruction.
Understanding Earthquake Insurance Deductibles
This is where earthquake insurance differs dramatically from your regular homeowners policy. Instead of a flat deductible like $1,000 or $2,500, earthquake insurance uses percentage-based deductibles ranging from 5% to 25% of your dwelling coverage amount. Yes, you read that correctly—percentage-based.
Let's put that in real numbers. If your home is insured for $500,000 and you choose a 15% deductible, you'll pay the first $75,000 of repairs out of pocket before your insurance kicks in. That's a significant amount, which is why earthquake insurance is really designed for catastrophic damage, not minor repairs.
CEA offers deductibles of 5%, 10%, 15%, 20%, and 25%, with two important exceptions. If your home is valued over $1 million, or if it was built before 1980 on a raised foundation and hasn't been seismically retrofitted, your minimum deductible will be 15%. These restrictions exist because older, high-value homes face greater risk and potential losses.
Choosing your deductible is a balancing act. A lower deductible means higher premiums but more protection if disaster strikes. A higher deductible keeps your premiums affordable but requires you to have substantial savings set aside. Most experts recommend choosing the highest deductible you could realistically afford to pay, then keeping those funds readily accessible in a separate emergency account.
How Much Does Earthquake Insurance Cost in California?
The average California homeowner pays about $739 annually for earthquake insurance, but your actual cost could range from $500 to $5,000 depending on several key factors. In January 2025, CEA implemented a 6.8% rate increase, adding about $70 per year for most policyholders.
Location is your biggest cost factor. If you live near a major fault line like the San Andreas, expect to pay more. San Francisco homeowners pay an average of $1,927 annually, while San Diego residents pay around $1,739. Some high-risk areas like Irvine can see premiums approaching $5,000.
Your home's age and construction type also matter significantly. Older homes and those built with less earthquake-resistant materials cost more to insure. A wood-frame house typically costs less to insure than an unreinforced masonry building. Homes built before modern building codes took effect face higher premiums due to increased vulnerability.
Your coverage limits and deductible choices directly impact your premium. Higher dwelling coverage costs more, naturally. Choosing a lower deductible also increases your premium—sometimes substantially. The good news? CEA offers a free premium calculator on their website where you can experiment with different coverage levels and deductibles to find a balance that works for your budget.
The Retrofit Advantage: Save Money and Protect Your Home
If you own an older home, seismic retrofitting offers a double benefit: it makes your home significantly safer during an earthquake, and it can earn you up to a 25% discount on your earthquake insurance premium. That discount can add up to hundreds of dollars annually.
Seismic retrofitting typically involves bolting your house to its foundation and bracing cripple walls (those short walls between your foundation and first floor). For homes built before modern building codes, these relatively simple upgrades dramatically improve their ability to withstand earthquake forces.
To qualify for the CEA retrofit discount, you'll need to meet specific requirements. Your cripple walls must be braced according to California Existing Building Code standards, and your water heater must be properly secured to the building frame. A licensed contractor or engineer must complete a CEA Dwelling Retrofit Verification form documenting that the work meets requirements.
Even better, the CEA's Brace + Bolt program offers grants to help cover retrofit costs for eligible homeowners. These grants can significantly offset your upfront investment, making retrofitting more accessible. Check if your home qualifies—it's one of the smartest investments you can make for both safety and insurance savings.
How to Get Earthquake Insurance
You can't buy earthquake insurance directly from the California Earthquake Authority—you purchase it through insurance companies that participate in the CEA program. Here's the catch: you must buy your earthquake policy from the same company that provides your homeowners insurance. You also need to have an active homeowners policy in place first.
Start by contacting your current home insurance company and asking about their CEA earthquake insurance options. They'll walk you through coverage choices, deductible options, and pricing. You can also explore private earthquake insurance from companies that offer their own policies outside the CEA program, though these are often more expensive.
Before you commit, use the CEA's premium calculator to get estimates and compare different coverage scenarios. Think carefully about how much personal property coverage you need—walk through your home and mentally tally what it would cost to replace everything. Consider whether you could afford your chosen deductible if a major earthquake hit tomorrow. And remember, you can't buy earthquake insurance immediately after a tremor—there's typically a 30-day waiting period before coverage takes effect.
Living in California means accepting earthquake risk as part of daily life. While you can't control when or where the next big quake will strike, you can control whether you're financially prepared. Earthquake insurance isn't cheap, and those high deductibles mean you'll still face significant out-of-pocket costs. But for most California homeowners, having that catastrophic coverage provides invaluable peace of mind. Talk to your insurance agent today to explore your options and find coverage that fits your situation.
