Short answer: no. A standard homeowners policy does not cover earthquake damage. You need separate earthquake insurance.
In Northridge, we don’t need to explain why that matters. Many of our clients remember January 17, 1994. Here’s how earthquake insurance in Los Angeles works today.
Your homeowners insurer has to offer it
If you have homeowners insurance in California, your insurer must offer you earthquake coverage. It has to make that offer in writing every other year, with the limits, deductible, and price. You have 30 days to accept. If you don’t reply, that counts as a no.
That letter is easy to toss. Don’t.
Option 1: The California Earthquake Authority (CEA)
The CEA provides most of the earthquake insurance in California. A few things to know:
- You buy it through your home insurer. You can’t buy directly from CEA. You buy it from the participating company that writes your homeowners policy.
- Deductibles are a percentage. Choices run 5%, 10%, 15%, 20%, or 25% of your dwelling limit. Homes with a dwelling limit over $1 million, and some pre-1980 homes on raised foundations without a verified retrofit, start at 15%.
- Some things aren’t covered. Landscaping, pools, fences, and detached structures are usually left out.
- Retrofit can help. CEA offers a mitigation discount for qualifying retrofits.
- On the FAIR Plan? FAIR Plan customers can get earthquake coverage through CEA.
Option 2: Private earthquake policies
CEA isn’t the only choice. Some private insurers write earthquake coverage on their own. These policies may offer different deductibles or limits. Terms vary a lot, so compare carefully. We can shop options for your home.
What to check before you buy
- What is the deductible in dollars, not just percent? 15% of $800,000 is $120,000.
- Does it cover loss of use if you can’t live at home?
- Is there coverage for your belongings, and how much?
- Does it pay to bring your home up to current building code?
- Has your home been retrofitted? Do you have the paperwork?
FAQ
Does my homeowners policy cover fire after an earthquake?
Fire following an earthquake is generally covered by your homeowners or FAIR Plan fire policy, not the earthquake policy.
Do renters need earthquake insurance?
CEA offers renters policies for belongings and loss of use.
Can I add earthquake coverage any time?
With CEA, you can add it without waiting for renewal.
Want to see your earthquake options next to your home policy? Get a quote at personal.panorama-ins.com or call (818) 781-6630.
