By the Awan Insurance Team · Reviewed by Shahbaz Awan, Licensed California Insurance Agent (CA Lic #0H95098)
California earthquake insurance is never part of your homeowners policy, and the decision almost always comes down to one number people have not worked out: what a percentage deductible actually equals on their dwelling limit. Here is that arithmetic, and how the two routes compare.
California earthquake insurance is excluded from every standard homeowners policy and bought separately — through the California Earthquake Authority, sold via participating residential insurers, or the private market. CEA deductibles are 5%, 10%, 15%, 20% or 25% of the dwelling limit, with the 5% and 10% tiers unavailable above a $1,000,000 dwelling limit. Personal property is $5,000 or $25,000; loss of use runs $1,500 to $100,000.
Every California homeowners policy excludes earth movement. It will pay for fire that follows an earthquake, but not for the shaking itself — the cracked foundation, the collapsed chimney, the buckled framing. That leaves two routes, and choosing between them turns on structure rather than price.
Why Isn't Earthquake Damage on Your Home Policy?
Because every standard California homeowners policy excludes earth movement, which means earthquake coverage is always a separate purchase — and most California homes do not have it.
This surprises people every time the ground moves. Your homeowners policy covers fire, and it covers fire that follows an earthquake. What it does not cover is the shaking itself — the cracked foundation, the collapsed chimney, the buckled framing.
California created a mechanism for this precisely because the private market withdrew after the 1994 Northridge earthquake. The result is the California Earthquake Authority, a publicly managed, privately funded entity that sells through participating residential insurers, alongside a private earthquake market that has grown back considerably.
What Does a CEA Policy Cover?
The dwelling, with optional personal property, loss of use and building code upgrade coverage — and the limits are considerably more structured than a standard homeowners policy.
The CEA offers two shapes. A Standard Homeowners policy puts all coverages under a single deductible. Homeowners Choice allows separate deductibles for dwelling and personal property and lets you select which optional coverages to carry.
| Coverage | CEA limits |
|---|---|
| Coverage A — Dwelling | Must match your homeowners policy limit |
| Coverage C — Personal property | $5,000 or $25,000 under Homeowners Choice |
| Coverage D — Loss of use | $1,500 up to $100,000, in set tiers |
| Building code upgrade | Up to $10,000 standard; $20,000 or $30,000 purchasable |
| Land, pools, most detached structures | Generally not covered |
| Fire following an earthquake | Your homeowners policy |
Coverage details are published by the Source: California Earthquake Authority →. Note the loss-of-use tiers especially — a long rebuild after a significant quake is exactly when that coverage matters, and the lowest tier goes quickly.
How Does the Earthquake Deductible Actually Work?
It is a percentage of your dwelling limit rather than a flat dollar figure, which makes it much larger than most homeowners expect.
CEA deductible options run 5%, 10%, 15%, 20% or 25% of the Coverage A and B limit. Two restrictions are worth knowing before you plan around the lower tiers: the 5% and 10% options are not available where the Coverage A dwelling limit exceeds $1,000,000, or for certain older frame construction without qualifying retrofits.
On a dwelling limit of $600,000, the deductible tiers are roughly: 5% = $30,000, 10% = $60,000, 15% = $90,000, 20% = $120,000, 25% = $150,000.
That arithmetic is the whole decision. A lower deductible costs more in premium but is the difference between a policy that responds to a moderate loss and one that only responds to a catastrophic one. Work out your own figure at each tier before anyone quotes you.
Figures are illustrative and used to show how the pieces interact. They are not a quote, an estimate for your situation, or a promise of what any policy would cost or pay. Actual terms depend on underwriting and the policy issued.
CEA or the Private Market — How Do You Choose?
Compare them on deductible structure, personal property and loss-of-use limits, and whether detached structures matter to you — not on premium alone.
The CEA sells only through participating residential insurers, so availability follows your homeowners carrier. The private earthquake market has expanded since the post-Northridge withdrawal and can offer different deductible structures and higher optional limits, particularly on personal property and loss of use where the CEA tiers are fixed.
Farmers is our primary carrier, with Foremost, Bristol West and Hagerty alongside it, and through Kraft Lake — the brokerage available to Farmers agents — we can also place business with a broad panel including Mercury, Progressive, Safeco, Bamboo, SageSure, Aegis and National General. Having both routes available is what makes this a real comparison rather than a single take-it-or-leave-it quote.
The questions to hold constant across any comparison: the deductible percentage and what it equals in dollars, the personal property limit, the loss-of-use limit, building code upgrade coverage, and whether detached structures and hardscape are addressed at all.
Can Retrofitting Reduce What You Pay?
Yes — the CEA offers a hazard reduction discount for qualifying retrofits on older homes, and the same work reduces the damage you would actually sustain.
The classic qualifying work on older California housing stock is bolting the house to its foundation and bracing cripple walls — the failure mode that produced so much of the damage in past events. Homes built before the relevant code era are the ones where this matters most, and the retrofit is frequently modest work relative to the exposure it removes.
Ask your agent which retrofits your carrier's filed discount recognises and what documentation is required. As with wildfire mitigation, dated photographs and receipts are what turn completed work into a credit. Exact discount percentages and the qualifying retrofit schedule are revised periodically, so confirm both against current CEA published material at the time of quoting rather than relying on a figure you read anywhere — including here.
Earthquake sits alongside the coverage in our complete California home insurance guide, and the dwelling limit it keys off is explained in how to read your declarations page. For what drives the underlying home premium, see homeowners insurance costs in California, and our California home insurance page covers how we place it.
The Bottom Line
Earthquake coverage is never included in a California homeowners policy, and the decision turns almost entirely on the deductible. Work out what 5%, 10%, 15%, 20% and 25% of your dwelling limit actually equal in dollars before anyone quotes you — that arithmetic tells you more than any premium comparison.
Then compare the CEA against the private market on structure rather than price: deductible, personal property limit, loss of use, code upgrade, and what happens to detached structures.
If your home predates the modern code era, ask about retrofit credits in the same conversation. We can run both routes side by side, and the review costs nothing.
Related Questions
Does homeowners insurance cover earthquake damage in California?
No — every standard California homeowners policy excludes earth movement. You buy earthquake coverage separately, through the California Earthquake Authority via a participating insurer or through the private market. One nuance worth knowing: fire that follows an earthquake is covered by your homeowners policy.
What are the California Earthquake Authority deductible options?
Five tiers: 5%, 10%, 15%, 20% or 25% of your Coverage A and B limit. Two restrictions catch people out — the 5% and 10% options are unavailable where the dwelling limit exceeds $1,000,000, and for certain older frame construction without qualifying retrofits.
How much is a 10% earthquake deductible on a $600,000 home?
Sixty thousand dollars. That is the arithmetic that decides this purchase for most people, because the deductible is a percentage of your dwelling limit rather than a flat figure or a share of the claim. Run the number at every tier before anyone quotes you a premium.
What does a CEA policy not cover?
Land, pools and most detached structures generally fall outside it. The optional coverages are also capped in set tiers rather than being freely selectable — personal property at $5,000 or $25,000, loss of use from $1,500 to $100,000, and building code upgrade at $10,000 standard with $20,000 or $30,000 available.
Is private earthquake insurance better than the CEA in California?
Neither is categorically better, and premium is the wrong first question. The CEA sells only through participating insurers, so availability follows your home carrier. The private market has grown back since the post-Northridge withdrawal and can offer different deductible structures and higher optional limits. Compare them on structure, holding the deductible percentage and each optional limit constant.
Can retrofitting a house lower earthquake insurance costs?
Yes — the CEA offers a hazard reduction discount for qualifying retrofits on older homes, typically bolting the house to its foundation and bracing cripple walls. That is also the work that reduces the damage you would actually sustain. Confirm the current discount schedule and documentation requirements when quoting; they are revised periodically.
Last reviewed September 2026 by Shahbaz Awan, Licensed California Insurance Agent (CA Lic #0H95098). Coverage shapes, deductible tiers, personal property, loss of use and building code upgrade limits cited inline from the California Earthquake Authority published policy material. Retrofit discount percentages and qualifying schedules are revised periodically and are marked for verification at time of quoting. Availability and terms are subject to underwriting and the policy issued. General information, not advice about your specific policy.