Here’s a fact that surprises many California homeowners: your homeowners policy does not cover earthquake damage. Not the house, not your belongings, not your hotel bill while repairs are made. Earthquake coverage is a separate policy, and only a small share of California homeowners have it.
Here’s how earthquake insurance works in California, what it costs you after a quake, and how to decide if it’s right for you.
How earthquake insurance works in California
- It’s separate. Earthquake coverage is either a separate policy or an endorsement. Most California earthquake policies are written through the California Earthquake Authority (CEA), a publicly managed, privately funded organization, and sold through participating insurers. Some private carriers offer their own earthquake policies too.
- Insurers must offer it. California requires companies that sell homeowners insurance to offer earthquake coverage. Many people decline it without understanding it.
- It’s not the FAIR Plan’s job. The FAIR Plan doesn’t cover earthquake, so FAIR Plan homeowners need a separate earthquake policy too.
The big thing to understand: the deductible
Earthquake deductibles are a percentage of your dwelling limit, not a flat dollar amount. CEA policies offer deductibles of 5%, 10%, 15%, 20% or 25%. Homes with a dwelling limit over $1 million, and pre-1980 homes on raised foundations without a verified retrofit, can choose only 15%, 20% or 25%.
A large deductible doesn’t make earthquake insurance worthless. It’s built for the big one, the kind of damage that could cost far more than the deductible to repair or rebuild. Without it, you’d pay for all of it yourself, on top of your mortgage.
What a CEA policy covers
- Dwelling: repairs or rebuilds your home after the deductible.
- Personal property: optional, in several limit choices.
- Loss of use: pays additional living expenses if you can’t live at home. There’s no deductible on this coverage.
- Building code upgrade: helps with the cost of meeting current codes when you repair.
- Emergency repairs: the first $1,500 of emergency repairs isn’t subject to the deductible.
Lower your premium with a retrofit
If you own an older home on a raised foundation, a seismic retrofit that bolts the house to its foundation and braces the crawl space walls can make it much safer, and can earn a CEA premium discount of up to 25%. The Earthquake Brace + Bolt program, from the CEA and the state’s Office of Emergency Services, offers grants toward retrofit costs in eligible ZIP codes. You don’t need to be a CEA policyholder to apply.
Is earthquake insurance right for you?
Ask yourself these questions:
- Could you afford to rebuild or repair your home without help? If not, earthquake coverage protects your biggest asset.
- How much equity do you have? Your mortgage doesn’t go away if the home is damaged.
- How old is your home, and what’s it built on? Older homes on raised foundations, and homes with brick chimneys, can be more vulnerable.
- Where do you live? The Sierra foothills generally have lower earthquake risk than the Bay Area or Southern California, but no part of California is risk-free, and the Tahoe region has active faults.
Earthquake vs. flood: two gaps to know
Like earthquake, flood and mudflow aren’t covered by a standard California homeowners policy either. If you live below a burn scar or near a creek, read about flood coverage in Fall Home Prep for California Homeowners.
Let’s look at your earthquake options
We’ll quote earthquake coverage at several deductible levels so you can see the real trade-off. Book a 30-minute review with me or request a free quote. Current clients with questions about an existing policy or renewal can reach our service team at team@gold.insure.
Specialists in California’s wildland-urban interface, where homes meet forest, brush and grassland.
Phil Irwin, President, Gold Insurance Solutions. CA License #6000540. General information as of October 2026, not legal advice. Coverage and pricing vary by carrier and home.