Earthquake insurance is a separate policy that pays to repair your home and replace your belongings after an earthquake, because a standard homeowners policy excludes earthquake damage (California Department of Insurance). In California, most homeowners buy it through the California Earthquake Authority (CEA), which sells policies through participating home insurance companies, and deductibles run from 5% to 25% of your dwelling coverage (California Earthquake Authority).
Only a small share of Californians carry it. Estimates generally land between about 10% and 16% of insured homeowners (United Policyholders; Wikipedia summary of CEA data). Here’s how it works, so you can decide whether it’s worth it for your home.
⚠️ Scope note: This guide explains how earthquake insurance generally works for owner-occupied homes in California, with a focus on CEA policies. It doesn’t cover condo unit, renters, mobile home, or commercial earthquake policies in detail, and it isn’t a quote. Coverage, deductibles, and prices depend on your home and insurer. Talk with a licensed agent before you buy or drop coverage.
Does homeowners insurance cover earthquakes?
No. Earthquake is a standard exclusion in California homeowners policies, along with other earth movement like landslides and settling (California Department of Insurance).
There’s one important exception. Most homeowners policies do cover a fire or explosion that follows an earthquake (California Department of Insurance). So if the shaking breaks a gas line and the house burns, the fire damage is generally covered by your homeowners policy. The cracked foundation and collapsed chimney from the shaking itself are not.
| Damage after an earthquake | Homeowners policy | Earthquake policy |
| Cracked foundation, walls, or chimney from shaking | Excluded | Covered, after the deductible |
| Belongings broken by shaking | Excluded | Covered, up to the personal property limit |
| Fire caused by the earthquake | Usually covered | Not needed |
| Hotel and meals while the home is repaired | Excluded for quake damage | Covered under loss of use, no deductible on CEA policies |
| Landslide triggered by the quake | Excluded | Depends on the policy wording |
Sources: CDI; California Earthquake Authority.
What is the California Earthquake Authority?
The California Earthquake Authority (CEA) is a publicly managed, privately funded organization created in 1996 after the Northridge earthquake. It doesn’t sell directly to you; its policies are offered through participating residential insurance companies (Wikipedia summary of CEA; California Earthquake Authority).
California law also requires home insurers to offer earthquake coverage. If you turn it down, your insurer must offer it again every other year when your policy renews (Cal. Ins. Code § 10083). That’s the earthquake notice you may have tossed in the recycling.
What does earthquake insurance cover?
How a CEA homeowners earthquake policy works
- Claim: A CEA homeowners policy covers your dwelling, personal property, loss of use, emergency repairs, and building code upgrades, with a deductible you choose between 5% and 25% of your dwelling limit.
- Context: The dwelling limit must match the dwelling limit on your homeowners policy, so the deductible is a percentage of a large number. On a $500,000 dwelling limit, a 15% deductible means you pay the first $75,000 of dwelling damage.
- Evidence/source: Coverage options and deductible range (California Earthquake Authority).
- Takeaway: Pick your deductible based on how much you could actually pay out of pocket after a major quake.
Here’s what each part of a CEA homeowners policy does:
| Coverage | What it pays for | CEA limits and rules |
| Dwelling (Coverage A and B) | Repairing or rebuilding the house and attached structures | Must match your homeowners dwelling limit; deductible of 5% to 25% |
| Personal property (Coverage C) | Furniture, electronics, clothing, and other belongings | $5,000 or $25,000; includes $500 for some breakables |
| Loss of use (Coverage D) | Hotel, meals, and other extra living costs while you can’t live at home | $1,500 to $100,000, with no deductible |
| Emergency repairs | Work to prevent more damage right after the quake | First $1,500 paid with no deductible |
| Building code upgrades | Bringing repairs up to current code | $10,000 included; $20,000 or $30,000 available |
Source: California Earthquake Authority.
A couple of details matter here. The 5% and 10% deductibles aren’t available if your dwelling limit is over $1 million, or for older pre-1980 wood-frame homes on raised foundations that haven’t been retrofitted. CEA’s “Homeowners Choice” option lets you buy dwelling-only coverage or set separate deductibles for your house and belongings (California Earthquake Authority).
Standard vs. Choice: which CEA policy fits?
| Criteria | Standard Homeowners | Homeowners Choice |
| Deductible | One deductible for all coverages | Separate deductibles for dwelling and personal property |
| Personal property and loss of use | Included | Optional |
| Dwelling-only option | No | Yes |
| Good fit for | Simplicity; one decision | Lowering the premium by covering only the house, or customizing |
Source: California Earthquake Authority.
How much does earthquake insurance cost?
It depends on where you live, how old your home is, what it’s built from, the foundation type, and the deductible you choose. The most reliable way to get a number is CEA’s online Premium Calculator or a quote from your home insurance agent (California Earthquake Authority).
Here’s the part that surprises a lot of people: a lower deductible can raise your premium a lot, and a higher deductible means a smaller earthquake might not reach it at all. That’s not a reason to skip coverage. It’s a reason to think of earthquake insurance as protection against losing the house, not against a few cracked tiles.
How can I lower my earthquake insurance cost?
Retrofit an older home. CEA offers a premium discount of up to 25% for qualifying homes with a completed and verified brace and bolt retrofit (California Earthquake Authority).
You may be able to get help paying for it, too. The Earthquake Brace + Bolt program offers grants of up to $3,000 for qualified homeowners in select higher-risk ZIP codes, and you don’t have to be a CEA policyholder. Income-eligible homeowners, with household income of $87,360 or less, may qualify for a supplemental grant that, combined with other grants, can cover up to 100% of the retrofit (California Earthquake Authority). The brace and bolt retrofit applies to homes built before 1980 with a raised foundation.
Other ways to manage the cost:
- Choose a higher deductible if you could cover it from savings.
- Use Homeowners Choice to buy dwelling-only coverage if your main worry is rebuilding the house.
- Compare quotes for private earthquake policies through an independent agent, especially for higher-value homes.
Do I need earthquake insurance in Northern California?
If you’d struggle to rebuild without it, it’s worth a serious look. The U.S. Geological Survey’s latest study puts the chance of a magnitude 6.7 or larger earthquake in the Bay Area within 30 years at 74%, up from 72% (ABC7, Sept. 2026).
Sacramento isn’t the Bay Area, and its shaking risk is generally lower. But a large Bay Area quake can still affect the wider region, and your answer depends on more than the odds:
| Ask yourself | Leans toward buying | Leans toward skipping |
| Could you rebuild from savings? | No | Yes, comfortably |
| Do you have a large mortgage? | Yes; you’d still owe it on a damaged house | Little or no mortgage and other resources |
| Is the home older, on a raised foundation, or not retrofitted? | Yes | Newer, retrofitted, on a slab |
| How close are you to a major fault? | Bay Area, near the Hayward or San Andreas fault | Farther from major faults |
Here’s what most people miss: a mortgage doesn’t go away when the house is damaged. Federal disaster aid, when it’s available, often comes as a loan you have to repay (FEMA via Los Angeles County Public Works).
How to buy earthquake insurance
- Check your current policy. Confirm the earthquake exclusion and find your dwelling limit, since a CEA dwelling limit has to match it.
- Get a CEA estimate. Use CEA’s Premium Calculator to see prices at different deductibles.
- Ask your home insurance company or agent for a quote. If your insurer participates in CEA, it can write the policy for you.
- Compare private options. An independent agent can check private earthquake policies, which may offer different limits or deductibles.
- Choose your deductible honestly. Pick one you could actually pay after a major quake.
- Look into a retrofit. If your home was built before 1980 on a raised foundation, check Brace + Bolt eligibility and the up-to-25% CEA discount.
- Revisit it at renewal. Your insurer has to re-offer coverage every other year if you decline.
Common mistakes to avoid
- Assuming homeowners insurance covers earthquakes. It doesn’t, except for fire that follows.
- Only looking at the premium. A cheap policy with a deductible you can’t afford doesn’t help much.
- Forgetting loss of use. Hotel and meals during repairs add up fast, and CEA pays that part with no deductible.
- Skipping the retrofit discount. An older raised-foundation home can save up to 25% on CEA premiums with a verified retrofit.
- Tossing the earthquake offer letter. Read it; it lists your options and estimated premium.
Frequently asked questions
Question: Does homeowners insurance cover earthquake damage in California? Answer: No. Earthquake is a standard exclusion. Most homeowners policies do cover a fire or explosion that follows an earthquake (California Department of Insurance).
Question: What’s the deductible on earthquake insurance? Answer: CEA deductibles range from 5% to 25% of your dwelling coverage limit. The 5% and 10% options aren’t available above a $1 million dwelling limit or for some older homes without a retrofit (California Earthquake Authority).
Question: Does earthquake insurance pay for a hotel if I can’t live at home? Answer: Yes. CEA loss of use coverage ranges from $1,500 to $100,000 and has no deductible (California Earthquake Authority).
Question: Can I get a discount on earthquake insurance? Answer: Yes. CEA offers up to 25% off for qualifying homes with a verified brace and bolt retrofit, and Brace + Bolt grants of up to $3,000 can help pay for the work (California Earthquake Authority).
Question: Can I buy earthquake insurance right after a quake? Answer: Insurers often pause new earthquake policies for a period after a significant quake. Ask your agent now rather than waiting.
The bottom line
Homeowners insurance doesn’t cover earthquakes, so if you’d struggle to repair or rebuild after a big one, earthquake insurance is worth pricing out. Most Californians buy it through the CEA via their home insurance company, with a deductible from 5% to 25%. Older homes can cut the cost with a retrofit and grants. Get a quote, choose a deductible you could really pay, and decide before the ground decides for you.
Brandon Erickson | IVMG LLC
With 7 years of experience writing insurance content, I specialize in creating clear, informative, and engaging articles that help consumers better understand auto, home, and other types of insurance. My writing focuses on answering real customer questions, simplifying complex insurance topics, and creating useful content that performs well in search engines while providing genuine value to readers.
Last updated: October 2026 | Next review: Quarterly
Disclaimer: This content is for general informational purposes only and is not insurance, legal, or financial advice. Brandon Erickson is not a licensed insurance agent. Please speak with a licensed insurance agent about any questions regarding your coverage. Eugene C. Yates agents can be contacted at 916-313-6100.