Standard homeowners insurance does not cover earthquake damage
California homeowners policies — HO-3, HO-5, and most dwelling forms — specifically exclude earth movement, including earthquake shaking. Damage to the structure, contents, and temporary living costs after an earthquake all require separate earthquake coverage.
Only about 12–13% of California homeowners carry earthquake insurance, according to CDI data. That gap leaves most homes entirely uninsured for one of the state's most consequential perils.
The four coverage parts that matter most
- Dwelling (Coverage A): Covers earthquake damage to the home's structure, subject to the deductible and selected limit. Most policies match this to the homeowners Coverage A value.
- Personal property (Coverage C): Covers contents damaged by earthquake — furniture, electronics, appliances. May have a separate sublimit and deductible depending on policy form.
- Loss of use / ALE: Covers additional living expenses while the home is uninhabitable — hotel, meals, temporary rent. Critical after a major regional event when contractors are overwhelmed.
- Building code upgrade (BCU): Covers the cost difference when repairs must meet current code. California's strict seismic code requirements frequently increase repair costs beyond the damage amount.
Who writes earthquake insurance in California
The California Earthquake Authority (CEA) is the largest provider, writing through participating homeowners insurers. Private market options include Covwell, ICW Group, Palomar Specialty, GeoVera, Munich Re EQ, QBE, and AXIS Capital. Each carrier has different appetite, deductible options, form terms, and pricing.
An independent broker can access multiple markets and match your property to the carrier most likely to offer favorable terms. That matters especially for pre-1980 homes, masonry construction, hillside properties, and higher-value homes.
How California earthquake insurance is priced
Residential earthquake policies typically use percentage deductibles — 5%, 10%, 15%, 20%, or 25% of the insured dwelling limit. On a $700,000 home with a 15% deductible, the deductible is $105,000 before coverage responds. Premium is influenced by county risk tier, construction, foundation, year built, retrofit status, slope, masonry, and prior loss history.
The CDI's most recent residential earthquake study reports a statewide average premium of $885.96 per year and a base rate of approximately $1.57 per $1,000 of insured value. That baseline is adjusted heavily by the factors above — a pre-1980 raised-foundation home in the Hayward Fault corridor can price significantly above the state average.
How location shapes the conversation
California's fault systems create significant geographic variation in earthquake risk. High-risk counties include Los Angeles (San Andreas, Newport-Inglewood), Alameda and Santa Clara (Hayward Fault), Humboldt (Cascadia), San Bernardino (San Andreas, San Jacinto), and San Francisco (liquefaction, soft soils, San Andreas/Hayward regional shaking).
Even lower-risk counties require the same application detail — construction, foundation, retrofit, and prior damage can move any property's pricing significantly regardless of county tier.
Browse all California county pages → Each one covers the specific faults beneath that county, the soils and slopes, the building stock actually standing on it, and what a buyer there should do before applying.
Los Angeles County · Orange County · San Diego County · Riverside County · San Bernardino County · Ventura County · Santa Barbara County · San Luis Obispo County · Kern County · Imperial County · San Francisco · San Mateo County · Santa Clara County · Alameda County · Contra Costa County · Marin County · Sonoma County · Napa County · Solano County · Santa Cruz County · Monterey County · Humboldt County · Sacramento County · San Joaquin County · Fresno County
Fault corridors that cross county lines: San Andreas Fault · Hayward Fault.
How to get from indication to bindable coverage
The Best Earthquake Insurance application gives you a preliminary annual range anchored to CDI rate data, then fills a Covwell residential earthquake application. The completed PDF is submitted to Bollinsure for broker review — a licensed California broker who shops the market, reviews your retrofit documentation, and turns the indication into bindable options.
Final coverage is subject to carrier underwriting, eligibility, and policy terms. The indication is a starting point, not a binding offer.