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Home Insurance
About Insurance from the CEA
The California Earthquake Authority is a privately funded but publicly managed agency that offers earthquake insurance to home owners. It was established by the California legislature in order to make earthquake insurance more accessible to people and less of a burden on the insurance companies offering them. Here is a look at what type of coverage you can get in a CEA policy.
If you own a single-family home, the CEA policy offers coverage for structural damage. So this means that additional structures such as sheds or garages will not be covered. You have to pay a 15% deductible on structural damages. However, if you have a higher premium, you can lower your deductible to 10%. You will receive $5,000 towards repair or replacement cost on personal property that is damaged. If you wish to have higher personal property coverage, you can take on a higher premium. In a CEA policy, you get up to $100,000 in contents coverage. In the event you have to live elsewhere because your home is severely damaged, the CEA policy will pay up to $1,500, towards additional living expenses and you can increase this amount to about $15,000 by opting go for an additional premium.
If you own a condominium, your insurance policy coverage will change from the coverage offered with a single-family home, because of the common areas you share with other owners in the building. In the event of structural damage, you will receive compensation for $25,000 for damages to those areas that you own. If you have opted for loss-of-use coverage, you will receive additional living expense ranging from $1,500 to $15,000. The standard coverage you receive on personal contents is $5,000 however if you choose to you can increase this up to up to $100,000.
You can buy CEA insurance form insurance companies that participate in CEA. Such companies will carry out the whole process starting from receiving application, preparing invoices, handling claims, making payments and renewing policies.
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