What is the California Earthquake Authority?
The California Earthquake Authority is a publicly managed, privately funded, not-for-profit organization that provides residential earthquake insurance and encourages Californians to reduce their risk of earthquake damage and loss.
When did CEA earthquake insurance start in California?
After the 6.7 magnitude 1994 Northridge earthquake—which damaged or destroyed thousands of homes—CEA was created by the California Legislature in 1996 to offer earthquake insurance coverage in California. Our affordable and flexible policies—based on the best available science—have expanded over two decades.
What percentage of California homeowners have earthquake insurance?
The CEA controls 67% of the California market for residential earthquake insurance, with non-CEA insurers accounting for the remaining 33%. Overall, just 14% of residential home insurance policyholders had earthquake coverage in 2019, with homeowners and condo owners around 16%, renters at 14% and mobile home owners at 20%.
Does CEA earthquake insurance cover fire damage?
While CEA earthquake insurance covers a number of scenarios, it ordinarily doesn’t cover: Fire damage. A homeowners policy will cover fire damage, even if it’s caused by an earthquake. Damage to land, such as sinkholes.
Is the California Earthquake Authority publicly funded?
CEA is a not-for-profit, privately funded, publicly managed organization that provides residential earthquake insurance and encourages Californians to reduce their risk of earthquake loss. CEA only offers residential insurance.
How does California Earthquake Authority work?
How Does the California Earthquake Authority Work? The CEA fills an insurance void in California. State law mandates that homeowners insurance companies must offer earthquake coverage to residential customers.
Who provides earthquake insurance in California?
The California Earthquake Authority (CEA)The California Earthquake Authority (CEA) provides most earthquake insurance in California. CEA offers earthquake policies, for homeowners, mobilehome owners, condo unit owners and renters. You cannot buy earthquake insurance directly from CEA you buy it directly from insurance companies that are members of CEA.
Does the government pay for earthquake damage?
Without earthquake insurance coverage in California, you will be responsible for 100 percent of the cost to repair your home, and replace your belongings after a damaging earthquake strikes. Given the potential cost to repair shake damage, the cost of a CEA policy may be an easy expense to justify.
Who funds the California Earthquake Authority?
Backed by the expertise of 25 participating insurance companies and more than $19 billion in claim-paying capacity, CEA is earthquake strong and earthquake ready.
How is CEA funded?
CEA is a privately financed entity and receives no funding from the State of California budget. California's budget concerns have no impact on CEA's ability to pay its policyholders' claims. By law, the State of California is not responsible for CEA's liabilities, and CEA does not pay any state liabilities.
Why do insurance companies not offer earthquake insurance?
In the United States, insurance companies stop selling coverage for a few weeks after a sizeable earthquake has occurred. This is because damaging aftershocks can occur after the initial quake, and rarely, it may be foreshock. Although aftershocks are smaller in magnitude, they deviate from the original epicenter.
Is earthquake insurance mandatory in California?
A. Though California has nearly 16,000 known earthquake faults, you are not required by state law to carry earthquake insurance. Your basic homeowners and renters insurance policies do not cover earthquake damage.
Is earthquake insurance tax deductible?
Yes. Earthquake insurance is a deductible expense for your rental property.
Does the government help after an earthquake?
The federal government provides short-term and long-term help for victims of natural disasters like wildfires, earthquakes, severe storms. Federal disaster relief agencies like FEMA provide food, shelter, water, money, and healthcare for those affected by a natural disaster.
Does FEMA pay for earthquake damage?
Traditional earthquake insurance covers damage caused by an earthquake by insuring “pure loss.” That means they will assess the value of the items lost and reimburse you for that specific amount – this amount will be different for different people.
What does FEMA pay after earthquake?
Typically, it covers repairs to your home and other structures, replacement of personal belongings, and payment for additional living expenses if you can't live in your home. It won't cover flood damage, even if the flood is the result of the earthquake.
Is California Earthquake Authority (CEA) a state agency?
No. CEA is a public instrumentality of the state. An instrumentality is an organization created by state law and operated for public purposes. CEA...
Is California Earthquake Authority (CEA) financially sound?
Yes. CEA has an A- (Excellent) rating from A.M. Best Co., the world's leading rating agency of insurance companies.
Why choose CEA earthquake insurance?
The not-for-profit CEA is one of the world’s largest providers of residential earthquake insurance. Our rates are based on science, not profit, ena...
Where can I buy a CEA earthquake insurance policy?
You can buy a CEA earthquake insurance policy through one of our participating residential insurance companies. CEA does not offer stand-alone poli...
What happens if you don't have earthquake insurance in California?
Without earthquake insurance coverage in California, you will be responsible for 100 percent of the cost to repair your home, and replace your belongings after a damaging earthquake strikes. Given the potential cost to repair shake damage, the cost of a CEA policy may be an easy expense to justify.
What is CEA insurance?
With more than 1 million policyholders, CEA is one of the world's largest providers of residential earthquake insurance. Since 1996, CEA has been encouraging California homeowners, mobilehome owners, condo-unit owners and renters to reduce their risk of earthquake damage and loss through education, mitigation and insurance.
How to be earthquake ready?
There are easy steps you can take now to be earthquake ready: Create an earthquake safety plan for you and loved ones, including pets. Identify safe places in each room of your home. Know your risk for earthquakes in your area and what to do to stay safe. Make or purchase earthquake safety kits.
What happens if you have an earthquake on your roof?
Earthquakes can cause extensive damage to the foundation, siding and roof of homes. Older homes built before 1980 on a raised foundation are especially vulnerable if they are not retrofitted. Without residential earthquake insurance you will be responsible for all repair and/or rebuilding costs.
What does earthquake insurance cover?
Residential earthquake insurance typically pays for damaged walls, foundations, and ceilings. Options can also cover household items that are destroyed or need repair due to an earthquake, such as electronics and appliances.
How much chance of earthquakes in California?
According to a Uniform California Earthquake Rupture Forecast study, there is more than a 99% chance of one or more magnitude 6.7 or greater earthquakes striking California. Ask yourself: after a major earthquake, could you: Afford to repair or replace your home without insurance;
What is earthquake safety?
Earthquake safety involves being prepared and knowing what to do. Practicing earthquake safety at home and creating a disaster safety kit before the next earthquake is crucial to your family’s safety. Learn About Personal Preparedness. About California Earthquake Authority.
How is CEA financed?
CEA is financed solely through insurer contributions, policyholder premiums, and its own investment returns. Learn more about CEA’s creation after the Northridge earthquake . Q.
What is CEA insurance?
Since 1996, CEA has been making earthquake insurance as affordable as possible for all California residents, while helping reduce their risk of earthquake loss wherever they live. Learn more about how we were created.
How to contact CEA?
For answers to questions regarding employment at CEA, please contact: CEA's Human Resources: (916) 661-6300 or [email protected]. CalHR, State of California HR website.
Is CEA a profit?
The not-for-profit CEA is one of the world’s largest providers of residential earthquake insurance. Our rates are based on science, not profit, enabling us to use the best science available to determine competitive earthquake insurance rates.
History of the CEA
The California Earthquake Authority is a nonprofit agency that was created to respond to the unique severity of the earthquake threats in the state. After the Northridge earthquake, private insurance providers essentially stopped writing new homeowners’ insurance policies.
How it Helps Homeowners
The CEA was created to ensure the market availability of earthquake insurance policies. Today, the agency offers earthquake insurance for most residential dwellings, including mobile homes and manufactured homes.
How to Get CEA Coverage
After the Ridgecrest earthquake in 2019, misinformation began to circulate about earthquake insurance. State insurance commissioner Ricardo Lara issued a statement, saying: “We have received reports that some insurers and agents are telling consumers there is a moratorium [on new policies], when in fact you can buy earthquake insurance today.
What was the purpose of CEA?
CEA was established to address a serious financial crisis. In 1994, the 6.7-magnitude Northridge earthquake hit Southern California’s San Fernando Valley, causing an estimated $26.4 billion in insured losses (as measured in 2018 dollars). It ranks as the costliest quake in U.S. history.
Does CEA sell earthquake insurance?
One of the biggest misunderstandings about CEA revolves around what it does. It’s not an insurance company. As such, the CEA itself does not sell earthqua ke policies or provide customer service for these policies. All insurance applications, billing questions and claim inquiries must be directed to the appropriate insurer that’s participating in the CEA program.