Earthquake Insurance for San Diego Homeowners: What It Covers and How Deductibles Work
Standard homeowners insurance typically does not cover earthquake damage, so a home buyer in San Diego who wants that protection needs a separate earthquake policy. The California Earthquake Authority, or CEA, offers one through participating insurers, and its dwelling deductibles are set as a percentage of your coverage, from 5% to 25%.
The short answer
- Standard homeowners insurance typically does not cover earthquake damage, so you need a separate policy.
- CEA sells its policies through participating residential insurers.
- Dwelling deductibles are 5%, 10%, 15%, 20% or 25% of the dwelling limit.
- Loss of use coverage has no deductible, and every policy includes $10,000 for building code upgrades.
What the CEA offers
The CEA has offered residential earthquake insurance since 1996. It is a not-for-profit, and it sells its policies only through participating residential insurance companies, so you ask your regular agent whether your insurer participates. It covers homeowners, condo owners, mobilehome owners and renters. Homeowners can choose between two forms, Homeowners Choice and Standard Homeowners, and the sample policies are on the CEA's site.
What the policy can cover
| Coverage | What it does |
|---|---|
| Dwelling | Earthquake damage to the house and attached structures, such as a garage. |
| Personal property | Items inside the house, such as furniture, appliances and clothing. |
| Loss of use | Rent and added living costs if the home is unsafe to live in during repairs. No deductible. |
| Building code upgrade | Upgrades needed to pass inspections. Every policy includes $10,000, and higher limits are available. |
| Emergency repairs | Steps to prevent more damage, such as boarding windows. No deductible for the first $1,500. |
The CEA says exclusions and special limits apply, so read the policy form before you buy.
How the deductible works: a dollar example
The dwelling deductible is a percentage of your dwelling coverage limit, not of the damage. Here is a made-up example for a home with an $800,000 dwelling limit. This is for illustration only, and your insurer will set your real limit.
| Deductible | What you pay first |
|---|---|
| 5% | $40,000 |
| 10% | $80,000 |
| 15% | $120,000 |
| 20% | $160,000 |
| 25% | $200,000 |
A higher deductible usually lowers the premium, but it means you pay more out of pocket before the policy pays on the dwelling. The CEA says homes with a dwelling limit above $1,000,000, or older homes built before 1980 on raised or other foundations without a verified retrofit, are limited to 15%, 20% or 25%.
Retrofit discounts
The CEA offers premium discounts of up to 25% for properly retrofitted older homes. If you are buying a home built before 1980, ask in your inspection period whether a retrofit was done and whether there are records. That can affect both your deductible choices and your premium.
Should you buy it?
That is a personal decision about risk, cash and your lender's requirements. The CEA notes that California has many active faults, and that quakes such as Northridge in 1994 and Ridgecrest in 2019 happened on faults that were not previously known. A lender does not usually require earthquake coverage, but a buyer should know that a regular policy leaves it out. Plan for the cost with the rest of your budget, using my guide to how much income you need to buy in San Diego.
Insurance comes with other questions too. If your regular insurer is not renewing you, read my guide to nonrenewal.
What this guide cannot promise
I cannot give you a premium or tell you whether a particular insurer participates. Limits, deductibles and discounts can change. Ask a licensed agent for a written quote and read the policy form.
My advice for San Diego buyers
- Ask your insurance agent early whether your insurer sells CEA policies.
- Ask for quotes at more than one deductible level and compare the out-of-pocket amount.
- Find out whether an older home has a verified retrofit.
- Remember that loss of use has no deductible.
- Read the policy form for exclusions and special limits.
A note on advice
I am a REALTOR®, not an insurance agent, attorney or financial advisor, so this guide is general information. A licensed insurance agent or broker can tell you what coverage and prices apply to a specific home.
Call or text me at (619) 402-4614 or send me a message.
Call or text (619) 402-4614Contact Trevor LandressRelated guides
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- Homeowners Insurance Nonrenewal in California: What Happens If Your Insurer Drops You
- How Much Are Closing Costs When Buying a Home in San Diego?
- How Much Down Payment Do You Need to Buy a Home in San Diego?
Frequently asked questions
Does homeowners insurance cover earthquakes?
Standard homeowners insurance typically does not cover earthquake damage, so a separate earthquake policy is needed.
Where can I buy a CEA policy?
The CEA sells its policies only through participating residential insurance companies, so ask your agent whether your insurer participates.
What are the CEA deductible options?
Dwelling deductibles are 5%, 10%, 15%, 20% or 25%. Homes with a dwelling limit over $1,000,000 and some pre-1980 homes without a verified retrofit are limited to 15%, 20% or 25%.
Is there a deductible on loss of use?
No. The CEA says its loss of use coverage never has a deductible.
Can a retrofit lower my premium?
The CEA offers premium discounts of up to 25% for properly retrofitted older homes.
About the author
Trevor Landress is a San Diego REALTOR® with Coldwell Banker West (DRE# 02126901). He was born and raised in San Diego and has been licensed since 2021.
Trevor helps homeowners sell, guides first-time buyers through the home buying process and assists investors with their next acquisition. His work includes negotiating offers, analyzing market trends, building pricing strategies and running marketing campaigns for his listings.
He serves clients across San Diego County, from coastal communities like La Jolla, Del Mar and Carlsbad to neighborhoods inland.
Trevor is part of the Campbell Group, a three-generation real estate team, and he and the Campbell Group consistently rank as a top producing team at Coldwell Banker West each month. He writes these guides to help San Diego buyers and sellers navigate an ever-changing market. To talk through your plans, call or text (619) 402-4614 or contact Trevor Landress.
How I help San Diego home buyers
I help buyers sort out their budget, understand their loan options with a lender, search for homes, write and negotiate offers, keep track of inspection and contingency deadlines and stay organized through closing.
How I help San Diego home sellers
I help sellers price their home, prepare it for the market, market it to buyers, review and negotiate offers and manage the steps from an accepted offer to closing.
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