Nadler Insurance

Earthquake Insurance

Bay Area earthquakes are a when, not an if. Your homeowners policy doesn't cover earthquake damage — make sure your home is protected when it counts.

What Earthquake Insurance Covers

Dwelling Coverage

Pays to repair or rebuild your home if it's damaged by an earthquake. Covers the structure, foundation, and attached features like built-in appliances.

Personal Property

Covers your belongings — furniture, electronics, clothing — damaged by earthquake. Subject to a separate deductible from your dwelling coverage.

Loss of Use

Pays for temporary living expenses if your home is uninhabitable after a quake. Covers hotel, meals, and other additional costs.

Additional Living Expenses

Coverage for the extra costs of living away from home while earthquake damage is repaired — above what you'd normally spend.

The Bay Area Earthquake Reality

The San Francisco Bay Area sits on top of several major fault lines, including the San Andreas and Hayward faults. Seismologists estimate there's a 72% chance of a magnitude 6.7 or greater earthquake in the Bay Area by 2043.

  • Only ~10% of California homeowners have earthquake insurance — leaving most homes unprotected.
  • Federal disaster loans aren't free money — you'll have to pay them back, often with interest.
  • FEMA grants are limited — typically capped at around $35,000, far less than major repair costs.

CEA vs. Private Earthquake Insurance

CEA (California Earthquake Authority)

  • • Widely available to California homeowners
  • • Backed by $20+ billion in claims-paying capacity
  • • Deductibles typically 5-25% of dwelling coverage
  • • Standardized policy options
  • • Available through most home insurance carriers

Private Earthquake Insurance

  • • May offer lower deductibles (some as low as 2.5%)
  • • Broader coverage options available
  • • May cover items CEA excludes
  • • Underwriting varies — not all homes qualify
  • • Pricing and terms differ by carrier

Frequently Asked Questions

Why isn't earthquake covered by my homeowners insurance?
Earthquakes are excluded from standard homeowners policies because the risk is so concentrated in certain areas (like California) and the potential losses are so large. A separate earthquake policy is required.
What is the CEA?
The California Earthquake Authority (CEA) is a publicly managed, privately funded organization that provides earthquake insurance to California homeowners. It's available through participating insurance companies and offers standardized policies with various coverage options.
Should I get CEA or private earthquake insurance?
It depends. CEA policies are widely available and backed by a large reserve, but have higher deductibles (typically 5-25% of dwelling coverage). Private carriers may offer lower deductibles and broader coverage but can be more selective about which homes they insure. We'll help you compare options.
Why are earthquake insurance deductibles so high?
Earthquake deductibles are typically 10-20% of your dwelling coverage — so on a $500,000 home, you might pay $50,000-$100,000 out of pocket. High deductibles keep premiums affordable for catastrophic coverage. Some private carriers offer lower deductibles at higher premiums.
Does earthquake insurance cover land and foundation damage?
Most earthquake policies cover foundation damage but not land damage (like settling, sinkholes, or landslides caused by earthquakes). Check your policy details — coverage varies between CEA and private options.
Growing Up Covered

Free Guides & Checklists

Practical resources to help you understand your coverage.

Earthquake Insurance in California: What It Costs, How It Works, and How to Decide

A candid, education-first guide to earthquake insurance in California covering the history of the CEA, how the 15% deductible actually works in practice, the premium-to-deductible math most people don't think through, retrofit options, and a framework for making the intentional decision that's right for your household.

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Ready to protect your home from earthquakes?

We'll compare CEA and private options to find the right coverage for your home and budget.

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