Rates and Premiums
CEA is focused on offering customers the best rates
California Earthquake Authority (CEA) has reduced statewide-average rates for homeowners earthquake insurance by nearly 55% since we opened our doors in 1996, making earthquake insurance more affordable than ever!
CEA rates are based on science, not profit. We use the best available science to determine competitive earthquake insurance rates.
We are not-for-profit, publicly managed, and privately funded. Our Governing Board of elected state officials ensures our rates are as low as possible while remaining financially sound.
Do you already have a policy with a start date in 2015? Learn more about your policy.
Commonly asked questions about our rates and premiums
- Q: How much does a CEA policy cost?
A: The minimum annual premium for CEA standard
Homeowners Choice policies is $100. Different rating factors determine your premium, such as:
- Earthquake risk where you live.
- Insured value of your home.
- Your home's construction type, age, foundation type, and number of stories.
- The policy coverages, limits and deductibles you choose.
- Q: Do you offer any policy premium discounts?
A: Yes, CEA policyholders whose houses have been retrofitted to help reduce earthquake damage can receive up to a 20 percent policy premium discount if their house meets the following requirements:
- The house was built before 1979;
- The house is of wood-frame construction;
- The house is built on a raised foundation. If your house has a post-and-pier foundation, the retrofit must comply with state building codes;
- The house's wood frame is secured to the concrete foundation;
- The house's water heater is secured to the house's wood frame; and
- If the house has cripple walls, they must be braced with plywood or its equivalent, in accordance with California Building Code standards. (Cripple walls are walls under the main floor that are less than full-story height--not all houses have them.)
The California Residential Mitigation Program's (CRMP) Earthquake Brace + Bolt Program also offers up to $3,000 in financial incentives to help qualified homeowners complete this type of retrofitting. (CRMP grants are not included in, or a benefit of, CEA earthquake insurance.)
- Q: Will CEA be able to pay all of its claims if there is an earthquake?
A: CEA has a claim-paying capacity of more than $13 billion. Also:
Read your CEA policy carefully
We encourage you to read your entire CEA policy to understand what is covered and what is not. Exclusions and special limits apply. Your homeowners insurance agent can answer any questions.
All details, limits, and conditions of CEA coverages are found in CEA insurance policies. Refer to a Sample Policy, below, for current CEA policy language.