Earthquake insurance covers damage caused by ground shaking, ground rupture, and related earth movement. It is excluded from every standard homeowners policy and must be purchased separately, either through a standalone earthquake policy, an endorsement on an HO-3, or through a state program like the California Earthquake Authority (CEA).
Percentage deductibles — the real cost of a quake claim
| Coverage A | 10% Deductible | 15% Deductible | 20% Deductible | 25% Deductible |
|---|---|---|---|---|
| $300,000 | $30,000 | $45,000 | $60,000 | $75,000 |
| $500,000 | $50,000 | $75,000 | $100,000 | $125,000 |
| $750,000 | $75,000 | $112,500 | $150,000 | $187,500 |
| $1,000,000 | $100,000 | $150,000 | $200,000 | $250,000 |
On CEA policies the dwelling and contents deductibles are separate — you can hit deductible on one and still collect on the other.
Construction type drives premium
| Construction | Relative Risk | Premium Impact |
|---|---|---|
| Wood-frame, post-1980, bolted | Lower | Base rate |
| Wood-frame, pre-1980, cripple wall | High | +30–60% (retrofit available) |
| Unreinforced masonry (URM) | Very high | Often uninsurable |
| Soft-story (parking under living) | High | Surcharge or decline |
| Slab on grade, single story | Lower | Discount |
| Hillside / on poles | High | Surcharge |
Retrofit credits (CEA Brace + Bolt program example)
| Retrofit | Typical Cost | Premium Discount |
|---|---|---|
| Foundation bolting | $3,000 – $7,000 | Up to 25% |
| Cripple wall bracing | +$2,000 – $5,000 | Stacks with bolting |
| Water heater strapping | $25 – $150 DIY | Required, not discounted |
| Automatic gas shutoff valve | $300 – $700 | Small discount; large risk reduction |
Agents can quote CEA, private carriers like Palomar or GeoVera, and DIC (Difference in Conditions) policies side-by-side so the deductible/limit/retrofit math is clear before binding.