California Department of Insurance

What this document is

California Department of Insurance - Earthquake Insurance (revised April 25, 2024) is a reference published by California Department of Insurance (www.insurance.ca.gov). It is one of the California documents that insurance license exam questions are written from, including california property & casualty, california personal lines, california claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• California Department of Insurance, Earthquake Insurance, Frequent Questions

  “If you have homeowners insurance in California, your company must offer to sell you earthquake insurance. It must offer this every other year. The offer must be in writing. It must tell you the amounts it covers (the limits), the deductible, and the premium.”

• California Department of Insurance, Earthquake Insurance, Homeowners Insurance Covers Fire Damage

  “California law says that both homeowners and renters insurance must cover fire damage that is caused by or follows an earthquake. This means that the fire damage is covered, whether or not you have earthquake insurance.”

• California Department of Insurance, Earthquake Insurance, The California Earthquake Authority (CEA)

  “You must have a residential property insurance policy in place in order to get a CEA earthquake policy. You must purchase your CEA policy from the same insurance company that you have your residential policy with”

• California Department of Insurance, Earthquake Insurance, Basic Earthquake Insurance, Part 3)

  “It can cover temporary rental of a home, apartment, or hotel room; restaurant meals; a temporary telephone line; moving and storage; furniture rental; and laundry. It is bound to a reasonable time needed to repair the home, or for you to move to another permanent home. The limit range from $1,500...”

• California Department of Insurance, Earthquake Insurance, What Earthquake Insurance Does Not Cover (Flood)

  “Earthquake insurance does not cover water damage from outside your home, such as sewer or drain back-up, flood, or tsunami. For example, if you live near a lake that floods your home after an earthquake, earthquake insurance will not pay to repair the damage. A flood insurance policy will cover you.”

• California Department of Insurance, Earthquake Insurance, Homeowners Choice Policies

  “Even though you can select separate deductibles for dwelling and personal property, the Homeowners Choice policy will not apply both deductibles for the same earthquake claim. This means that CEA waives the personal property deductible if covered damage to your house exceeds the dwelling deductible.”

• California Department of Insurance, Earthquake Insurance, How to File a Claim for Earthquake Damage

  “You can report claims by telephone. Your insurance company must open a claim when it gets your report of a claim. If your insurance company refuses to open a claim, call the California Department of Insurance immediately.”

• California Department of Insurance, Earthquake Insurance, Should I Buy Earthquake Insurance? Do not wait until after the earthquake

  “Waiting until after an earthquake to buy insurance is not a good idea. It doesn't protect you from the damage you have already had. Also, after an earthquake, insurance companies often do not sell earthquake coverage for a certain period. And when they start to sell it again, the premiums may be higher.”

• California Department of Insurance, Earthquake Insurance, Should I Buy Earthquake Insurance? Won't the government help me after a big earthquake?

  “Maybe. The main form of federal disaster relief is the low-interest loan. You must show that you can repay the loan. Grants from the Federal Emergency Management Agency (FEMA) for emergency home repairs and temporary rent assistance are only for those who do not qualify for loans.”

• California Department of Insurance, Earthquake Insurance, Before You Buy Earthquake Insurance, Does earthquake insurance cover all damage from earthquakes?

  “No. There are limits on what earthquake insurance pays. The purpose of earthquake insurance is to help put a roof back over your head. It does not replace everything you lost.”

• California Department of Insurance, Earthquake Insurance, Does my homeowners or renters insurance cover any earthquake damage?

  “In general, your homeowners or renters insurance does not protect your house from the damage an earthquake causes, even if the damage is indirect. The main exception is fire.”

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Questions about this source

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