Earthquake Insurance for California Homes

The 1994 Northridge earthquake shows how big that separate risk can be. That magnitude 6.7 quake caused more than $20 billion in residential damage, about half of it insured, according to the California Earthquake Authority. Insurers had badly underestimated the cost, and by 1995 companies holding nearly 95 percent of the state's residential market had restricted or stopped selling homeowners policies.

The Legislature responded in 1996 by creating the CEA, a not-for-profit, publicly managed and privately funded entity that now provides most of California's residential earthquake coverage. You can't buy from the CEA directly. Its policies are sold through participating home insurers.

Here in the Santa Clarita Valley, the Northridge quake brought down part of the Highway 14 and I-5 interchange at the Newhall Pass and damaged homes and businesses across the valley. For a family that owns a house here, the real question is how much of a repair bill like that you could carry without help.

We don't start from the idea that one is better. We can help you compare a CEA policy with private options for the same house and explain where deductibles, contents limits and living-expense limits differ. Which options are open to you depends on who insures your home and on the property itself, so we'll tell you upfront what we can quote.

One detail that surprises people: the CEA lists the California FAIR Plan among its participating insurers, so having a FAIR Plan dwelling policy doesn't rule out CEA earthquake coverage. Our California FAIR Plan guide explains how that policy works.

• The goal is a livable home. As the CDI puts it, earthquake insurance for homeowners is meant to help put a roof back over your head. It won't replace everything you lost.
• Building code upgrades: $10,000 is included with every CEA homeowners policy, and you can buy a higher limit. Older homes often need code work after major damage.
• Emergency repairs: there's no deductible on the first $1,500, which helps pay for boarding up and keeping water out right after a quake.
• Loss of use: the CEA says this part never has a deductible, which matters if you have to move out while the house is repaired.

Condo owners and renters can buy CEA coverage too. A condo policy can cover the inside of your unit, your belongings, living costs and loss assessment, and a renters policy covers belongings and temporary housing. See condo insurance and renters insurance in California for how earthquake fits with each.

Here's the math on a house insured for $600,000. A 15% deductible means the first $90,000 of covered damage to the house is yours, and the policy pays the rest up to the limit. At 10%, your share would be $60,000. Cracked drywall and broken dishes may never reach a deductible that size; the policy is built for serious structural damage.

• Homes insured for more than $1,000,000 can't choose the 5% or 10% options.
• Wood-frame homes built before 1980 that aren't on a slab foundation and have no verified retrofit start at 15%.
• Homeowners Choice policies let personal property carry its own deductible, which the CEA waives if damage to the house already exceeds the dwelling deductible.

• Could you rebuild without it? Add up repairs, temporary housing, and the mortgage and property tax bills that keep coming due.
• Would federal aid cover it? The CDI says the main federal help after a disaster is a low-interest loan you must qualify for and repay. FEMA grants for repairs and rent are only for people who don't qualify for those loans.
• Is your house higher risk? The CDI flags older homes, brick or masonry homes and homes with more than one story. Wood-frame houses on raised foundations built before 1980 are the ones Brace + Bolt grants target.

Our page on Santa Clarita home insurance covers the other local risks, including wildfire, and the Santa Clarita area page explains how we work with neighbors from Newhall to Castaic.

• It isn't automatic. An inspection professional, such as a contractor or structural engineer, completes the CEA's Dwelling Retrofit Verification form, and it goes to your insurer.
• The water heater counts. It has to be secured to the building frame.
• Slab homes are already priced lower. Their rate reflects the lower risk, so they don't get this discount.

Earthquake Brace + Bolt (opens in a new tab), run by the California Residential Mitigation Program, offers grants of up to $3,000 toward a code-compliant retrofit of a wood-framed, pre-1980 house on a raised foundation. Income-eligible households can receive up to $7,000 more. Santa Clarita ZIP codes 91321, 91350, 91351, 91354, 91355, 91381, 91384, 91387 and 91390 were all on the 2025 eligibility list. Registration opens for a limited time each year, so check the current list and dates before you hire a contractor.

Earthquake coverage sits on top of a solid home policy, so start with homeowners insurance in California if you're shopping the house too. Households with cars can roll everything into one review on our home and auto bundle page. Weekdays from 9 to 4, Dolores or Brian usually returns calls within the hour.