The FAIR Plan provides earthquake coverage through the California Earthquake Authority (CEA), on a separate policy written in conjunction with the FAIR Plan fire policy. The FAIR Plan is one of 17 participating member companies of the CEA.
The CEA offers three types of policies: Homeowners (BEQ-3B); Renters (BEQ-4B); and Common Interest Development (BEQ-6B). Coverage for Mobile Homes is written under the Homeowners policy.
Please visit www.earthquakeauthority.com for more detailed information about the CEA. This CEA link also provides a rate calculator to determine an approximate rate for both basic and/or supplemental coverages.
A stand-alone earthquake policy cannot be obtained. Coverage cannot be provided unless a FAIR Plan policy is in effect. CEA earthquake coverage is an optional coverage that can be requested by the applicant/insured at any time during the policy period.
Earthquake coverage is available only for individually owned residential properties (main structure only), and tenant's or condominium unit owner's personal property.
If the FAIR Plan policy is cancelled or non-renewed, the CEA policy will also be cancelled or non-renewed on the same date as the FAIR Plan policy.
The basic policy features are as follows:
• The earthquake deductible is 15 per cent.
• Coverage is for the main dwelling only. No coverage is available for other structures such as unattached garages, swimming pools, fences and walls, satellite dishes, statues, etc.
• Dwelling Coverage amount must be the same amount stated on the companion fire policy.
• The basic policy limit for Contents/Personal Property is $5,000.
• The basic policy limit for Loss of Use, or Fair Rental Value is $1,500.
• Losses for both structure and contents are settled on a replacement cost basis, with some restrictions.
• Loss Assessment coverage is available for condominium owners at increments of $25,000, $50,000, or $75,000, depending on the value of the condominium.
Damage to the structure must exceed the CEA policy deductible before any monies will be paid for structure or contents damage. Please read the policy carefully, or consult the CEA website ( for further clarification.
IMPORTANT NOTE: Loss settlements are solely dependent on monies collected and available from the CEA at the time of loss.
How to Obtain Coverage
A CEA application is needed to obtain either the basic or supplemental earthquake coverage. Photocopies of this application are acceptable; however, an original signature of the applicant is required. The CEA application can be downloaded from our website under the Forms For Download link. Your broker can assist in completing this application.
Supplemental Options For California Earthquake Authority (CEA) Coverage
The CEA also offers an optional 10 percent deductible for dwelling policies only, in addition to several coverage options for personal property and loss of use. The 10 percent deductible is not available for Condominiums or Renters Policies.
In addition to the basic policy limits and the deductibles, the following options are available for all CEA policies for an additional premium:
• Supplemental Contents/Personal Property Coverage in amounts of: $25,000; $50,000; $75,000; and $100,000.
• Supplemental Loss of Use Coverage in amounts of $10,000; $15,000; or $25,000.
An additional limit of $10,000 for Building Code Upgrade Coverage is available for Dwelling Policies, effectively doubling the limit to $20,000.
Policyholders can select one or more of these coverages in any amount or Combination offered (refer to the Supplemental coverage section of the CEA application).
Send all CEA-related correspondence and payments to:
California Earthquake Authority
P. O. Box 76922
Los Angeles , CA 90076-0922
CALIFORNIA EARTHQUAKE AUTHORITY (CEA) COVERAGES