As of July 1, 2012, the California Earthquake Authority (CEA) is offering its new Homeowners Choice product line. The new product will give residents greater control over their earthquake insurance premium and the ability to select (or decline) coverage of their personal property. For homeowners, the personal property coverage will be more accessible through a new deductible structure.
CEA’s new Homeowners Choice policy complements CEA’s standard homeowners policy, which bundles in a single policy coverage for the dwelling, personal property, and additional living expenses. By offering both policies, CEA can help homeowners choose and customize the right policy to meet their earthquake-insurance and household-budget needs.
California has 70 percent of America’s earthquake risk, yet most residents don’t buy earthquake insurance. Without earthquake insurance to help recover from catastrophic damage, residents may be responsible for all costs to repair or rebuild their homes and to replace their personal property, as well as to live and eat elsewhere while their homes are being repaired or rebuilt.
Government disaster-assistance programs, if available, adhere to strict eligibility criteria – and might not always be available. If disaster grants are available, and if residents qualify, they may not receive funds sufficient to repair or rebuild their homes and to replace their personal property. And if government loans are available, they may be limited, and residents must repay them.
Homeowners can contact their insurance agent or company for an accurate quote or use the CEA’s premium calculator to get an estimate.