Following the devastating financial losses experienced in the Northridge quake, most insurers refused to write new California homeowners business in order to avoid increasing their quake exposure. The CEA is a privately funded, publicly managed consortium of insurance companies. Additional funds are available from reinsurers, investors, loans, and assessments on insurers and policyholders following a large quake. They have approximately 900,000 policyholders. While pricing is competitive, the basic CEA policy form contains significant restrictions and many exclusions.
Coverage applies primarily to the dwelling itself.
Damage to detached buildings, fences or walls, patios, decks, swimming pools, irrigation systems, and decorative or artistic features including fountains and aquariums is not covered. The standard deductible is 15 percent of the policy limit. There are other options. You should also investigate the cost and scope of coverage available directly from your present homeowners insurer. Inquire about the cost of lowering the deductible and increasing the limit of contents and extra living expense coverage with CEA, if you choose to insure with them.