The Limited Earthquake Coverage Offered by the California Earthquake Authority Earthquake insurance rates have doubled since the California Earthquake Authority was established. But consumers haven't received better coverage in exchange. In fact, they're receiving far less. And the coverage has large gaps in it.
Every policy covers only the house itself.
The policies do not cover detached garages or other structures, pools, patios, landscaping, walkways, or fences. Homeowners will pick up the tab if CEA becomes insolvent. If that were to happen, earthquake victims could receive pro-rated claim payments, perhaps as low as a dime for each dollar of covered damage. Since the policy doesn't cover the pool or garage, the homeowner would pay for these losses himself. All Rights Reserved.