In other words, unlike the CEA policy, the policyholder does not have to satisfy the deductible against the dwelling before making claims against the other insured coverages. The Pacific Select earthquake insurance policy is not available to all homeowners in all areas. Dwellings on slopes greater than 26 degrees are not eligible. Dwellings built prior to 1955 must be seismically retrofitted and documentation is required. Condominium buildings built prior to 1960 are ineligible.
Dwellings built on stilts, pilings or poles are ineligible.
However, homeowners who are eligible can benefit from the extensive coverage this policy provides at an affordable price. As homeowners become more aware of the limitations of the CEA policy and the relative high cost of the supplemental coverage, more will shop around for better coverage at a better price. Those who are well informed will choose the most cost-effective alternative. Where homeowners are eligible for better policies at lower costs, the CEA will not be the earthquake insurance policy of choice. This turns the usual concept of insurance on its head.