California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 7.7 - California Earthquake Authority › Section 2697.6 - Earthquake Policies, Coverage Types and Limits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The Authority must offer, in accordance
				with the provisions of Division 2, Part 1, Chapter 8.5, of the Insurance Code,
				a basic residential earthquake insurance policy to any owner of a qualifying
				residential property, as long as the qualifying residential property meets the
				eligibility standards of the Authority and the owner has first secured a
				residential property insurance policy from a participating insurer.
(b) The Authority must renew any basic
				residential earthquake insurance policy it has written, provided that the
				Authority receives payment of the applicable renewal premium on or before the
				expiration date stated in the policy. The Authority must nonrenew, rescind, or
				cancel a policy on any otherwise qualified residential property whenever the
				property is no longer covered by an underlying residential property insurance
				policy issued by a participating insurer.
(c) No policy issued by the Authority will
				provide coverage in the event there is no underlying residential property
				insurance policy issued by a Participating Insurer at the time of loss. In that
				case, any unearned premium shall be returned to the policyholder on a pro rata
				basis.
(d) The types of policies,
				base-limits policy coverage limits, and base-limits policy deductibles of
				Authority policies shall be as follows:
1.
				Dwelling policy:
Coverage A (Dwelling)
Limit of
						  insurance equal to the stated Coverage A limit (however the limit on liability
						  for the structure may be denominated in the residential property insurance
						  policy, without adjustment of the stated dollar amount for inflation or similar
						  modification) of underlying residential property insurance policy; maximum
						  deductible 15% of Coverage A limit
Coverage B
Limited coverage, included
						  in Coverage A limit and subject to Coverage A deductible
Coverage C (Personal
						  Property/Contents)
No less than $5,000 limit of insurance; no payment
						  unless structural loss meets Coverage A deductible
Coverage D (Loss of Use)
No less than
						  $1,500 limit of insurance; no deductible
Limited Building Code Upgrade
No less
						  than $10,000 limit of insurance, subject to Coverage A deductible
2.
				Individual condominium or cooperative unit policy:
Coverage A (Real Property)
No less
						  than $25,000 limited of insurance; maximum deductible 15% of Coverage A limit;
						  plus no less than $10,000 Limited Building Code Upgrade coverage as additional
						  insurance, subject to Coverage A deductible
Coverage C (Personal
						  Property/Contents)
No less than $5,000 limit of insurance; maximum
						  deductible 15% of Coverage C limit
Coverage D (Loss of Use)
No less than
						  $1,500 limit of coverage; no deductible
Coverage E (Loss Assessment)
For
						  condominium units valued at $135,000 or more, no less than $50,000 limit of
						  coverage; for condominium units valued at less than $135,000, no less than
						  $25,000 limit of coverage; maximum deductible 15% of Coverage E limit
3.
				Renter's policy:
Coverage C (Personal Property)
No less
						  than $5,000 limit of insurance; maximum deductible 15% of Coverage C limit
Coverage D (Loss of Use)
No less than
						  $1,500 limit of insurance; no deductible