Question 1

Is earthquake insurance worth it in California?

Accepted Answer

Only about 13% of California homeowners carry earthquake coverage. The ROI depends on your dwelling value, building type, deductible (often 10%–20%), and local seismic percentile. In high-percentile Bay Area and LA County markets, expected 30-year loss can exceed lifetime premium spend — but one event can still wipe out equity if you self-insure.

Question 2

What does CEA earthquake insurance typically cost?

Accepted Answer

CEA premiums vary widely by ZIP, soil type, and construction era. Wood-frame homes on firm soil may pay $800–$2,500/year on a $750,000 dwelling; soft-story or pre-1940 construction can run 2–3× higher. This calculator uses directional bands — not a CEA quote.

Question 3

Should I buy earthquake insurance or retrofit first?

Accepted Answer

Retrofitting (cripple-wall bracing, foundation bolting) can reduce premiums and loss severity. Many buyers retrofit within the first year of ownership when the deductible exposure ($75,000+ on a $750,000 home) exceeds the $5,000–$15,000 retrofit cost.

Earthquake Insurance ROI Calculator

Earthquake insurance ROI