Martin Kappeyne asked 2 weeks ago My house was totally destroyed in the Palisades Fire. I have USAA as my insurance company.
1) Do insurance companies offering home owners insurance in California have to offer earthquake insurance through the CEA?
2) Can I have my insurance company remove my CEA coverage during the time that I do not have a structure to ensure without cancelling my policy?
Hi Martin,
We are sorry to hear about your house being destroyed in the Palisades Fire. That’s devastating, and we can understand why you’re looking into your insurance options during this difficult time.
Regarding your questions:
Yes, insurance companies that offer residential property insurance in California (including homeowners insurance) are required by law to offer earthquake insurance to their policyholders. The California Earthquake Authority (CEA) is a publicly managed, privately funded entity that provides most residential earthquake insurance in California. Companies like USAA that write residential property insurance in California must offer earthquake insurance either through the CEA or through their own earthquake insurance product.
Yes, you should be able to remove your CEA coverage during the period when you don’t have a structure to insure without canceling your entire homeowners policy. Since earthquake insurance specifically covers structural damage and there’s currently no structure to insure, you have a legitimate reason to temporarily suspend this coverage.
We would recommend:
-Contact your USAA representative directly to discuss removing the CEA portion of your coverage while maintaining your overall policy;
-Ask about how this might affect your policy when you rebuild;
-Confirm there won’t be any penalties or complications when you want to reinstate earthquake coverage.
USAA has experience working with policyholders in disaster situations, so they should be able to provide guidance specific to your circumstances.