Earthquake insurance through California Earthquake Authority

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PostPosted: Thu Apr 25, 2013 10:05 am   Post subject: Earthquake insurance through California Earthquake Authority  

I'm a resident of Sacramento. I've heard somewhere that I can avail an earthquake insurance from the California Earthquake Authority (CEA) through participating insurance companies. Isn't that weird? I mean how can that be? How can a government entity sell insurance privately?

Any response would be appreciated..

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PostPosted: Fri Apr 26, 2013 6:30 am   Post subject:   

The California Earthquake Authority (CEA) is a state-sponsored public-private partnership that offers earthquake insurance to homeowners, renters and condo owners of CA.

As of now, there are 20 insurance companies that participate in this joint program.

What CEA says in their About page:

The California Earthquake Authority is a publicly managed, largely privately funded organization that provides catastrophic residential earthquake insurance and encourages Californians to reduce their risk of earthquake loss.

Visit their website to know more:


Owning a home is a keystone of wealth - both financial affluence and emotional security. ~ Suze Orman
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PostPosted: Wed Jun 19, 2013 3:38 pm   Post subject:   

One of the things to remember on CEA policies is that the policy has to be written through the same company that writes your regular home owners policy. You can not have a CEA policy without having a homeowners policy.

As to how the government sell insurance privately is like this. The policies are sold and maintained through insurance carriers like Farmers or State Farm and underwritten by the state. When a claim happens the writing company (i.e. Farmers) will handle the claim and settle the claim under the CEA policy and then is reimbursed by the state for those covered damages plus a fee for handling.

If you know CA like I do, you do not want them to be handling any of this on their own.

Hope this helps

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