Earthquake insurance in Los Angeles: renters and homeowners
Standard renters insurance generally excludes earthquake shaking damage. Separate coverage can help with belongings and extra living costs; homeowners also need to review coverage for the building.
Key takeaways
Renters need to consider their belongings and extra living costs, not insure a landlord's building.
A percentage deductible may be based on the coverage limit, not the amount of damage. Check each coverage separately.
Earthquake shaking, fire and flood are different coverage questions. Read the actual policy and confirm exclusions before buying.
Does renters insurance cover earthquakes in California?
Generally, no: a standard renters policy does not cover damage from earthquake shaking. A landlord's building policy is not a substitute for coverage of your belongings. Separate renters earthquake insurance can cover eligible personal-property losses, subject to its limits, deductible and exclusions.
Start with a room-by-room inventory of furniture, clothing, electronics and other belongings. Ask about special limits for fragile or valuable items instead of assuming every item is covered for its full replacement cost.
If you cannot stay in your apartment
Loss-of-use coverage, also called additional living expenses, can help with extra costs of living elsewhere after a covered earthquake. It is not an unlimited housing allowance: ask which events trigger payment, which extra expenses qualify, and how the dollar and time limits work.
CEA renters coverage can apply when earthquake damage makes the home unsafe to occupy, or when a civil authority prevents entry because of earthquake damage. CEA lists no deductible for this coverage. Do not assume a different insurer uses the same terms, or that your ordinary renters policy pays for displacement caused by an excluded earthquake.
Turn the deductible into a dollar amount
CEA's renters personal-property deductible is a percentage of the personal-property coverage limit. For example, a 10% deductible on a $25,000 limit is $2,500—not 10% of each damaged item's value. This is an illustration, not a quote or a promise about a claim payment; exclusions and special limits still apply.
Ask for a written example using the limit and deductible you are considering. Compare the cost you would retain after a loss with the premium, and check belongings and loss-of-use coverage separately. A higher deductible may reduce the premium but leaves more of an eligible property loss to you.
Homeowners and condo owners: check the building too
Homeowners should review dwelling coverage as well as belongings and living expenses. In California, a homeowners insurer must offer earthquake insurance every other year. The written offer states the limits, deductible and premium; the Department of Insurance says the acceptance period is 30 days from the mailing date.
Condo owners should compare their own policy with the association's policy. Ask about interior improvements, belongings, living expenses and loss-assessment coverage if the association charges owners for covered earthquake damage. Do not assume the association insures everything inside your unit.
What an earthquake policy does not automatically cover
An earthquake policy does not insure every loss that happens after a quake. California's Department of Insurance identifies important distinctions to discuss with your insurer:
- Fire: California homeowners and renters insurance must cover fire caused by or following an earthquake; this is different from shaking damage.
- Vehicles: review your auto policy separately rather than relying on a property earthquake policy.
- Flood or tsunami: these are not covered by an earthquake policy; ask about separate flood coverage.
- Land and outdoor property: land, pools, landscaping and separate structures may be excluded. Check the exact contract.
- Belongings: fragile items and certain valuables may have special limits or exclusions.
Questions to bring to an insurance conversation
Bring your current declarations page, property address and belongings inventory. CEA policies are purchased through a participating insurer that also writes your residential policy, not directly from CEA. Other earthquake insurers may offer different arrangements.
Ask your existing insurer or a licensed agent to confirm current options for your address. If you contact Cardona's, ask the office to confirm the carriers and earthquake products it can currently assist with. This guide does not establish availability, bind coverage or replace the policy terms.
- What are the limits, dollar deductibles and important exclusions for each coverage?
- What would qualify for temporary housing, and what receipts or other records would be needed?
- When would coverage begin, and are there any current restrictions on issuing a policy?
Common questions
Does renters insurance cover earthquake damage to my belongings?
Generally no. California's Department of Insurance says renters policies generally exclude earthquake damage, but renters can buy separate earthquake coverage for belongings and additional living expenses.
Will my landlord's earthquake policy replace my belongings?
Do not assume it will. A policy on the landlord's building is not coverage for your personal belongings. Ask about a renters earthquake policy and review its own limits, deductible and exclusions.
Does temporary housing have the same deductible as belongings?
Not necessarily. CEA renters loss-of-use coverage has no deductible, while its personal-property coverage has a percentage deductible. Other insurers can have different terms; confirm both coverages in the policy you are considering.
Does home insurance cover a fire that follows an earthquake?
Yes. California law requires homeowners and renters insurance to cover fire damage caused by or following an earthquake, even without a separate earthquake policy.
