Every standard homeowners policy in California excludes earthquake damage. With the Hayward, Calaveras and San Andreas faults all within reach of San Jose, a separate earthquake policy is the only thing standing between a major quake and a rebuild you fund yourself.
A policy pays to repair or rebuild the dwelling, replace personal property shaken off walls and shelves, and cover additional living expenses while your home is uninhabitable. Many policies also include limited coverage for masonry chimneys, swimming pools and detached structures, which are often the first things to fail in a strong shake.
Earthquake deductibles are a percentage of the dwelling limit rather than a flat dollar amount, commonly 5% to 25%. On a home insured for $1.2 million, a 10% deductible means the first $120,000 of damage is yours. Choosing a lower deductible raises the premium but is often worth it for older homes; we model several combinations before you decide.
The California Earthquake Authority writes through participating insurers and offers flexible limits and deductibles; private and surplus-lines carriers sometimes beat it on price for newer construction. A bolted foundation, braced cripple wall and strapped water heater can earn a retrofit discount and materially reduce your actual risk. We compare CEA and private options side by side.