A California homeowner wants earthquake coverage. Which statement is MOST accurate about earthquake insurance in California?
Explanation
California insurers that sell residential property coverage must offer earthquake insurance. Most policies are written through the California Earthquake Authority (CEA), a publicly managed, privately funded pool, although private market options also exist. Earthquake deductibles are notably high and typically expressed as a percentage of the dwelling Coverage A limit, commonly 10% to 25%, not a flat dollar amount. NFIP is for flood, not earthquake.
Law Reference: California Insurance Code §10081 (CEA); CEA program rulesThis topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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