Endorsements & LiabilityQuestion 91 of 158
A California homeowner wants earthquake coverage. Which statement is MOST accurate about earthquake insurance in California?
a.Earthquake coverage is offered through the California Earthquake Authority (CEA) or by some private insurers; deductibles are typically a percentage of the dwelling limit, often 10%-25%
b.Earthquake coverage is provided by the federal NFIP program
c.Earthquake coverage uses the same standard deductible as fire (typically $500)
d.Earthquake coverage is automatically included in every HO-3 sold 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 rulesPractice all 158 questions free — no signup required.
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