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 automatically included in every HO-3 sold in California
b.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%
c.Earthquake coverage uses the same standard deductible as fire (typically $500)
d.Earthquake coverage is provided by the federal NFIP program
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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