Standard homeowners insurance does not cover earthquake damage, so the real question is whether you want to carry that risk yourself — and only you can answer that.
How to weigh it
- It's separate: earthquake coverage is an add-on or standalone CEA policy, not part of your standard policy.
- Deductibles are high: quake policies carry percentage-based deductibles, so they protect against catastrophic loss more than minor cracks.
- Consider your equity: the more equity you have, the more you have to lose in a major event.
- Construction matters: older homes, soft-story, or unretrofitted foundations carry more risk — retrofits can lower it.
Many Simi Valley owners weigh the premium against the worst-case scenario and their ability to rebuild out of pocket. There's no universal right answer.
For the details, see my guide to California Earthquake Authority coverage in Simi Valley.
Frequently Asked Questions
Is earthquake insurance required in California?
No, it is not legally required, and lenders typically don't mandate it either. It's a personal risk decision. Because standard homeowners policies exclude quake damage, going without it means you'd cover any earthquake losses yourself.
Why are the deductibles so high?
Earthquake policies use percentage deductibles (a share of your dwelling coverage) because they're designed for catastrophic, region-wide events. They protect your ability to rebuild after a major quake rather than reimburse small repairs.
Can a retrofit lower my risk or premium?
Often, yes. Seismic retrofits — like bolting the home to its foundation or bracing a soft-story — can reduce damage risk and may qualify for premium discounts. Ask a licensed insurance professional about retrofit credits.
