Retrofitting an older home for earthquakes makes it safer and can pay off in insurance and incentives. The Earthquake Brace + Bolt program is the best-known help available, and I encourage owners of older homes to look into it.
What retrofitting involves
A typical seismic retrofit on an older home includes bolting the house to its foundation and bracing the cripple walls (the short walls in the crawl space). These steps help the home stay on its foundation during shaking, reducing damage and improving safety.
The Earthquake Brace + Bolt program
Earthquake Brace + Bolt is a program that offers grants to eligible California homeowners to help cover the cost of a qualifying seismic retrofit. Availability is often limited and may use registration windows, and eligibility depends on factors like the home's age, type, and location. Confirm current availability and eligibility with the program.
Possible tax treatment
Certain qualified earthquake retrofit grants have, at times, been eligible for favorable tax treatment — for example, being excluded from income for state purposes. Tax rules change and depend on the specific program and your situation, so this is exactly the kind of question to confirm with a CPA rather than assume.
Insurance benefits
Beyond grants and possible tax treatment, retrofitting can reduce your earthquake-insurance premium, since a retrofitted home is generally lower risk. Some insurers and the California Earthquake Authority offer discounts for qualifying retrofits. Ask your insurer what documentation they require.
Why it matters for older homes
Many homes in our area predate modern seismic standards. For owners of older houses, a retrofit can be one of the highest-value safety improvements available — and the combination of grants, possible tax treatment, and insurance savings can soften the cost. It can also be a selling point when you list.
Taking action
- Check whether your home is a candidate for retrofitting.
- Look into current Earthquake Brace + Bolt availability and eligibility.
- Confirm any tax treatment with a CPA.
- Ask your insurer about retrofit discounts.
Frequently Asked Questions
What is earthquake retrofitting?
Earthquake retrofitting strengthens a home against quake damage, typically by bolting the house to its foundation and bracing the cripple walls in the crawl space. These steps help the home stay on its foundation during shaking, reducing damage and improving safety. It is especially valuable for older homes built before modern seismic standards.
What is the Earthquake Brace + Bolt program?
Earthquake Brace + Bolt (EBB) is a California program that offers grants to help eligible homeowners offset the cost of a qualifying seismic retrofit. Availability is often limited and may use registration windows, and eligibility depends on the home's age, type, and location. Confirm current availability and eligibility with the program.
Are earthquake retrofit grants taxable?
It depends and rules change. Certain qualified earthquake retrofit grants have at times received favorable tax treatment, such as being excluded from income for state purposes, but this depends on the specific program and your situation. Because tax rules vary, confirm the current treatment of any grant you receive with a CPA.
Can retrofitting lower my earthquake insurance?
Often yes. A retrofitted home is generally lower risk, so some insurers and the California Earthquake Authority offer premium discounts for qualifying retrofits. The discount and required documentation vary by insurer. Ask your insurer what retrofit measures qualify and what proof they need, and confirm details with a licensed insurance professional.
Is retrofitting worth it for an older home?
For many older homes built before modern seismic standards, a retrofit is one of the highest-value safety improvements available. The combination of possible grants, favorable tax treatment, and insurance savings can offset the cost, and it can be a selling point when you list. Weigh your home's risk and consult the relevant professionals.
How do I get started with a retrofit?
Check whether your home is a candidate based on its age and construction, look into current Earthquake Brace + Bolt availability and eligibility, confirm any tax treatment with a CPA, and ask your insurer about retrofit discounts. A qualified contractor can assess your home and perform the work to program standards.
