California Earthquake Authority
The Californian Earthquake Authority (CEA), founded In 1996, following the massive Northridge Earthquake, is a privately financed, publicly managed, non-profit organization headquartered in Sacramento. The CEA provides earthquake insurance to homeowners, mobile home owners, condominium unit owners, and renters throughout California. Polices are offered· through participating insurance companies, rather than directly from the CEA. The CEA controls approximately 67% of the market for residential earthquake insurance in California but only about 14% of residential policyholders have chosen to obtain coverage. OTC Insurance Services can assist you in obtaining coverage.
CEA has an extensive website to that describes its courage's, deductibles, options, and other pertinent information. Coverage options for condominium units follow:
Coverages Condo-Unit Policy Additional Information
Building Property Optional Covers damage to parts of the inside of your condo unit, such as interior walls, fixtures and windows. May be purchased separately or with other coverages.
Coverage Limits Up to $100,000 Available in limits of $25,000, $50,000, $75,000 or $100,000.
Deductibles 5%, 10%, 15%, 20%, or 25% of Building Property limit Claim-payment example:
• If your condo-unit Building Property limit is $100,000, and
• You have purchased a 5% ($5,000) deductible, and
• Your condo unit suffers $75,000 in Building Property earthquake damage, then
• Your CEA claim payment would be $70,000 (your covered loss, less your deductible, up to the limit purchased).
Personal Property Optional (Included with Loss of Use Coverage) Covers damage to your belongings, such as TVs and furniture. May be purchased separately (combined with Loss of Use) or with other coverages.
Coverage Limits Up to $25,000 Available in limits of $5,000 or $25,000.
Deductibles 5%, 10%, 15%, 20%, or 25% of Personal Property limit Claim-payment example:
• If your condo-unit Personal Property limit is $5,000, and
• You have purchased a 15% ($750) deductible, and
• An earthquake causes $12,000 in damage to your covered belongings, then
• You will receive a payment for $5,000 (the covered damage, less the deductible, up to the limit of insurance purchased).
Loss of Use Optional (Included with Personal Property Coverage) Covers additional living expenses if you need to live and eat elsewhere because earthquake damage or a civil authority prevents you from residing in your home. It also covers you for lost rent if your unit functions as a rental and your tenant must move out. May be purchased separately (with Personal Property Coverage) or with other coverages.
Coverage Limits Up to $100,000 Available in limits of $1,500, $10,000, $15,000, $25,000, $50,000, $75,000 or $100,000.
Deductible None There is never a deductible for Loss of Use.
Loss Assessment Optional Helps pay your share of certain assessments that your homeowners association may levy on its members to pay for earthquake damage repairs or a master-insurance policy deductible. This coverage can help with assessments for repairs to certain exterior portions of your condo development and certain common areas. May be purchased alone or with other coverages.
Coverage Limits Up to $100,000 Available in limits of $25,000*, $50,000, $75,000 or $100,000.
* Only available if the Fair Market Value of your unit is $135,000 or less.
Deductibles 5%,10%,15%,20% or 25% Deductible options range from 5% to 25% of the Loss Assessment coverage limit.
Building Code Upgrade Included when Building Property is purchased. Local authorities require that rebuilding or significant repair work be performed in a manner consistent with current building codes (not the codes that were in effect when the property was built). This coverage helps pay expenses associated with code- compliant rebuilding or repairs.
Coverage Limit $10,000 Loss Assessment coverage already includes a $10,000 coverage limit for building-code-related upgrades assessed by an HOA. Building Code Upgrade covers up to an additional $10,000 to help bring your condo unit up to current building code standards as repairs are made.
Deductible Building Code upgrade is paid after your Building Property deductible is met Once your covered damage exceeds your Dwelling or Loss Assessment deductible, you could be eligible for payment for Building Code Upgrades, up to the coverage limit, to help bring your home up to current building code standards as repairs are made.
Emergency Repairs Included when Building Property Coverage or Personal Property Coverage is purchased. Covers earthquake-damage repairs that are needed to protect your condo unit or personal property from further damage (examples: repair broken windows or remove broken glass).
Coverage Limit $1,500 for repairs to condo unit
$1 ,000 for repairs to personal propertyEmergency Repairs provide coverage of up to $1,500 for repairs to the unit, and up to $1,000 for repairs to personal property.
Deductible Emergency Repairs are paid, up to the respective limits, after Building Property and Personal Property deductibles are met. There is no deductible for emergency repairs. Emergency repairs begin after the Building Property and Personal Property deductibles are met.
OTC Insurance Services
a California Corporation
5737 Kanan Road, Suite 630
Agoura Hills, CA 91301
Isaac Ortiz 818-429-8022 (Direct)
Office: 818-658-1500
CAInsuranceAgents.com
License # 3013582
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