Earthquake Insurance When You Have the California FAIR Plan: CEA, DIC or a Private Quake Policy

No, the California FAIR Plan does not cover earthquake damage, but it does pay for fire that follows an earthquake. Its dwelling policy excludes earth movement, including earthquake, "unless direct loss by" fire or explosion results.^[1] For the shaking itself you need a separate earthquake policy. As a FAIR Plan policyholder you can add a California Earthquake Authority (CEA) policy through the FAIR Plan, which is a CEA participating insurer, but only alongside an in-force FAIR Plan policy.^[2] The other route is a private stand-alone earthquake policy.

This guide is for a California homeowner who has, or is about to get, a FAIR Plan policy and wants to know how to cover earthquake. It compares the CEA policy, a difference in conditions (DIC) policy and private earthquake programs, and explains what to ask for. If you are still putting your FAIR Plan coverage together, start with our FAIR Plan page and our FAIR Plan plus DIC page. For a quake quote, use our earthquake insurance page.

Does the California FAIR Plan cover earthquakes?

No. The FAIR Plan dwelling policy lists earth movement as an exclusion: earthquake, landslide, mine subsidence, mudflow, and earth sinking, rising or shifting. The exclusion does not apply to "direct loss by" fire or explosion that results.^[1] So if an earthquake cracks your foundation, the FAIR Plan doesn't pay. If the earthquake breaks a gas line and the house burns, the fire is covered up to your FAIR Plan limits.

The Department of Insurance notes that state law requires homeowners and renters policies to cover fire caused by or following an earthquake whether or not you buy earthquake coverage.^[8]

Can I get a CEA earthquake policy with the FAIR Plan?

Yes. The FAIR Plan is a participating CEA insurer and sells CEA coverage to customers with a FAIR Plan policy. It offers CEA policies for 1–4 unit dwellings, condominium units, renters and mobile or manufactured homes.^[2] The catch is the word "companion": "You must have an in-force California FAIR Plan policy to qualify for CEA coverage."^[2] In the FAIR Plan's broker system, a CEA application needs the companion FAIR Plan policy number.^[9]

What a CEA homeowners policy offers:

• Deductibles of 5%, 10%, 15%, 20% or 25% of the dwelling limit. Dwellings insured for more than $1 million, and pre-1980 homes on raised foundations without a verified retrofit, choose from 15%, 20% or 25%.^[3]
• Building code upgrade of $10,000 included, with higher limits available.^[3]
• Emergency repairs with no deductible on the first $1,500.^[3]
• Retrofit discounts of up to 25% for older houses that have been properly retrofitted.^[3]

The Department of Insurance adds that CEA policies cover personal property starting at $5,000 and additional living expenses while the home is repaired, and exclude pools, fences, landscaping and separate structures.^[8]

Does a DIC policy cover earthquake?

Usually not. A DIC policy exists to fill what the FAIR Plan leaves out: theft, water damage, liability and broader perils. Most DIC forms exclude flood and earthquake just as homeowners policies do, so earthquake stays a separate policy.^[4] Aegis, for example, describes its DIC as covering "water damage, collapse, theft & liability" alongside a FAIR Plan policy.^[10] Read the DIC form you are offered and ask the broker directly whether earthquake is excluded.

So a complete FAIR Plan setup is often three policies: the FAIR Plan for fire, a DIC for most of the rest, and an earthquake policy. Our DIC guide explains how the first two fit together.

What private earthquake insurance can I buy instead of CEA?

Private stand-alone earthquake programs also write California homes, and some accept a FAIR Plan policy as the underlying coverage. They differ from CEA mostly on deductibles, limits and eligibility.

Neptune's approach stands out for FAIR Plan owners with expensive homes. Its sheet shows a $4 million home with $2 million of damage: a conventional policy with a 15% deductible would pay $1.4 million, while Neptune pays $2 million once the deductible waiver triggers.^[5] Each quote names the insurer and whether it is admitted in California.

GeoVera's program is written by Homesite Insurance Company of California. Before its pause, Menlo's walks of GeoVera's quoting system included a condo whose underlying coverage was a FAIR Plan plus DIC combination, so FAIR Plan policyholders were in scope.^[7] GeoVera's underwriting manual also sets a moratorium on new business for at least 60 days after a magnitude 5.0 or greater earthquake in an affected area.^[11]

How much does earthquake insurance cost with the FAIR Plan?

It depends on the home's value, construction, age, foundation, soil and location, and on the deductible you pick. CEA's retrofit discount can take up to 25% off for a qualifying older house.^[3] GeoVera's manual shows how its rate is built: a territory base rate adjusted for construction, number of levels, deductible and options, plus a $40 policy fee.^[11] We don't publish a typical earthquake price, because we don't yet have enough of our own earthquake quotes to give a representative figure.

What should I ask before I choose?

1. Check your FAIR Plan policy number and limits

   A CEA policy needs the companion FAIR Plan policy number, and GeoVera starts its earthquake dwelling limit at the underlying policy's dwelling limit.^[2][11]

2. Pick a deductible you could pay

   A 15% deductible on a $1 million dwelling limit is $150,000 before the policy pays for the dwelling. Compare that with your savings, and with a program that waives the deductible in a major quake.^[3][5]

3. Know your house

   Year built, foundation type (slab or raised), stories, construction and any seismic retrofit. These set eligibility and price on every program.^[3][6]

4. Confirm what the DIC excludes

   If your DIC excludes earthquake, as most do, nothing covers shaking damage until you add a quake policy.^[4]

This guide is for educational purposes and summarizes the FAIR Plan's dwelling policy and public pages, the California Earthquake Authority and Department of Insurance consumer pages, and carrier program documents dated 2020–2026. Coverage, eligibility and availability change, and your policy's terms control. Menlo Insurance Services (CA license 6020106) is a licensed broker and a registered FAIR Plan broker. It may earn a commission on some placements and does not guarantee that any coverage or price will be available. Non-admitted insurers are not backed by the California Insurance Guarantee Association.

The Bottom Line

The FAIR Plan pays for fire after an earthquake but not the shaking.^[1] To cover the quake itself, add a CEA policy through the FAIR Plan, which needs an in-force FAIR Plan policy and offers 5% to 25% deductibles, or buy a private stand-alone policy such as Neptune's, which waives its deductible in a major quake.^[2][3][5] A DIC policy usually won't fill this gap.^[4] Pick the deductible in dollars you could actually pay.