A Public Instrumentality of the State€¦ · GOVERNING BOARD: Governor Insurance Commissioner State Treasurer A not-for-profit provider of residential earthquake insurance PUBLICLY

A Public Instrumentality of the State

CALIFORNIA:MANDATORY OFFER LAW

Earthquake coverage is excludedfrom homeowners insurance policy

However, insurance companies are required to offer a separate earthquake insurance policy at time of homeowner policy sale.

2

CEA: ESTABLISHED IN THE WAKE OF NORTHRIDGE EQJanuary 17, 1994

3

Total Property Damage $40 Billion

Residential $20 Billion

1994: NORTHRIDGE EARTHQUAKE

AftermathMost insurance companies stopped writing Homeowners insurance

Insured Residential $10 Billion

4

JOE PUGLIESE/LOS ANGELES TIMES

AG

5

GOVERNING BOARD: GovernorInsurance CommissionerState Treasurer

A not-for-profit provider of residential earthquake insurancePUBLICLY MANAGED • PRIVATELY FINANCED

PRIVATELY FINANCED:

MISSION:

Non Voting: Assembly Speaker and Senate Rules Chair

1,050,000 Policyholders

EducateMitigateInsure

6

OVER THE LAST 20 YEARS…

CEA has lowered its rates by 55%

Housing reconstruction costs have increased by 170%...

Without these rate reductions, the average CEA premium would be more than twice as high as it is today.

7

“Mini-Policy” Today’s CEA options

Structure Replacement Cost Replacement Cost

Personal Property Coverage $5,000 Up to $200,000

Deductible 15% 5%, 10%, 15%,20% & 25%

Loss of Use Coverageadditional living expenses

$1,500 Up to $100,000

Mitigation Discount 0% 5%, 10% & 20%

TODAY: A NEW CEAProduct Enhancements

8

EarthquakeAuthority.comPremium Calculator

9


NorthridgeExample

ZIP: 91326

Year built: 1982

Insured Value: $546,000

Number of Stories: 1

Foundation: Slab

10


Deductible: 15%

Premium: $793/year

11


Deductible: 5%

Premium: $1,420/year

12


Deductible: 25%

Premium: $538/year

13

EQ INSURANCE TAKE-UP NOW 13.2%

2006–2015 average annual increase: 6,700

2016: 52,000

2017: 90,000

2018: 29,000Jan.-Nov.

14

CEA Policies in Force

EarthquakeBraceBolt.com

7,000+ Homes Retrofitted since launch in 201415


16

August 2014, Napa, California

JANIELE MAFFEI


• Jointly managed by CEA and Cal OES

• Launched in 2014

• Reimburse up to $3,000

• Pre-1979 houses

• Code-compliant retrofit

• Sill plate anchorage

• Cripple wall bracing

• Water heater bracing

17

18


A Public Instrumentality of the State€¦ · GOVERNING BOARD: Governor Insurance Commissioner State Treasurer A not-for-profit provider of residential earthquake insurance PUBLICLY

Documents