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Rate & Form Filing 2019

The California Department of Insurance has approved a CEA rate and form filing effective July 1, 2019.

New rates will be implemented on each July 1 for three consecutive years, beginning July 1, 2019 and ending July 1, 2021. The overall rate deduction at year three is 1.7%. CEA policyholders may see their rates increase, decrease or remain stable, depending on the product, property location, and/or other rating factors.

New and renewal CEA earthquake insurance policies on or after July 1, 2019, will include the following changes.

Rating Territories

For all products (Homeowners, Homeowners Choice, Mobilehome, Mobilehome Choice, Condominium, and Renters), there are five new rating territories: 1, 3, 16, 21, and 28. Territory 4 has been removed.

These changes are reflected in the premium calculator.

Year of Construction

Homeowners and Homeowners Choice Policies

A new rating category for dwellings built after 2004 will be added so that the year of construction categories are:

  • 2005 or later
  • 1990 – 2004
  • 1980 – 1989
  • 1960 – 1979
  • 1940 – 1959
  • 1939 or earlier

Mobilehome policies will now be rated based on the year of construction categories shown below:

  • 1995 or later
  • 1975 – 1994
  • 1974 or earlier

These changes are reflected in the premium calculator.


Homeowners and Homeowners Choice Policies

The foundation type definitions have been modified for added clarity.

  • Slab foundation
  • Raised foundation
    • Cripple wall foundations
    • Continuous concrete-stem-wall
    • Post-and-pier or a post-and-beam
    • Unreinforced masonry-brick, concrete block/stone
    • A house that is constructed on a raised foundation, but has an attached garage, with or without living space above the garage, on a slab foundation is considered to have a raised foundation for CEA rating purposes.
  • Other foundation type
    • House built above a full or partial basement
    • Houses with more than one foundation type
    • Any foundation that does not meet the definition of a slab or raised foundation

These changes are reflected in the premium calculator.

Roof Type

Homeowners and Homeowners Choice Policies

The following roof types will be considered as rating factors:

  • Composition
  • Wood Shake or Wood Shingle
  • Tile or slate
  • Other

If a dwelling has multiple roof types, the majority (51% or more) roof type must be stated on the application and used to determine premium.

These changes are reflected in the premium calculator.

Hazard Reduction Discount

Homeowners and Homeowners Choice Policies

Single family houses built before 1980 may be eligible for a premium discount if ALL the following exist:

  1. the construction is wood-frame; and
  2. the foundation is a raised or other foundation type; and
  3. the dwelling is anchored to the foundation in accordance with California Existing Building Code (CEBC) standards; and
  4. the water heater is properly secured* to the building frame.

If the dwelling has:

  • Cripple walls, they all must be braced in accordance with CEBC standards, as determined by an inspection conducted in accordance with the CEA Earthquake Insurance – Dwelling Retrofit Verification Form (PDF) Requirements; or the home has a valid Brace + Bolt verification number.
  • A post-and-pier, post-and-beam, or unreinforced masonry brick/stone foundation, the dwelling must, in compliance with CBC standards, have foundations that are placed continuously under all exterior bearing walls, be anchored to the perimeter foundation. In addition, all cripple walls must be braced as noted above.

*In accordance with Guidelines for Earthquake Bracing of Residential Water Heaters (California Department of General Services, Division of the State Architect).

Foundation Type Year of Construction
  1940 - 1979 1939 or earlier
Slab foundation N/A N/A
Other foundation - credit verified 10% discount 15% discount
Raised foundation - credit verified 20% discount 25% discount

Please note:

  • Not all raised or other foundation types qualify for this discount.
  • To qualify for the discount, a homeowner must submit a completed CEA Earthquake Insurance – Dwelling Retrofit Verification Form (PDF) to the participating insurer. A completed form must have either of the following: signed (by a licensed general contractor or a civil or structural engineer); or, has a valid Brace + Bolt verification number.
  • The 5% self-verified discount, which has existed in past years, will no longer be available after June 30, 2019.

CEA policyholders will receive a premium discount if:

  • The mobilehome is reinforced by an Earthquake Resistant Bracing System (ERBS) certified by the State of California Department of Housing and Community Development; or
  • The mobilehome has been installed on an approved foundation system in accordance with subdivisions (a) or (b) of section 18551 of the California Health and Safety Code.

In order to obtain the discount, policyholders must submit to the participating insurer a copy of a final inspection report that verifies prior issuance of a building permit and that the system and installation meet one of the eligibility criteria above.

Additional Resources for you

Want the above information in handout format? Download our PDF now!

Rate & Form Filing Fact Sheet for Agents (PDF)

And, we've created a webpage for consumers about the changes they may see to their CEA earthquake insurance premiums. Visit our Premium Changes page today to take a look at what we're saying.

Ready for More?

For more information on CEA earthquake insurance policy coverage choices and deductible options, visit our earthquake insurance policies pages for agents.

Want a deeper dive?

In order to confidently and accurately perform an in-depth policy review to best support your customers, we strongly encourage you to take our free agent training course. Once you pass, you’ll earn 2 CE credits and be automatically enrolled in our special Marketing Value Program, which offers you free sales support and promotional items for your customers!

Premium Calculator for Agents

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