LA Connection Property Blog: Earthquake Preparedness - Earthquake Insurance for Condos

Earthquake Preparedness - Earthquake Insurance for Condos

California Earthquake Authority

California Earthquake Authority

Admitted Carriers: An "admitted carrier" is an insurance company that has submitted its insurance rates to California's Department of Insurance for approval. Once approved, the carriers are required to use those rates with all customers equally. The Department also review the carrier's investments and reserves to make sure they are adequate. Admitted carriers are backed by California's Insurance Guarantee Association (CIGA). In the event the carrier goes bankrupt, the CIGA covers claims up to the insured's policy limit or $500,000, whichever is lower.

Non-Admitted Carriers: Non-admitted carriers, also called "surplus lines," are licensed to do business in California. They are required to go through an approval process with California's Department of Insurance to make sure they are financially sound. They are not required to have their rates approved by the Department and can price their insurance to meet perceived risk. This allows them to insure high-risk clients that might otherwise be uninsurable by admitted carriers.

Comment balloon 2 commentsCOMPASS PALM SPRINGS | Stewart Penn • April 29 2008 09:44AM


Stewart - this is great information to have.  I still have my condo in San Francisco and I have been considering whether or not to purchase earthquake insurance or self-insure.
Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 12 years ago

Joan - I'm happy you find this info useful.

As with all Insurance, people don't think about it enough until they need it - and then it's too late.

I have found that the California Earthquake Authority requires you purchase their insurance through an Insurance Broker. 


Posted by COMPASS PALM SPRINGS | Stewart Penn, COMPASS Palm Springs - Broker Associate (COMPASS) over 12 years ago

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