California Insurance: What You Need to Know

Separate coverage for damage caused by earthquakes, typically not included in standard homeowners policies and requiring a separate policy or endorsement with its own deductible.

Fair Access to Insurance Requirements Plan - state-mandated insurance programs providing property coverage to high-risk properties that cannot obtain insurance in the standard market, available in multiple states including California, Illinois, and Massachusetts.

California's state-run earthquake insurance program providing residential earthquake coverage, created after the 1994 Northridge earthquake when private insurers stopped offering earthquake insurance.

Damage of any origin sustained by a building where the cost of restoring the structure to its pre-damaged condition equals or exceeds 50% of the market value before the damage occurred. Substantially damaged buildings must be brought into compliance with current floodplain management regulations when repaired, including meeting elevation requirements. This applies to damage from any cause (flood, fire, earthquake, etc.), not just flooding. The 50% threshold is calculated using the building's market value excluding land value. Communities track cumulative damage over time to prevent property owners from avoiding compliance through multiple smaller repairs. Substantial damage determinations are made by local floodplain administrators.

Reinsurance coverage that protects against losses from catastrophic events such as hurricanes, earthquakes, or floods that affect multiple policies simultaneously. Also known as Cat Cover, this protects insurers from events that could threaten their solvency.