How to Get an extra Day of Earthquake Insurance with the CEA for no Cost

QuakeCovPosted in Earthquake Insurance Basics last updated on April 7, 2024

The California Earthquake Authority has a back door to allowing a Day of Extra Insurance at what seems is no cost. We won’t say its free, but… We use wording direct from the CEA insurance manaul in this post.

CEA and an the Secret Extra day of Quake Insurance

Free, No Charge, An Extra Day on us. With inflation and costs raising everywhere [especially insurance costs] -would getting something with for no additional cost be nice?

In the world of Insurance, depending on the jurisdiction that you are in – the term free when used in conjunction with insurance – may not be allowed. However when you do not have to pay for something – free is a darn good word. However we are not referring to this as free, but as a “not counted… day [of] premium…”

An Extra Day of CEA Earthquake Insurance:

The California Department of Insurance is the main Earthquake Insurer in the state of California. They partner with dozens of home insurers in the great state of California. The CEA is based in California and is a creation of the state and is considered a private / public enterprise.

Unbeknownst to most there is a back door way to get one full extra day of Earthquake Insurance with the CEA. But how do you do this? Where and how do you get that one extra day of earthquake premium?

According to CEA Accounting and Procedures Manual:

According to the California Earthquake Authortiy Accounting and Procedure manual, dated 07/2019. In the section Issuing a CEA Policy, Section 3 Endorsements:

“The CEA always uses a 365-day year when counting the number of days to charge premium, even if the policy or endorsement term contains a leap day; February 29 is not counted as a day for premium calculations.” Lets repeat some of that: “Feb 29th is NOT counted” in “premium calculations.”

Put another way – adding a 366th day on the calendar of the year, comes at no additional cost to you the consumer, according to the CEA manual. They say it themselves: “February 29 is not counted as a day for premium calculations.”

From reading the CEA manual it seems clear that Feb 29th is “not counted… day [of] premium…” Problem is that day happens roughly only every four years.

February 29 is not counted as a day.

Caveats to Earthquake Insurance with the CEA for no Cost [at least for a day]:

There are numerous caveats to this. These are some, but not all the caveats: First you must purchase the Earthquake policy through a CEA insurer. Second you must have it in force during a leap calendar. Third, you are more than likely going to have to keep the earthquake insurance for the entire year. Is getting one day with no charge exciting for you? It might not be.

About Leap Years:

Leap years happen every four years. Except if the year is divisable by 100 [and not 400.] Leap days are obviously not common. According to Leap Frog “The first leap year was introduced in 46 BCE by Julius Caesar of Rome.” Additionally “There are 525,600 minutes in a typical calendar year. On leap years, there are 527,040 minutes.” People born on Leap years are sometimes known as Leaplings.

Does This Mean that you Should Wait to Purchase a CEA plan During a Leap Year?

No! Dont wait to purchase earthquake insurance because of this. Earthquake insurance is a needed financial and risk management tool. Millions of Californians are in need of earthquake insurance. Don’t wait to purchase earthquake insurance until later.