Farmers Earthquake Insurance

How to Purchase an Earthquake Insurance with Farmers Insurance in California.

The CEA and Farmers Insurance Parternership Program.

Alternative Quake Policies for Farmers Homeowners,

About the Farmers CEA Earthquake Policy:

Farmers Insurance provides earthquake insurance through the California Earthquake Authority. These quake policies are provided through the CEA Parternship Program. Farmers provides the marketing, sales, financial, and other collarborative processes, while the CEA provides the actual coverage. Specific coverage levels and types are delininated by Farmers Insurance and through their agreement with the CEA.

How to Procure a CEA Policy through Farmers Insurance?

To purchase, add, or change any CEA policy that is paired or would be paired with a Farmers Policy – please contact your Farmers Agent or Farmers Insurance Directly. Please note that to purchase any CEA policy you must contact their partnering insurer. In other words you cannot contact the CEA or some other insurance agent. You must cotact Farmers to purchase a CEA policy.

Types of Earthquake Coverages that Farmers Provides through the CEA:

It should be understood that some of the coverage are different depending on what type of dwelling policy you have such as common homeowners or a condo policy, as examples. Check with your Farmers agent for more details on exact coverage uses, coverage amounts, and rules.

Dwelling Coverage: When consumers think of earthquake insurance they are typically thinking of the coverage for the house itself. The roof, the walls, the foundation, etc. Dwelling Coverage with the CEA comes with large deductibles, often ranging from 5% all the way to 25%. Dwelling coverage on the CEA form is NOT the same as your homeowners form. Ask your agent to explain this to you. A Farmers – CEA earthquake policy typically would see similar coverage amounts with regards to this.

Personal Property: Personal property is personal belongings such as Televisions, Furniture, Clothing, Other Electronics, etc. Speak with your local Farmers Agent about this coverage. Several limiting factors can come into play with earthquake coverage for personal belongings.

Loss of Use: “Covers additional living expenses if you need to live and eat elsewhere because earthquake damage or a civil authority prevents you from residing in your home.” Additionally if your property is rented out ” (fair rental value) is covered.” Source- CEA.

Loss Assessment: Loss Assessment coverage is complex. Typically can be very useful with Condo unit owners policies. LA can “help pay your share of certain additional assessments levied by your HOA on its members for earthquake-damage repairs or to pay a master-earthquake policy deductible.”

It should be additionally noted that “This coverage can help with charges for repairs to the exterior of your condo development or certain common areas, as well as building code upgrades.” Source-CEA. When insuring a condo unit owners policy – Loss Assessment coverage should not be overlooked.

Building Code Upgrade: If local authorities determine that “rebuilding or significant repair work be performed” then “this coverage [could] help pay expenses associated with code-compliant… repairs. Source-CEA.

Emergency Repairs: Up to 5% of your homeowners and personal property coverage may be available for damage from an earthquake that are needed to protect your propery from further damage.

Breakables: A small amount of coverage for certain breakable items may be covered.

Exterior Masonary: A very limited coverage option available for “nonstructural facing of brick, concrete, stone, tile, or similar material, attached to a backing as ornamentation.” It should be noted that according to the CEA: ” Stucco and exterior chimney facings are not considered exterior masonry veneers.”

About Farmers Insurance:

Farmers Insurance got it start around 1928 and is currently headquartered in Woodland Hills, California, USA. The insurer is currently owned by the Zurich Insurance Group. The insurer is sometimes confused with another personal lines insurer: State Farm. State Farm and Farmers are not related companies.

Farmers Insurance Group is a type of ‘Reciprocal Insurer’ and uses a couple of different insurance entities to place insurance business. Farmers Insurance ambition statement [pulled from their own site] is “Be the leader in delivering peace of mind, innovating for customers whenever and wherever they need us.“

Farmers provides both personal and commercial insurance policies in numerous US States around the country. As of the writing of this blog post – Farmers offers insurance policies in all 50 US States.

About the California Earthquake Authority:

The California Earthquake Authority is a public private insurance partnership that offers earthquake policies in the great state of California. The California Earthuake Authority typically goes by the abbreviation of the CEA. Occassionally in legal documents it is simply called the Authority. The company is based in Sacramento California and provides insurance policies through partner property insurance carriers. Not all admitted property insurers partener with the CEA.

The CEA partners with dozens of admitted insurers to provide millions of earthquake policies to Californians. Farmers is one of those partners.

Other Farmers Insurance Earthquake Options:

Homes insured by Farmers do not have to purchase their earthquake insurance through the CEA. Although the CEA can be the best option for numerous homes, it is not necesarily the best bet for numers Farmers customers. There are numerous independent earthquake providers that sell standalone earthquake policies to homeowners.

Contact QuakeCov or your independent broker for more information on purchasing a standalone earthquake policy.

Financial Strength Rating for Farmers Earthquake Insurance:

Both the CEA and Farmers Insurance have their own Financial Strength Rating [FSR].

Farmers Insurance Financial Strenght Rating, According to AM Best – the FSR of Farmers Insurance Exchange is an A. The ultimate parent identified is Zurich Insurance Group LTD. Farmers insurance is a rather complex financial organizational structure and has dozens of different sub insurance groups.

The California Earhthquake Authority Financial Strength Rating, According to AM Best – the FSR of the CEA is an A-.

Which FSR matters more in the event that you have an Earthquake policy from Farmers Insurance? Ask your Farmers Insurance agent to explain this.

Reasons for Purchasing an Earthquake Policy:

There are numerous reasons to consider the purchase of a quake policy. Peace of mind, the need for money to rebuild and live someplace. Mostly Earthquake insurance is part of a good solid financial plan.

Where did we Get our Information Concerning Farmers Insurance and their CEA Policies:

QuakeCov pulled some information direct from farmers.com in the research of this project. We also used wikipedia and AM Best, a insurance rating company. However much of the information is pulled direct from the CEA website. The CEA creates and manages many of the rules of the program.