USAA Earthquake Insurance

Does USAA offer earthquake insurance in California?

The CEA USAA earthquake insurance partnership.

Highlights of USAAs earthquake offering.

Earthquake Insurance, From USAA:

Insurer USAA offers earthquake insurance through the CEA. USAA is one of the Participating Partners of the CEA. Patnership with the CEA means that USAA is able to offer earthquake policies alongside homeowners policies in the state of California. California insurance statute requires insurers to make offers of earthquake insurance to their insured every other year.

USAA Earthquake Insurance Coverage Options:

Coverage options for USAA earthquake policies first and foremost depend on the underlying homeowners/dwelling policy. In other words the coverages for the homeowners policy and the quake policy will be related. Additionally please note the endorsements that are available for the homeowners policy are often different for the earthquake policy.

USAA quake coverage options include:

Dwelling – Coverage for the main dwelling should a seismic event damage the home. When consumers purchase earthquake coverage, the dwelling coverage is typically what they are looking for. CEA quake policies contain significant deductibles, between 5% and 25%.

Personal Property – Personal property coverage contains all sorts of limits, so please read your policy. Earthquake coverage for personal property can be extremely useful for common household items that may be destroyed. Personal property coverage too, has large deductibles of between 5% to 25%.

Loss of Use – Seldom thought of, but actually exceptionally important. If your home is destroyed by an earthquake – where are you going to live? More important – how will you afford it? This necesary coverage can often go as high as $100,000. This coverage may also extend to lost rental income, USAA does offer Loss of Use coverage on their earthquake policies.

Building Code Upgrade – This coverage can help “with required costs of bringing damaged dwellings to current building codes.” Standard coverage on this is $10,000 but can be increased to $30,000.

Emergency Repairs: a coverage for a very small amount of up to $1,500 in coverage.

Masonary Vaneer Coverage – a limited coverage can help restore some masonary vaneer that is on the house. Inquire with your agent about this coverage and how it works. Limits exist on this coverage.

Breakables Coverage – Breakables coverage can provide “valuable fragile personal property like your wedding china, glassware, crystal, ceramic, pottery, porcelain, or marble items that are broken because of an earthquake.”

Loss Assessment – If you live in a property such as an HOA or Condo association it is important that you understand whom is responsible for rebuilding what. EQ loss assement coverage is not simple. But its important. Loss Assessment “means an assessment charged by an association of owners against all property owners in a common interest development that is properly and legally made as a result of a loss to structures or other real property contained within that common interest development, and those structures or other real property are owned by one or any combination of the following three categories: (i) all members of the association of owners collectively, (ii) the association of owners, or (iii) you.” It is imperative to understand that the “Assessment” must be made in regards to a covered peril for the Loss Assement coverage to be useful. CA CEA Loss Assessment Definition. If you own a property that is partially owned by an HOA, you should seriously consider Earthquake Loss of Use through USAA.

More coverage options are available, this is not intended to be a complete list.

About USAA:

According to the USAA website, they were “founded in 1922 when 25 Army officers decided to insure each other’s vehicles.” USAA is “among the leading providers of insurance, banking, investment and retirement solutions to members of the U.S. military, veterans who have honorably served and their families.”

The Insurance Group of Companies includes: United Services Automobile Association, USAA Casualty Insurance Company, USAA General Indemnity Company,Garrison Property and Casualty Insurance Company, USAA County Mutual Insurance Company, USAA Limited,USAA S. A., USAA Insurance Agency,USAA Life Insurance Company, USAA Life Insurance Company of New York,USAA Life General Agency, Inc. All of these in the insurance world.

In the Banking and Finance world, USAA consists of: USAA Investment Services Company, USAA Federal Savings Bank Member FDIC,USAA Savings Bank (USAA Credit Cards) Member FDIC,USAA Residential Real Estate Services, Inc., USAA Acceptance, LLC, USAA Acceptance III, LLC, USAA Mortgage Solutions. All listed on their corporate website. Additionally a company called “USAA Alliance Services, LLC (ASC)” exists as well.

USAA provides Financial, Banking, Insurance, and other money services to members. Members are “open to current and former military and their spouses.”

About the CEA:

The California Earthquake Authority, or CEA for short, is “one of the world’s largest providers of residential earthquake insurance…” The Company is based in California. The CEA sells quake policies alongside partner homeowner and dwelling policies.

Financial Strength Rating of your Earthquake Insurance Policy through USAA:

Countless articles on line will solely report the financial strength rating of the Partnering Insurer. We report both the Partnering Insuerer and the CEA’s Financial Strength Rating.

According to AM Best in August of 2022, the Financial Stength Rating of United Services Automobile Association is an A++. An A++ rating for USAA is considered the highest FSR one can have. United Services Automobile Association is considered the ultimate parents of numerous USAA children.

However the California Earthquake Authority financial strength rating in August of 2022 is an A-. An A- FSR is considered the fourth highest financial strength rating. When purchasing an earthquake insurance policy through USAA this is the financial strength one should focus on: the CEA FSR.

USAA Financial Strenght Rating A++

CEA Financial Strength Rating A-

How to Buy USAA Earthquake Insurance:

To Purchase a USAA CEA earthquake policy, contact USAA directly. They are the only vendor available to sell USAA CEA earthquake policies. CEA partnering policies must be sold alongside the homeowner insurer. Please direct all questions regarding this program to USAA only.

If you have USAA Homeowners Insurance, Is the CEA the Only Option for EQ Coverage that you Have?

No, just because you have a USAA homeowner or dwelling policy does not mean that you must purchase your earthquake policy from them. You may have independent options available. Independent Earthquake Coverage options are available to millions of Americans. The CEA is typically not your only choice. Check with your local independent agent to inquire.

Why Does USAA Sell Earthquake Policies with the CEA?

Only USAA can answer this question specifically. However in general, most home insurance companies choose to write earthquake policies with a separate vendor for risk management related reasons. Earthquake claims are considered a form of Catastrophic risk.