1. What is the CEA Earthquake Insurance Premium?

The CEA (California Earthquake Authority) earthquake insurance premium is calculated based on the base rate, coverage amount, and seismic factor specific to your location and property characteristics.

2. How Does the Calculator Work?

The calculator uses the CEA premium formula:

Where:

• \( BaseRate \) — The base rate per $1,000 of coverage
• \( Coverage \) — The total coverage amount in dollars
• \( SeismicFactor \) — Location-specific seismic risk factor

Explanation: The equation accounts for the basic insurance rate, the amount of coverage desired, and the seismic risk of the insured property's location.

3. Importance of Premium Calculation

Details: Accurate premium estimation is crucial for budgeting earthquake insurance costs and understanding the relationship between coverage levels and premiums.

4. Using the Calculator

Tips: Enter base rate in dollars, coverage amount in dollars, and seismic factor (a dimensionless number typically between 0.5 and 3.0). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my base rate?
A: Base rates are typically provided by CEA or your insurance agent, based on your policy details.

Q2: How is the seismic factor determined?
A: The seismic factor is based on your property's location, soil type, and construction characteristics.

Q3: What coverage amounts are typical?
A: Coverage amounts typically range from $100,000 to several million dollars, depending on your property value.

Q4: Are there discounts available?
A: Yes, CEA offers discounts for retrofitted homes and other risk mitigation measures not reflected in this basic calculation.

Q5: Does this include all policy fees?
A: This calculates the basic premium only. Additional fees and surcharges may apply to your final policy cost.