Bay Area Home Insurance Provider, EQ Insurance Service Explains the California Earthquake Authority’s Policy Disclosure

Walnut Creek, California (EastBayDaily) — Bay Area home insurance, EQ Insurance Service announces they recently discovered that the California Earthquake Authority’s (CEA) Policy Disclosure needs further explanation. For all current CEA policyholders and those individuals looking to pick up the coverage, it is important to carefully read their policy disclosure. “Do you know if you have a CEA policy? Did your CEA agent go over the issues highlighted with you and provide you with an alternative insurance program that has a guaranty and does not surcharge for future premiums,” asks Johnny Huang of EQ Insurance Service.

The California Earthquake Authority is a publicly managed, privately funded organization that provides catastrophic residential earthquake insurance in the Bay Area. EQ Insurance warns homeowners that they could be facing a bigger problem than the damage from an earthquake.

According to CEA’s policy disclosure, if losses from an earthquake exceed the available resources of the CEA, this policy is not covered by the California Insurance Guaranty Association. Therefore, the California Insurance Guaranty Association will not pay the policy holders’ claims or protect their assets if the CEA becomes insolvent and is unable to make payments as promised. Also, CEA has the right to subject policy holders to additional charges of up to 20 percent of the premium if an earthquake or series of earthquakes have exceeded the CEA’s available financial resources. This means that homeowners may pay more premiums than their original quote had stated.

It is EQ Insurance’s stance that the CEA should be required to explain why a homeowner should pay a premium for a policy that has a good chance of never paying off when a catastrophe hits or why it is appropriate to charge customers more than the agreed upon sum. It was also recently discovered that the CEA is an insurance program run publicly and is not an actual insurance company.

It is better for homeowners to get quotes from insurance companies that participate in the California Guaranty Association and guarantee to pay claims up to $500,000 in the event the insurance company becomes insolvent. EQ Insurance Service will provide homeowners with an earthquake policy that has a guarantee to meet the needs of every family when this life-threatening catastrophe strikes. “It would be beneficial for homeowners to obtain quotes from companies that have backing from the California Guaranty Association by insurance companies,” said Huang.

For more information, call (866) 945-8800 or visit

About EQ Insurance Service Bay Area EQ Insurance Service in Walnut Creek has more than $10 million in written premium, providing claimants the access to insurance companies that can offer the most comprehensive earthquake policy. They can also provide home insurance and commercial insurance. In the event of an earthquake, having the ability to keep a quality living standard while repairing a home is important.


Johnny Huang