Pacific Specialty Exits California Earthquake Insurance Market: What You Need to Know
May 27, 2025
Another earthquake insurance provider has exited California’s market. This time, it’s Pacific Specialty Insurance Company, a name many homeowners in areas like Palm Springs, Palm Desert, and Northern Los Angeles relied on for affordable standalone earthquake insurance.
Effective January 1, 2025, Pacific Specialty has officially withdrawn from the residential earthquake insurance market in California.
🔍 What Did Pacific Specialty Offer?
Pacific Specialty was known for offering competitive earthquake insurance rates in select regions. While their coverage wasn’t the broadest—with limitations on things like pool damage and personal property sublimits—they provided accessible pricing, especially for homeowners in certain areas of California who needed basic coverage.
However, their policies lacked customization. You couldn’t adjust the personal property, other structures, or loss of use coverage to fit your specific needs—it was mostly fixed and tied to your dwelling coverage, much like a standard homeowners policy.
🔁 What Happens Now?
If you currently hold a Pacific Specialty earthquake insurance policy, here’s what’s changing:
- Your policy will not be renewed under Pacific Specialty.
- Instead, your coverage is being transferred to Palomar Specialty Insurance Company, a respected and financially stable earthquake insurance provider.
- Palomar offers more customizable coverage—including flexible options for personal property, other structures, and loss of use.
That sounds like a win, right?
Not so fast.
⚠️ What You Might Notice: Much Higher Premiums
Palomar’s rates may be significantly higher in certain areas than what homeowners were paying with Pacific Specialty—sometimes even double. This has caused concern among policyholders who are now wondering:
“Is earthquake insurance still worth it?”
In some cases, people are considering dropping coverage entirely. That’s risky.
💡 What You Can Do
If you’ve received a renewal notice—or expect one soon—and see a dramatic rate increase, don’t panic. You have options:
✅ 1. Work With an Independent Earthquake Insurance Agent
Unlike buying direct, working with an independent agent gives you:
- Access to multiple carriers (not just Palomar)
- A chance to compare premiums and coverage
- Guidance to customize your policy for what matters most to you
✅ 2. Explore Alternatives Like GeoVera, Zurich, and Others
Some carriers may offer:
- Lower rates in your zip code
- Better deductible flexibility
- Customizable limits for pools, fences, guest houses, and more
✅ 3. Balance Premiums With Deductibles
A good agent can help you explore different deductible levels to keep your policy affordable, while still providing real protection.
🏡 Final Thoughts
While Pacific Specialty’s exit from the earthquake insurance market may feel like a loss, it can actually be an opportunity to upgrade your coverage and get better protection—without overpaying.
📍 Need help reviewing your renewal or finding a better option?
Start your quote at 👉 EarthquakeAgent.com
Don’t wait until the next big one shakes your foundation. The right coverage is out there—we’ll help you find it.