Homeowners deductibles are usually a flat dollar amount, such as $2,500. Earthquake deductibles are usually a percentage of the coverage amount, not of the loss. That one difference changes the math completely.

Minimum offer cap: §10089(b) limits the deductible on the minimum dwelling and contents coverages to 15% of the coverage provided for the dwelling. On a $500,000 dwelling, the deductible can be at most $75,000. Other coverage approved under §10089(c) may differ, as long as at least one offered coverage meets the minimum rules.

CEA example: a CEA deductible is a percentage of the Coverage A and B limit. With a $600,000 limit and a 15% deductible, the deductible is $90,000. A $70,000 earthquake loss is below it, so the CEA policy pays nothing. The required offer notice warns that a covered loss below the deductible may bring no payment.

The trade-off: the §10083(a)(2) offer language says a lower deductible is available for an additional premium. A higher percentage deductible saves premium, but the insured keeps a larger share of every loss. Either way, the deductible stays a percentage, unlike the flat-dollar homeowners deductible.