Coverage description
An earthquake deductible applies a separate deductible to earthquake or earth movement loss, often as a percentage or scheduled amount. Forms can differ in the provisions, conditions and coverage they address.
How an earthquake deductible is calculated
An earthquake deductible replaces the policy's ordinary deductible for earthquake losses and is often a percentage of a limit rather than a flat amount. In HO 04 54, the homeowners earthquake endorsement, its dollar amount is the dwelling (Coverage A) or personal property (Coverage C) limit, whichever is greater, multiplied by the percentage in the schedule, and the total deductible is never less than $500. It applies to all loss payable under the property coverages except loss of use (Coverage D) and the additional coverages. Unless the schedule removes the masonry veneer exclusion, the value of exterior masonry veneer is deducted before the deductible applies. One or more shocks within a 72-hour period count as a single earthquake.
“The total deductible amount will not be less than $500.”
Coverage classification
- Form type
- Endorsements
Compare Earthquake deductible forms
| Form | Intent | Deductible basis | Coverage context |
|---|---|---|---|
Chubb National Insurance CompanyIncreased Earthquake Deductible HOME113CHUBB 02-19 Homeowners | Replaces the base deductible with a special earthquake deductible. | Applies separately to the coverage amount for the house and other permanent structures. | Extended replacement cost increases can change the deductible basis. |
BrightShore Insurance CompanyEarthquake Coverage HO 04 54 03 22 Homeowners | Adds earthquake coverage to the homeowners policy with a deductible that replaces any other deductible for earthquake loss. | Scheduled percentage of the Coverage A or Coverage C limit, whichever is greater, with a $500 minimum. | One deductible applies to the total of all Section I property loss except Coverage D and the additional coverages. |
Church Mutual Insurance Company, S.I.Earthquake and Volcanic Eruption Coverage with Percentage Deductible CP 10 40 02 19 Commercial Property | Adds earthquake and volcanic eruption coverage with a percentage deductible that replaces the coverage part deductible for those perils. | Scheduled percentage of the limit on the damaged property for specific insurance, or of its value in the latest statement of values for blanket insurance. | Separate deductibles for each building, personal property at each building and personal property in the open, applied after any coinsurance reduction. |
Hartford Fire Insurance CompanyEarthquake Percentage Deductible PC 45 15 01 21 Commercial Package | Adds an earthquake percentage deductible to a package property coverage part that applies regardless of any concurrent cause. | Scheduled percentage of the limit on the damaged building or business personal property; a blanket, combined or loss limit is not used. | Separate deductibles for each building, business personal property and business personal property in the open, at each insured premises. |
Notable clauses
“This deductible applies separately to each coverage amount for your house and other permanent structures”
Chubb National Insurance Company · Increased Earthquake Deductible · HOME113CHUBB 02-19
Coverage amounts. The deductible is calculated separately for each listed coverage amount.
“We will pay only that part of the total of all loss payable under all Section I – Property Coverages”
BrightShore Insurance Company · Earthquake Coverage · HO 04 54 03 22
One deductible across property coverages. The deductible is measured against combined dwelling, other structures and personal property loss rather than each coverage separately.
“Separate Deductibles are calculated for, and apply to, each building”
Church Mutual Insurance Company, S.I. · Earthquake and Volcanic Eruption Coverage with Percentage Deductible · CP 10 40 02 19
Per building. A loss to two buildings, or to a building and the personal property in it, triggers a separate percentage deductible for each.
“The Blanket, Combined or Loss Limit of Insurance is not used in calculating the amount of the deductible.”
Hartford Fire Insurance Company · Earthquake Percentage Deductible · PC 45 15 01 21
Blanket limits. The percentage is applied to the limit for the damaged property, or its statement of values, so a large blanket limit does not raise the deductible.
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Water backup endorsementA water backup endorsement adds or modifies coverage for water that backs up through sewers, drains or sumps. Compares two insurers' forms; 332 insurers file it.
Occurrence deductibleAn occurrence deductible applies one deductible when one occurrence causes losses under several coverage parts. Compares two insurers' forms; 64 insurers file it.
Aggregate deductibleAn aggregate deductible applies one retained amount across covered losses, coverage parts or locations. Compares Benchmark and Sentry forms; 123 insurers file it.
Agreed value coverageAgreed value coverage values covered property at a scheduled or agreed amount instead of replacement cost or ACV. Compares Harco and Grange forms; 260 insurers file it.
Earth movement exclusionAn earth movement exclusion limits coverage for earthquake, landslide, subsidence, sinking or shifting ground. Compares two insurers' forms; 263 insurers file it.
Loss payable clauseA loss payable clause names a party with an interest in covered property and sets how loss payments are made to it. Compares two insurers' forms; 539 insurers file it.
Flood exclusionA flood exclusion limits coverage for loss caused by flood, surface water, overflow, storm surge or related water. Compares two insurers' forms; 112 insurers file it.
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