Homeowners Policy (HO)Question 116 of 474
Damage caused by earthquake is generally covered under a standard California homeowners policy only when:
a.An earthquake endorsement is added or a separate CEA policy is purchased
b.The dwelling is insured to at least 80 percent of its replacement cost at the time of the earthquake
c.The dwelling is less than 30 years old
d.The Governor declares a state of emergency, which under California law suspends the earth movement exclusion for 180 days
Explanation
Earth movement, including earthquake, is a standard exclusion. Coverage exists only when the insured adds an earthquake endorsement to the homeowners policy or purchases a separate California Earthquake Authority (CEA) or private earthquake policy.
Law Reference: ISO HO form Section I exclusionsThis topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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Related questions on this topic
- A wildfire that is the subject of a Governor-declared state of emergency destroys an insured's California home. Under Insurance Code §2060, for how long must the policy's additional living expense coverage run?
- After a Governor-declared wildfire disaster, for how long does California Insurance Code §675.1 prohibit an insurer from non-renewing a residential property policy because of the property's location in the affected area?
- Which of the following losses is EXCLUDED under a standard homeowners policy without an additional endorsement or separate policy?
- To receive full replacement cost on a dwelling loss under a standard HO-3, the insured must insure the dwelling to at least what percentage of its full replacement cost?
- A California homeowners policy has been in force for eight months. Under Insurance Code §676, on what basis may the insurer now cancel it mid-term?
- The standard mortgage clause requires the insurer to give the mortgagee written notice of cancellation at least how many days in advance?
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