Property Insurance FundamentalsQuestion 145 of 158
A California homeowner asks whether his standard HO-3 policy covers damage caused by an earthquake. The CORRECT answer is:
a.No, and earthquake coverage is not legally available in California
b.No, earthquake is excluded; insurers must OFFER earthquake coverage separately (via the CEA or a stand-alone policy)
c.Yes, but only if the policy was issued before 1994
d.Yes, earthquake is a basic peril always included in the HO-3
Explanation
Earth movement, including earthquake, is excluded under standard HO-3 forms. California Insurance Code §10081 and §10089 require admitted residential insurers to OFFER earthquake coverage, typically through the California Earthquake Authority (CEA) or as a separate stand-alone policy.
Law Reference: Cal. Ins. Code §10081, §10089Practice all 158 questions free — no signup required.
Related questions on this topic
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