A California landlord on a DP-3 asks whether a future earthquake that damages the rental house will be covered. Which response is correct?
Explanation
Earthquake is excluded under every Dwelling Policy form. A California landlord who wants earthquake coverage must obtain it through a separate endorsement or, more commonly, through a California Earthquake Authority (CEA) companion policy purchased through a participating insurer. Flood is similarly excluded and is obtained through the National Flood Insurance Program (NFIP). DP-3's open-perils language applies subject to the policy's specific exclusions, which include earth movement and water from flooding.
Law Reference: ISO Dwelling forms — Earthquake and Flood exclusions; CEA; NFIPThis 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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