Homeowners InsuranceQuestion 143 of 215
Under California Insurance Code §10081, when must an insurer that writes residential property insurance offer earthquake coverage to the applicant or insured?
a.At the time the policy is first issued and again every other renewal
b.Only after the first claim is paid
c.Only when the property is located in a high-hazard fault zone
d.Once every five years
Explanation
California Insurance Code §10081 requires every insurer that writes residential property insurance in California to offer earthquake coverage at the time the policy is first issued, and again at least once every other renewal (i.e., every two years). Most insurers satisfy the requirement by referring the buyer to the California Earthquake Authority (CEA) for a separate companion policy.
Law Reference: Cal. Ins. Code §10081 (mandatory offer of earthquake insurance)Practice all 215 questions free — no signup required.
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