EARTHQUAKE insures against loss caused by an earthquake. Loss or damage caused by earth movement is excluded by all three primary causes of loss forms. Coverage for earthquake damage (but not all earth movement damage) is available in three different ways. The earthquake cause of loss may be included by using an earthquake cause of loss form. A difference in conditions (DIC) policy may be purchased with earthquake as a covered cause of loss, or a separate earthquake policy may be purchased from a nonstandard insurance company.

The first two options are the most cost effective, but the nonstandard market may be the only place to obtain this coverage in certain earthquake-prone areas or with certain types of properties. Deductibles are usually expressed as a percentage of the amount of insurance and range from 1% to 10%.
(Use ACORD Form #140)
Related PF&M Articles:
CP 10 40-Earthquake and Volcanic Eruption Endorsement
AAIS Difference in Conditions Form-Property Coverage Part Analysis
ISO Difference in Conditions Coverage Form Analysis