(July
2020)
This
form provides coverage for direct loss caused by earthquake to property covered
under Section I. The Insurance Services Office’s (ISO) definition of
“earthquake” includes shock waves or tremors that occur before, during or after
a volcanic eruption. All earthquake shocks that occur within a 72-hour period
are grouped together and treated as a single earthquake.
The
Earthquake Endorsement does not cover loss resulting directly or indirectly
from either of the following:
·
Any form of flooding or actions of tidal waves
and tsunami, whether caused by, resulting from, contributed to, or aggravated
by earthquake.
·
Costs related to filling-in land
Further,
there is no coverage for loss to exterior veneer. The value of exterior masonry
veneer will be deducted before applying the deductible clause. For the purpose
of this exclusion, stucco is not considered masonry veneer.
However,
the insured has an option. When it is marked on the space provided on the
endorsement, the exclusion for masonry veneer is eliminated. Subsequently, coverage
would then include the veneer’s value in the listed limit.
This
coverage does not increase the limits of liability stated in this policy.
The
Section I A.2.earth movement
exclusion is NOT eliminated. It is only modified so it does not apply tor loss
caused by earthquake. Permitted coverage includes loss caused by land shock waves or tremors,
which may occur before, during, or after a volcanic eruption.
Note: Losses due to landslides, mudslides,
subsidence, and other types of earth movement remain excluded.
When
a loss is covered under the earthquake endorsement, a special deductible
replaces any other deductible provision in the modified policy. This form
obligates a carrier to pay for losses under Section I property coverages
(except Coverage D - Loss of Use and Additional Coverages) that exceed the
earthquake deductible appearing in this endorsement.
In
determining the amount, if any, that will be paid for loss or damage, a
percentage deductible applies. The endorsement will list the exact percentage
amount that will apply to the larger of either Coverage A - Dwelling, or
Coverage C - Personal Property. In no instance will the total deductible be
less than $500.
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Example:
Petunia Jostleshack’s HO policy has a Coverage A limit of $184,000 and
Coverage C limit of $100,000. It includes a HO 04 54 form with the following
Schedule: Earthquake
Deductible - 7% Veneer
Masonry Exclusion: X
Does Not Apply Petunia’s home is completely destroyed by an earthquake.
Her deductible for the loss is $184,000 X .07 or $12,880. |