Earthquake and earth movement coverage usually is not written as a specific insurance policy but as an endorsement to an existing policy. In most circumstances this endorsement is added to a homeowners policy or property coverage on a commercial policy to cover specific buildings or property for a business.
Like flood insurance, there are many misconceptions about this coverage. Many people are under the assumption that their current policy covers this type of peril. It is, however, specifically EXCLUDED in policy language and definitions unless the policyholder has the endorsement. Consumers who are concerned about earthquake and earth movement (including sinkhole and mud slide risks) should look into purchasing this coverage.
Pricing depends on many variables, most importantly the location of the risk. Insureds in West Tennessee, certain areas of Missouri, and the west coast of California are charged accordingly because of the high risk nature of their location and their proximity to fault zones.
Unlike most policies, the deductible for this coverage is generally a percentage amount of the value of the structure covered and not a flat, stated deductible.
For more information about this type of coverage please contact an FPA representative or Contact Us for a direct response.