Common Earthquake Dwelling & Contents Coverages and Limitations

Different Forms

• COMPREHENSIVE FORM: The Comprehensive policy lists one total amount of coverage which can be applied in any amount, up to the policy limit, to your dwelling, contents, loss of use, or any combination of the three.
• STANDARD FORM: The Standard policy covers dwelling amount up to the policy limit, and only includes loss of use coverage for $1,500, and contents coverage of $5,000.
• Both forms are subject to the policy deductibles, and offer the basic coverages below:

Special Limits of Liability

• $5,000 Chimneys, fireplaces, or masonry veneer
• $3,000 swimming pools, spas, or hot tubs
• $3,000 Fences
• $3,000 Retaining walls, driveways, patios or stairs (outside of the house foundation)
• $3,000 paintings, tapestries, art, glass windows, or similar property with artistic merit

Personal Property Limits of Liability

• $5,000 personal property limit on STANDARD FORM
• No limit on personal property on COMPREHENSIVE FORM - carrier will pay any amount up to total policy limit (COMPREHENSIVE FORM is MUCH BETTER coverage and worth the extra money!)
• $1,000 silver, gold, pewter, jewelry, furs, cameras, precious metals, musical instruments, sporting equipment, firearms, other valuable/collectible items.

Property Not Covered

• Trees, shrubs, lawns, other plants and landscaping
• Motor vehicles and accessories, watercraft, trailers, aircraft and parts
• Property of roomers or borders
• Books, accounts, currency, money or bullion, collections of any kind, property used in business, or business merchandise in storage
• animals, bird or fish

"Loss of Use" Coverages

• COMPREHENSIVE FORM does not limit coverage for loss of use, and is available up to policy limit. STANDARD FORM policy is limited to $1,500 coverage for additional living expenses until damage repaired or replaced
• If home is a rental home, coverages may be applied to loss of rental values.
• Coverages paid if civil authority prohibits you from using the residence premises.

Other Included Coverages

• Debris Removal
• Engineering and demolition costs (up to 5% of policy amount)
• Reconstruction up to Local Building Code Standards for retrofitting of the UBC codes (see sec. 2907, 2517 of the Building Code) up to $10,000
• Loss assessment coverage included for condo owners
• Glass and safety glazing coverage

Deductible

• Company will pay only that part of loss over policy deductible for the adjusted loss amount. (Adjusted loss means the total amount of loss you sustain for covered property subject to special limits of liability for provision A,C, & E.)

Policy Exclusions (Items NOT covered)

• Fire, Ordinance Law, Other Earth Movement (volcano, landslide, mudflow, etc.), Water Damage, Explosion, Neglect, War, Nuclear Hazard, Planning and Contruction or Maintenance coverages, Acts or decision of Government
• Property used for business purposes

Conditions and Duties

• You must maintain the policy limits to replace. Policies do not afford "guaranteed replacement coverages" as on some homeowners policies
• You must have an insurable interest (be on title of the home)
• You must maintain normal duties after loss, such as giving prompt notice of loss, protecting from further damages, show the damaged property to carrier, etc.
• Covered property will be settled at replacement costs without deduction for depreciation to replace with like kind and quality (excluding antiques, fine arts, unreplaceable items, etc.)
• Appraisals will be required if failure to agree on replacement of amount exists. Each party will pay their own appraiser
• No loss will be paid if there is concealment or fraud
• Cancellation: you may cancel this policy at any time if notice given in writing, and refund of unused portion will be given to insured
• Carrier may non renew giving at least 45 days notice
• These are the MAIN terms of this policy... Other terms of this policy are too detailed to list. See policy copy or agent for further details.

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