Earthquake Insurance Law & Legal Definition


Earthquake insurance refers to a property insurance which provides insurance against damage caused to a property by earthquake. In the U.S. earthquake insurance is more popular in California. The state legislature recognized the need for granting earthquake insurance after the event of 1994 Northridge earthquake.

The following is an example of the state statute (California) describing the requirement of the earthquake coverage:

Cal Ins Code § 10081 states that no policy of residential property insurance may be issued or delivered or, with respect to policies initially renewed in this state by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of earthquake. That coverage may be provided in the policy of residential property insurance itself, either by specific policy provision or endorsement, or in a separate policy or certificate of insurance which specifically provides coverage for loss or damage caused by the peril of earthquake alone or in combination with other perils.