The earthquake deductible buyback program enables a property owner to lower the deductible on a residential earthquake policy.
The deductible can be lowered by up to 10% resulting in a final deductible as low as 5%.
The program is available for residences in California.
To be eligible for the earthquake deductible buyback program:
- The residence must be a single family residence, duplex, triplex, or four-plex located in California.
- In force overlying earthquake policy is required.
- The overlying earthquake deductible must be 10% or greater.
Additional Program Capabilities
The earthquake deductible buyback program is designed to be a useful and efficient resource to offer across your client base. All California residences are eligible. In addition, there are:
- No age restrictions.
- Flexible coverage terms. The buyback policy can be written for a term up to 12 months so the buyback expiration date coincides with the overlying policy expiration date. The premium for any term other than 12 months will be calculated on a pro-rata basis, subject to minimum premium.
The program is structured to cover a single location per policy. Clients with multiple locations may obtain multiple policies.
Available Buyback Options
The available buyback options are determined based on the overlying earthquake deductible.
|Overlying Earthquake Deductible||
Deductible Buyback Options
(by how much you can reduce your overlying deductible)
How the Deductible Buyback Works
The Buyback policy fits between the existing policy and the deductible.
|Existing Policy||The overlying (existing policy) pays when the damage exceeds the sum of Your Deductible and Buyback Policy.|
|Buyback Policy||The buyback policy pays when the damage exceeds Your Retained Deductible|
|Your Retained Deductible||The amount you retain before your buyback policy pays.|