Earthquake Deductible Buyback

Program Highlights

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 12.5% resulting in a final deductible as low as 2.5%.

Deductibles can be lowered by up to 2,250,000 in total reduction.

The program is available for residences in California.

Eligibility Requirements

To be eligible for the earthquake deductible buyback program:

1. The residence must be a single family residence, duplex, triplex, or four-plex located in California.
2. In force overlying earthquake policy is required.
3. The overlying earthquake deductible must be 12.5% 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:

1. No age restrictions.
2. 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)
	2.5%	5%	7.5%	10%	12.5%
5%
10%
12.5%
15%
17.5%
20%
25%

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.