Residential Earthquake

The Abacus Residential Earthquake program is a unique solution that enables a homeowner to select from a variety of deductible approaches all from a single insurance company. Clients can select the deductible basis as either a percentage of the dwelling limit, a percentage of each coverage or a percentage of the total insurable value. The available deductible options are 10% and 15%.

In addition, the program allows customized limits for appurtenant structures, personal property and loss of use. Coverage for hardscape is also available.

The program is distributed online through the Abacus broker network with real time quoting, issuance and servicing. The program is admitted in California.

Program Highlights

Size	Residences with dwelling limits up to 3,000,000
Deductible Approaches	% of Coverage, % of Dwelling, % of Total Insurable Value
Deductibles	10% or 15%
Coverage Term	12 months

Deductible Options

The deductible approaches are available for all deductible options.

Deductible Approach	15% Deductible	10% Deductible
% of Dwelling The deductible is applied against the dwelling limit. When the dwelling deductible is met, all coverages would then satisfy the deductible.
% of Coverage The deductible is applied separately to each coverage. The deductible for each coverage is independent of the other coverages.
% of Total Insurable Value The deductible is applied against the Total Insurable Value (TIV). When the TIV deductible is met, all coverages would then satisfy the deductible.

Coverage Options

The Abacus Residential Earthquake Program provides flexibility to amend the coverage limits.

Coverage	Base Limit	Options
Dwelling	Up to 3,000,000	None
Appurtenant Structures	10% of Dwelling	0% to 20% of Dwelling
Personal Property	50% of Dwelling	25% to 75% of Dwelling
Loss of Use	20% of Dwelling (up to 25,000)	20% of Dwelling (up to 500,000)
Limited Building Code Upgrade	10,000	None
Hardscape	Excluded	Up to 100,000

Coverage Enhancement Endorsement

The base earthquake policy includes loss of use up to 25,000 and no hardscape coverage. The Coverage Enhancement Endorsement increases loss of use up to 500,000 (subject to a maximum 20% of the dwelling limit) and includes hardscape coverage up to 100,000 (subject to maximum 20% of the dwelling limit). In addition, the Coverage Enhancement Endorsement provides limited coverage for various additional items included jewelry, computers, glassware, musical instruments and more.

Options available:

• Coverage Enhancement with Loss of Use up to 100,000 and Hardscape up to 50,000
• Coverage Enhancement with Loss of Use up to 250,000 and Hardscape up to 50,000
• Coverage Enhancement with Loss of Use up to 250,000 and Hardscape up to 100,000
• Coverage Enhancement with Loss of Use up to 500,000 and Hardscape up to 50,000
• Coverage Enhancement with Loss of Use up to 500,000 and Hardscape up to 100,000

Coverage Example

This example is based on a client with 1,000,000 dwelling replacement cost. The Coverage Enhancement Endorsement is included which provides loss of use up to 100,000 and hardscape coverage of 50,000 (which is a sublimit of appurtenant structures). The client has a choice of three deductible approaches. Although the example displays a 15% deductible, a 10% deductible option is also available.

Deductible Approach		% of Coverage	% of Dwelling	% of TIV
Coverage	Limit	15% Deductible	15% Deductible	15% Deductible
Dwelling	1,000,000	150,000	150,000	Included
Appurtenant Structures	100,000	15,000	Included	Included
Personal Property	500,000	75,000	Included	Included
Loss of Use	100,000	15,000	Included	Included
Limited Building Code Upgrade	10,000	1,500	Included	Included
Total Insurable Value (TIV)	1,710,000	N/A	N/A	256,500

Eligibility Requirements

To be eligible for the Abacus Residential Earthquake Program:

1. In force homeowners policy is required.
2. The Dwelling cannot be built on stilts.
3. Dwelling cannot be on an historical register.
4. Frame construction. Dwelling cannot be made of unreinforced or reinforced masonry.
5. Dwelling must be on flat ground or a slope less than 26 degrees (a minimum of 50 feet clearance is required from a slope of over 26 degrees).
6. The dwelling must be a minimum of 500 feet from the beach (high tide line).
7. Single Family residence.
8. No prior unrepaired earthquake damage.
9. Residences built prior to 1972 must be bolted to the foundation.
10. Proof of retrofitting required if built prior to 1955.