What is the deductible range for earthquake coverage under homeowner endorsements?

The deductible range for earthquake coverage under homeowner endorsements typically falls between 2% and 20%. This range reflects the insurance industry's approach to sharing the risk associated with earthquake damage. Earthquake events can vary significantly in severity and impact, so insurers often establish higher deductibles to help manage their exposure to claims.

By setting a deductible between 2% and 20%, policies allow for flexibility; it acknowledges that not every homeowner will be comfortable with the same level of financial risk. This range also serves to balance the interests of both the insured and the insurer, ensuring that the insured has a degree of financial responsibility in case of loss while still providing adequate protection for substantial earthquake-related damages.

It is important for policyholders to understand this range as they consider adding earthquake coverage, especially in areas more prone to seismic activity, as it can have a significant impact on out-of-pocket expenses in the event of a claim.