Earthquake insurance: coverage.

Existing law requires that an earthquake insurer offer specified minimum coverage for loss or damage caused by an earthquake that includes, but is not limited to, contents coverage either in an amount not less than 10% of the amount of the covered dwelling loss, or in an amount not less than $5,000, provided that if the underlying policy of residential property insurance does not cover structural loss, the amount of contents coverage after deductible is not less than $5,000. Existing law authorizes the Insurance Commissioner to approve rate applications that allow the insurer to offer policies providing coverage other than the coverage described above provided that at least one coverage offered meets the criteria of the coverage described above. This bill would specify that the earthquake insurance policies providing alternative coverage that may be offered may include coverage options not meeting the minimum coverage described above.