Commercial Earthquake Policy Feature Checklist
What to confirm in a commercial earthquake policy — what's standard, what's often limited, and what to add if needed — plus the gap most often missed.
Pull out your current earthquake policy and check the box next to each feature you can confirm it includes — anything unchecked is worth a quick conversation with your advisor.
Tick each feature you can confirm your policy includes — anything left unticked is a good question for your next policy review.
| Confirm? | Policy feature | What to confirm | Priority |
|---|---|---|---|
| Building and Contents Limits | Confirm limits match current rebuilding cost, not the purchase price or an old appraisal. | Standard | |
| Deductible Basis | Earthquake deductibles are usually a percentage of each building's value, often 2% to 5% or more — know the dollar amount. | Standard | |
| Fire Following Earthquake | Usually covered by the property policy — confirm neither policy excludes it. | Standard | |
| Business Income and Extra Expense | Often left off earthquake policies; rebuilding after a major quake can take a year or more. | Often limited | |
| Ordinance or Law | Pays to bring a damaged building up to current seismic code — older buildings face the biggest upgrades. | Often limited | |
| Earthquake Sprinkler Leakage | Covers water damage from sprinkler pipes broken in the quake; can be bought on its own. | Often limited | |
| Aftershock Window | Confirm how many hours of shaking count as one event and one deductible. | Often limited | |
| Landslide and Liquefaction | Some forms exclude earth movement other than the quake itself. | If needed | |
| Tenant Improvements | Tenants should confirm improvements they paid for are covered under their own policy. | If needed |
The gap most often missed in this coverage
The most commonly missed gap in this coverage is the deductible. Earthquake deductibles are usually a percentage of each building's insured value rather than a flat dollar amount, so a 5% deductible on a $4 million building is $200,000 before the policy pays. Owners often learn this only after a loss. Ask for quotes at more than one deductible level and confirm whether it applies per building or per occurrence.
Send us the checklist and we'll review your commercial earthquake coverage line by line, then market it across multiple carriers that compete for your account.
Related: Earthquake Insurance · Commercial Earthquake Supplemental (apply) · All coverage checklists
Frequently asked questions
What should a commercial earthquake policy include?
Standard features to confirm in a commercial earthquake policy include Building and Contents Limits, Deductible Basis, Fire Following Earthquake. This checklist also flags the features that are often limited or sublimited and the ones to add if needed, with a plain-English note on each.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my commercial earthquake coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.