Final answer:
Among the provided options, statement 3, 'the earthquake deductible is often 10 to 15 percent higher than for other types of property coverage,' does not demonstrate the favorability of earthquake policy deductibles but rather their potentially higher cost.
Step-by-step explanation:
The student's question regarding earthquake policy deductibles has a main answer that is related to insurance coverage for earthquake damages. Among the provided statements, the one which does not explain why earthquake policy deductibles are more favorable is that 'the earthquake deductible is often 10 to 15 percent higher than for other types of property coverage'. This statement actually indicates that earthquake deductibles might be less favorable due to their higher percentages compared to standard property deductibles. Earthquake insurance policies are specialized forms of property insurance designed to provide coverage for damages resulting from seismic activities, with specific conditions for deductibles and payouts.In this context, the first statement is favorable because once the dwelling deductible is met, personal property coverage kicks in without requiring an additional deductible. The second statement highlights the exclusive nature of earthquake coverage which is a favorable aspect for those insured, as only this policy covers earthquake damages. The fourth statement implies a favorable condition where no deductible must be paid if the claim significantly exceeds the deductible amount, which is not a common feature in other property insurance policies.In summary, deductibles for earthquake insurance may have favorable conditions compared to general property insurance, with the exception of their higher percentage.