Question

What is the coverage limit offered by the California Earthquake Authority for condominiums?

1. There is no limit.
2. The coverage is equal to the fair market value.
3. The coverage is limited to $25,000 if the value is $135,000 or less, and $50,000 if the value is over $135,000.
4. The total limit for coverage is $500,000; the same as any other type of residential property protected by the California Earthquake Authority.

Answer 1

The California Earthquake Authority offers a coverage limit of $500,000 for condominiums. This coverage includes structural damage, personal property losses, and additional living expenses if the residence becomes uninhabitable.The correct option is 4.

Step-by-step explanation:

The coverage limit offered by the California Earthquake Authority for condominiums is option 4: The total limit for coverage is $500,000; the same as any other type of residential property protected by the California Earthquake Authority.

This means that regardless of the fair market value of the condominium, the coverage limit is capped at $500,000. This coverage applies to damages caused by earthquakes, including structural damage to the condominium, personal property losses, and additional living expenses if the residence becomes uninhabitable due to earthquake damage.

It is important to note that earthquake insurance is not automatically included in standard homeowners or renters insurance policies, so individuals interested in earthquake coverage should consider contacting the California Earthquake Authority or an insurance agent for more information.