Which policies trigger the offer? Under §10087, residential property insurance covers individually owned structures of not more than four dwelling units, condominium units, mobilehomes, and tenants' contents.
Examples:
A tenant insuring the contents of a rented apartment: entitled to the offer.
The individual owner of a condominium unit: entitled.
The individual owner of a four-unit building rented to residential tenants: entitled, because renting a building of four units or fewer for residential purposes does not take it out.
The owner of a 12-unit apartment building: not entitled, because it is over the four-unit line.
§10089 sets the minimum earthquake offer. It must include:
Coverage on the dwelling, apart from the items the statute leaves out.
Contents coverage of at least 10% of the covered dwelling loss or at least $5,000; the insurer elects which option it uses.
At least $1,500 of additional living expense coverage. This can be waived in writing for a dwelling that is not owner occupied.
The minimum dwelling coverage expressly leaves out swimming pools, landscaping and several other items. That gap is a key reason earthquake coverage is narrower than a homeowners policy.