How is coverage for earthquake typically treated in standard property forms?

In standard property insurance forms, coverage for earthquake damage is typically excluded unless specifically endorsed. This means that most foundational property insurance policies do not automatically provide coverage for losses that occur as a result of an earthquake. For a policyholder to have earthquake coverage, they usually need to add an endorsement or purchase a separate earthquake policy. This characteristic is particularly significant for homeowners and businesses in areas prone to seismic activity, who may need to proactively address this potential risk.

While some policies might include certain types of natural disaster coverage, earthquakes generally require this additional step, reflecting the unpredictability and potential severity of earthquake-related damage. Therefore, understanding that standard property forms treat earthquake coverage as an exclusion unless endorsed is crucial for policyholders when assessing their insurance needs.