Registered Insurance Brokers of Ontario (RIBO) Practice Exam

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True or False: Earthquake damage is insurable under a standard property insurance policy.

True

False

True only if additional coverage is purchased

False as it requires a separate policy

Earthquake damage is typically not covered under a standard property insurance policy. Standard policies usually include perils such as fire, theft, and vandalism but specifically exclude coverage for earthquakes. As a result, for a property to be insured against earthquake damage, policyholders generally need to purchase additional coverage or a separate earthquake insurance policy.

While there may be some insurance providers who offer a service where earthquake coverage can be included in a standard policy in certain specific circumstances, this is not standard practice. Therefore, asserting that earthquake damage is covered under a standard property insurance policy is incorrect. The understanding that earthquake damage requires additional coverage or a separate policy aligns with the principles of property insurance and is essential for policyholders to ensure they are adequately protected against such risks.

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