Which of the following is NOT true about earthquake coverage?

The statement that coverage is commonly provided through a federally-funded program is not true. In most scenarios, earthquake insurance is not part of standard property insurance policies and is typically offered as a separate policy or as an endorsement. While there may be federal programs that provide assistance after a disaster, earthquake coverage itself is not commonly provided through such programs. Instead, it is usually obtained from private insurers.

On the other hand, the other statements correctly reflect the nature of earthquake coverage. For example, it can indeed be written in a Difference of Conditions policy, which is designed to fill gaps in coverage. Additionally, it is true that earthquake coverage is commonly excluded by many standard property policies, with separate endorsements sometimes available for those wanting to add this coverage to their existing policies. This separation is crucial, as the unique risks and potential damages associated with earthquakes necessitate specially tailored insurance products. Understanding this can help property owners better protect themselves against seismic risks.