What type of insurance must be offered with every residential property policy in California?

In California, it is required for insurers to offer earthquake insurance alongside residential property policies. This requirement recognizes the significant seismic risks present in the state, making it essential for homeowners and renters to have the option to protect their properties from earthquake damage. While homeowners are never obligated to purchase the earthquake coverage, insurers must present it as an option upon the issuance of a residential property policy.

Flood insurance, on the other hand, is managed differently. It is not a mandatory offer with standard homeowners insurance policies. Coverage for flood damage is typically available through separate National Flood Insurance Program policies or specialized insurance carriers, rather than being bundled with residential property insurance.

Understanding this insurance landscape is crucial for individuals in California to ensure they have adequate coverage for the unique risks associated with living in the state. Therefore, offering earthquake insurance with every residential property policy aligns with these needs and regulatory requirements.