What it does
IH 99 17 adds earthquake to the exclusions of the IH-series policy. Direct loss from resulting fire, explosion or theft remains covered if those causes are otherwise covered. The exclusion does not apply to property in transit.
Who needs it
Carriers attach it in earthquake-prone areas or on accounts with concentrated values at fixed sites. Most IH forms are open perils, so without this endorsement earthquake is generally covered.
Quoting and selling notes
Point out the exclusion on proposals for California, the Pacific Northwest, the New Madrid region and other seismic areas. If the insured needs earthquake coverage for equipment stored in a yard or warehouse, ask for its removal or a sublimit. The transit carve-back preserves coverage for property moving between sites.
