Is flood and earthquake insurance required for Dryer Vent Squad franchisees, and under what condition?

[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

Insurance Requirements

• a) Coverage against direct physical loss or damage to real and personal property, including improvements and betterments, written on a special form peril basis, including flood and earthquake, if the relevant property is situated in a flood or earthquake zone, in an amount equal to 100% of the Franchised Businesses property value;
• b) Comprehensive general liability insurance, written on an occurrence basis, extended to include contractual liability, products and completed operations, and personal and advertising injury, with a combined bodily injury and property damage limit of at least $1,000,000 per occurrence and $2,000,000 in the aggregate;
• c) Statutory workers' compensation insurance as required by the law of the state in which the Franchised Business is located, with a limit of at least $1,000,000;
• d) Employer's liability insurance as required by the law of the state in which the Franchised Business is located, with a limit for bodily injury by accident of at least $500,000 and a limit for bodily injury by disease of at least $500,000, and an aggregate limit of at least $1,000,000;
• e) Business automobile insurance, including liability insurance coverage for hired and non-owned automobiles, with a combined single bodily injury and property damage limit of at least $1,000,000 per occurrence;
• f) Business interruption insurance equal to 12 months of your net income and continuing expenses, including Royalty Fees;
• g) Commercial umbrella liability insurance with a total liability limit of at least $2,500,000;
• h) Cyber Insurance in the amount of at least $1,000,000 protecting against first party and third party claims;
• i) Employment practices liability insurance with a limit of at least $1,000,000 including actions of a third party and a minimum limit of $100,000 for wage and hour disputes; and
• j) All other insurance that we require in the Manuals or that is required by law or by the lease or sublease for the Franchised Business.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)