Going back to the language then, the exception is for Coverage D and additional coverages; the endorsement is stating that the earthquake deductible does not apply to these coverages. This makes sense because coverage D is loss of use, and additional coverages are debris removal, trees, etc. and these coverages aren't really affected any more by an earthquake than any other cause of loss.

For example, the dwelling is worth $500,000 and the earthquake deductible is 2%. For damage to the house itself, the amount of loss must be over $10,000 since that is the earthquake deductible. Because of the earthquake, the insured has to live in an apartment for a month; the additional living costs are $1,000 a month. These additional living costs are paid and the deductible does not apply; the coverage under Coverage D is such that it would never be paid out if the earthquake deductible applied; it's important, but relatively small coverage comparatively.

It works the same way for the additional coverages; trees are covered up to $500 for any one tree, and up to 5% of the limit of liability is available total for all trees, plants, and shrubs. Taking earthquake deductibles on these smaller coverages would overly penalize the insured for a loss.