Earthquake insurance is not mandatory in Canada, nor is coverage for earthquakes typically included in a standard home insurance policy. However, some insurance companies require it for certain areas of the country where the risk of an earthquake causing significant damage is particularly high. When added to a home policy, the annual premium will rise by between \(30 \%\) and \(50 \%\) depending on where a person lives, and the deductible will be higher than for other perils. It generally covers loss or damage to a policyholder's home and belongings caused by the actual shaking of the earth as well as living expenses while a home is being repaired. What would be the implications if an insurance company ignored any important factor in setting the premium it charges? In the case of earthquake insurance, suppose the omitted factor is the relative stability of the soil under a house. Would such an omission be a moral hazard?