Sponsored Post by GeoVera
The Importance of Earthquake Insurance
With home values skyrocketing since 2020, owning a home has become a critical way to build wealth and secure retirement plans. However, many California homeowners overlook a key aspect of protecting their equity: earthquake insurance. Everyone hopes they won’t need the policy but will be relieved they have one if the need arises, making it possible for them to return to their homes and sustain their lifestyle during the rebuilding process. Make sure to discuss with your clients their potential vulnerability from this coverage gap.
The Earthquake Risk
The Northridge earthquake of 1994 struck the densely populated San Fernando Valley in southern California, U.S., on January 17, 1994. The third major earthquake to occur in the state in 23 years (after the 1971 San Fernando Valley and 1989 San Francisco–Oakland earthquakes), the Northridge earthquake was the state’s most destructive one since the San Francisco earthquake of 1906 and the costliest one in U.S. history.
In the July 2024 article, “California is 150 Years Overdue for a Massive Earthquake” in The Atlantic, the author notes that the San Andreas Fault, which formed 30 million years ago and runs beneath Southern California, is long overdue for a major quake, typically occurring every 150 to 200 years. Ross Andersen states, “In 1989, an earthquake hit the Bay Area, immersing the state in seismic catastrophe imagery. A freeway overpass snapped, San Francisco’s Victorians toppled, a fire broke out in the Marina, and the World Series was halted. “The big one” is supposed to be worse,” he says.
Quality Coverage with GeoVera
By positioning earthquake insurance as a crucial part of financial security, you establish yourself as an expert, guiding clients toward better protection. For insurance agents, writing more stand-alone earthquake represents a solid stream of revenue as well as the long-lasting benefit of a 94% retention rate on average.
GeoVera’s benefits include:
- Ease of Use: GeoVera’s user-friendly earthquake insurance quoting platform, which takes seconds to quote, makes cross-selling seamless for agents. Investopedia even named GeoVera the “Best Online Experience for Earthquake Insurance for 2023.”
- Quality Coverage: GeoVera’s policies protect homeowners from the financial impact of seismic events, while providing peace of mind.
- A.M. Best “A” Rating: GeoVera’s strong financial stability and commitment to clients are reflected in their “A” rating from A.M. Best, an independent evaluation that signals GeoVera’s readiness to support policyholders in times of need.
When choosing a policy, GeoVera offers both Flexible Limit and Single Limit options that can be tailored to cover various earthquake-related risks, including damage to the home, other structures, personal belongings, and temporary living expenses. Understanding the role of deductibles is crucial in making an informed decision. In the case of a large-scale event, the advantage of the Single Limit is that it allows you to take care of those immediate needs (loss of use). This is because its single deductible can be applied to the larger losses attributed to the home, while you use the payout balance for lodging, food, and the basics of daily living away from your home.
Partnering with GeoVera helps grow your business and ensures your clients have essential protection. Together, we can navigate the seismic risks ahead and protect the future of your clients and your business.
Download our PDF reference guide to learn more about GeoVera and how to effectively cross-sell earthquake coverage.
