The California Earthquake Authority (CEA) this year has significantly enhanced its policy offerings, making earthquake insurance more affordable and more flexible than ever before. That means your California clients are running out of excuses to protect themselves against serious financial losses from a damaging earthquakes.
The policy changes went into effect for new and renewal policies on or after January 1, 2016.
Compelling Policy Enhancements
One of the most compelling changes for the New Year are lower rates. Your clients are eligible to take advantage of a 10 percent average statewide rate reduction. With the latest statewide rate reduction, CEA has lowered rates over time by nearly 55 percent.
CEA policies now offer more coverage choices, more deductible options and more affordable rates:
- New deductible options – ranging from 5 to 25 percent
- Doubled Personal Property coverage available – up to $200,000
- Quadrupled Loss of Use coverage (additional living expenses) – up to $100,000
- Increased mitigation discount for eligible homeowners – up to 20 percent of premium
Explains Glenn Pomeroy, CEO of the CEA, “Many Californians have mixed feelings about earthquake insurance – scientists tell them there’s earthquake risk, but they are concerned that coverage may be too expensive or come with a deductible that’s too high.
“Now is the time to take another look, because with lower rates and more options, Californians can choose a policy to meet their needs and budget – it is no longer a ‘one size fits all’ proposition,” he adds.
The Need for Protection is Urgent
Coverage for earthquake damage is a critical part of your clients’ insurance portfolios. Research by the U.S. Geological Survey indicates the likelihood in California of a 6.7-magnitude or greater quake is more than 99 percent within the next 30 years.
That means it is a near certainty that there will be an earthquake on the same scale as the 1994 Northridge earthquake—which inflicted some $40 billion in damages to Southern California.
Will your clients be ready? Be sure to let them know about the exciting policy options detailed below.
About the Author:
This article was provided by CEA. CEA is a publicly managed, privately funded, not-for-profit organization that writes more than 75 percent of the residential-insurance policies in California. CEA works to encourage all Californians to take steps to reduce their risk of earthquake loss. Formed in the wake of the 1994 Northridge Earthquake, the CEA began operations in December 1996.