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Sales Tip! Overcoming Objections

CEA trains thousands of agents annually, and we are regularly asked, “can you help me overcome objections to selling CEA earthquake insurance?” Earthquake insurance can be difficult to sell because there are many misconceptions about earthquakes and earthquake insurance. Here are some common objections potential policyholders often ask agents when discussing earthquake insurance:

The government will bail me out

Government assistance is not always available. If an earthquake is declared a federal disaster and assistance is offered, you first must qualify. Grants are limited to urgent health and safety needs. Government loans to rebuild may be available, but they may not be enough to rebuild your house and, like your mortgage, still must be repaid.

My house has survived previous earthquakes

No two earthquakes are alike, so a previous experience with an earthquake is not a predictor of how your home will fare in future earthquakes. Factors such as the intensity and depth of the earthquake, soil conditions, and the distance from the epicenter of the earthquake can influence how much damage an earthquake can cause.

Earthquake insurance is too expensive

Since CEA started writing earthquake policies in 1996, construction costs have gone up by about 170%. During that same time, CEA has lowered its rates by a combined 55%. CEA offers flexible policy choices, including deductibles ranging from as low as 5% up to 25%, so your policyholders can choose a premium that fits their specific budget needs.

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