How to talk to your customers about changes in their policy premium
Although we’ve introduced many enhancements to our policies, some condo unit owners saw an increase in CEA insurance premiums for policies effective on or after January 1, 2016. For renewal policies, deductibles that were set at a flat $750 are now rolling over to a 5% deductible, which for many condo policyholders will appear as an increased premium.
Customers who are concerned about their premiums can make them more manageable by contacting you and working through alternatives – for example, by selecting higher deductibles and making sure they are purchasing only the coverages they need.
For example, increasing the loss assessment deductible from fifteen to twenty-five percent can result in a significant premium reduction.
And, when talking to customers whose insurance premiums have increased, it’s important to remind them that these higher rates are not for higher profits. CEA is a not-for-profit, and our expenses are well below the insurance industry average. Any changes in insurance premiums must be reviewed and approved by the California Department of Insurance.
CEA uses the latest computer modelling to determine earthquake risk and ensure everything is actuarially sound. Learn more about CEA’s financial strength.
EQ IQ
Question: What was the magnitude of the October 21, 1868 Hayward earthquake?
Answer: The 1868 Hayward earthquake was estimated to be between a 6.8 and 7.0 magnitude earthquake and is considered one of the most destructive earthquakes in California’s history.
Source: USGS