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It Won't Happen to Me

When It Comes To Earthquakes, It Pays To Be A Realistic Optimist

There’s a saying in the insurance industry that goes something like this…

“Think optimistically, plan realistically.”

Unfortunately, when it comes to earthquake insurance, there are a lot of unrealistic optimists out there. Optimists are gambling with the possibility that the next damaging earthquake won’t affect them. But as you know, with any insurance product, “it” always happens to someone, sometime, no matter how much of an optimist they are.

When “it” happens, the optimist is forced to face reality. And without the coverage of a CEA earthquake insurance policy, the reality can be more than most people can handle. After the 2014 Napa earthquake, the CEA conducted an online survey of residents of the city of Napa. Of the 633 who responded, it was discovered that:

  • 91% experienced some kind of damage at their house that led to potential safety hazards
  • 37% said the total cost of the event for their household was over $5,000, including 13% who had costs over $25,000
  • Fewer than 10% of Napa-area residents had earthquake insurance

That’s why now is a good time to contact your customers who have declined earthquake insurance in the past to offer a gentle dose of reality. To perhaps remind them of what they stand to lose in an earthquake and how – without an earthquake insurance policy – the losses will be paid for entirely out-of-pocket.

Ask your customers: if their home were damaged by an earthquake, would they have the money to recover?

  • Could they afford to pay for upgrades so their home is up to building code standards?
  • Can they pay out of pocket to replace personal property that was broken or destroyed?
  • If their house is uninhabitable, do they have money set aside to live elsewhere until repairs are made?
  • And if their home was damaged or destroyed, could they come up with the money to rebuild?

Help your customers see the value of financially covering their home in the event of an earthquake before it’s too late. Because it’s so much better to become a realist before a disaster, than after.