During agent training sessions, the deductible discussion tends to be the area where agents experience an “ah-ha!” moment because they truly didn’t understand how deductibles worked. Being able to accurately explain CEA deductibles to policyholders enables agents to sell more CEA policies.
Your Guide to CEA Deductibles
Did you know that CEA’s deductible never has to be paid out-of-pocket by your insured before getting a claim payment?
Here are the most commonly misunderstood aspects about deductibles:
It is highly unlikely that a minor earthquake will result in damage greater than the deductible.
Experts agree that even a minor earthquake can result in significant damage, depending on things like location, depth of the quake and a structure's resistance to seismic damage. And remember, without a separate earthquake policy, policyholders will pay 100 percent of recovery costs themselves.
The deductible is so high that nothing will be paid if there is an earthquake.
Some coverages, such as the first $1,500 of emergency repairs on a CEA homeowners policy, and loss of use, are never subject to a deductible. And with the Homeowners Choice policy, thanks to the separate deductible option, personal property payment can be more likely after a moderate quake that doesn't damage the dwelling. And now, with new deductible options ranging from 5 to 25 percent, you can choose the deductible that best meets your needs and budget.
I have to pay the deductible out of pocket before any repairs can be made to my house.
CEA policy deductibles are the amount that is "deducted" from an insured loss, so your clients do not have to pay the deductible out of pocket in order to receive a claim payment from CEA.
Want to learn more about our earthquake policies?
Register for CEA Training.