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Home > Insurance Professionals > For Agents > Agent Resources & Sales Support > Agent Blog > 2017 > California is home to thousands of known faults

California is home to thousands of known faults

June 05, 2017

California is home to thousands of known faults, yet only about 1 in 10 Californians carry earthquake insurance on their home. That means there are billions of dollars in uninsured earthquake risk throughout the state. CEA wants to make sure you have a comprehensive set of tools to help you sell CEA policies. We are here to make selling earthquake insurance as easy as possible for you. After all, in California, the risk is real.

Why should I sell earthquake insurance?

  • Federal Assistance may not be available. Unfortunately, Californians are all clinging to the belief that when the next damaging earthquake strikes, FEMA will be there to rebuild damaged houses. But did you know that federal assistance for individual households was not available for about two months after the 2014 Napa earthquake, and the average grant was only a couple of thousands of dollars? This is where you come in to educate your policyholders about the importance of CEA and earthquake insurance. 
  • The risk is REAL. The USGS predicts that there is a 99% chance of a 6.7 magnitude earthquake within the next 30 years. Without earthquake insurance, any earthquake losses are out-of-pocket for your insureds. Do you want to be the agent who has to say, "I'm sorry I can't help you"? If you educate policyholders on the benefits of earthquake insurance, YOU get to be the one to say, "Yes, we are here for you!"
  • Increase your commission. CEA pays commission on both new business and renewals. There is no ceiling on profit. That means you are rewarded each year for helping people get covered and stay covered for earthquake damages! Since each company determines its own agent-commission structure, check and see how it will work for you.

Have you heard the news?

CEA made it even easier for you to sell earthquake insurance. Updated features include:

  • Average statewide rate reduction of 10%
  • Deductibles range from 5%-25% so your policyholder can pick what's right for them.
  • Expanded limit options for Personal Property and Loss of Use coverages
  • New, optional coverage for breakage of personal property
  • New, optional coverage for exterior masonry veneer
  • Up to 20% Hazard Reduction Discount for eligible houses that have been retrofitted to reduce earthquake damage


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