Why Earthquake Insurance Matters
Earthquakes Can Happen Anywhere
Earthquakes are a matter of when, not if. They can happen almost anywhere at any time. A minor quake might damage furnishings and personal belongings, but a big quake could cause catastrophic damage to a home’s structure. Purchasing earthquake insurance means having financial resiliency and peace of mind in the face of any quake.
Grow Your Portfolio
For agents as well as consumers, earthquake insurance is an important piece of your portfolio. Growing your book of business can be as easy as touching base with existing clients who carry other lines of coverage and starting a conversation about their protection gaps.
Protect Your Clients
The strongest predictor of a consumer having earthquake insurance was using an agent to make insurance decisions. Homeowners who used an insurance agent to make insurance decisions were nearly three times more likely to have earthquake insurance than those who did not. For agents, your clients rely on you to inform and educate them about the protection they need.
Two of the most common Errors and Omissions (E&O) claims filed against insurance agencies include failing to offer proper coverage and providing inadequate amounts of coverage. Even if your client is not required to buy earthquake coverage, it’s helpful to proactively provide a quote for their consideration.
How to Propose Earthquake Insurance to Potential Clients
Get to Know Your Clients
Identifying new clients can be challenging but remember that earthquakes can happen anywhere, anytime. There are potential clients in your area and community who need earthquake coverage today and educating them about the need for earthquake insurance can be a valuable way to build a new relationship.
Along with identifying new clients, look for opportunities to cross-sell. Do you have clients who currently carry other insurance coverages, but do not yet have earthquake insurance?
To help keep earthquake insurance top of mind, ask your clients the following questions:
- Can they afford to repair their home without financial assistance from an insurance policy?
- Can they afford to replace their personal belongings without insurance?
- Could they cover the full costs of living elsewhere during the time repairs are being made? Given the concentrated nature of earthquakes, a damaging event may cause a severe shortage in the availability of both labor and materials. As a result, those who are displaced from their homes may end up spending significantly more time in temporary housing than they would otherwise expect.
Asking these types of questions helps highlight your clients’ potential risks and coverage gaps.
One driver of earthquake insurance uptake is strong educational programs and communication. You can help encourage financial resilience for your clients and communities by emphasizing the fact that over the past century, earthquakes have caused damage in all 50 states. Using information and tools like recent earthquake events and fault line maps can help you move the conversation forward.
Each individual has specific needs. With Palomar’s affordable and flexible policies, you can help customers choose the coverage that best fits their budget.