A quake of 5.0 magnitude or greater is destined to shake the Los Angeles region sometime within the next two and a half years, experts from NASA’s Jet Propulsion Laboratory (JPL) in Pasadena announced last week.
Even after the 2014 La Habra quake,”there’s enough energy stored to produce about a magnitude 6.1 to 6.3 earthquake,” JPL geophysicist Dr. Andrea Donnellan told CBS Los Angeles. The team originally began studying the La Habra quake, but soon expanded their research to measure the probability of a similar quake for the 60-mile radius of the entire LA area. Using radar and GPS to measure the likelihood of an earthquake, they are predicting that an M5 earthquake will hit before the end of first quarter 2018.
Related: Riding Out the Next Big Earthquake
Yet only 17 percent of California residents have earthquake coverage, reported the LA Times in a story last Friday, “Rethinking Your Stance on Earthquake Coverage.” The article noted common reasons for not having earthquake insurance – and why they may not be such a good idea, and we’ve repeated them here. These are key insights to share with your homeowner clients as you work with them.
#1 Excuse to Not Buy EQ Insurance: My home survived the (fill-in-the-blank) earthquake with minimal damage, so I’m fine.
Earthquakes are as diverse as snowflakes: no two are the same. Your home may have been untouched in previous quakes, but earthquake energy and motion travels through the ground on unique paths each time, and new fault lines are being discovered constantly. If the quake occurs along a different fault line next time, your home could sustain serious damage.
#2 Excuse: I’ll rebuilt with cheap FEMA funds
Yes, homeowners may qualify for the low-cost loans – but they’re NOT free money. Loans have to be repaid, and they count against one’s credit until they are repaid.
#3 Excuse: I’ll just walk away
That’s an option as well – but homeowners will lose all their equity and put their hard-earned credit rating at risk.
Producers, we recommend that you familiarize yourself with these three reasons homeowners believe they do not need to cover their home and contents plus additional ones, along with the answers provided by the LA Times. You may even want to print out the articlefor use with potential clients.
Additionally, FEMA has provided an emergency supply checklist that you can share with your clients, either by printing and handing them the list or by providing the electronic link.
Simplified Quake Coverage
Arrowhead’s Residential Earthquake program is simple and streamlined. Get an online quote for your client in under three minutes. With just minimal information regarding the dwelling or condo, we can provide a comprehensive earthquake insurance quote. Don’t have a username or password for Arrowhead Exchange? Contact our Tech Support Department at 800.333.5553 x6844 or email us.