Excerpt from Why Platinum?
More than 85% of Californian homeowners and renters do not have earthquake insurance coverage. When the "Big One" hits, entire neighborhoods will be left damaged for long periods of time.
One reason people don't buy Earthquake Insurance is do to a "Great Misconception" that is reinforced by media and various financial writers who should know better. When pointed out, corrections are usually put on the last page of the newspaper.
Have you ever heard this statement or thought this to yourself?
"The deductible is so high, why would I buy it? I can't afford to pay that much!"
Not true. The deductible does not have to be paid out-of- pocket before the policy begins paying. It's just the amount of damage that must be exceeded before the policy begins paying.
Isn't 85% coverage better than the 0% most people have in place right now?
Let's start at the beginning. A lot of the major insurers, including Farmers, use the CEA; the California Earthquake Authority since they were unsure about individually underwriting such a large potential loss on their own. In example: $12.5 Billion in damages from the 1994 earthquake alone.
"The California Earthquake Authority is a publicly managed, largely privately funded organization that provides catastrophic residential earthquake insurance and encourages Californians to reduce their risk of earthquake loss."
The CEA plan is a high deductible plan designed to get you back into your home safely. It's not designed to cover extras like artwork and swimming pools. By making it a high deductible plan, it's affordable enough to hopefully get more insureds under the plan.
Example: A homeowner buys a CEA policy with dwelling coverage of $350,000. They choose the 10% deductible plan.
A home suffers $250,000 in damage to the dwelling with $17,000 of personal property damage.
$250,000
minus $35,000 Deductible
__________
= $215,000
plus $17,000 for personal property
__________
= $232,000
The homeowner does not have to pay the $35,000 out of pocket to get the check for $232,000 the way many incorrectly assume.
Wouldn't $232,000 for this severe loss be better than $0.
Step two: apply for a 15 year SBA loan for $35,000 (when you meet with FEMA) to cover the rest, if you even want it.
The alternative: Hope it doesn't happen, but if it does take out a $262,000 SBA loan that has to be paid back in 15 years.
Could you handle that large of a 2nd / 3rd mortgage that needs to be paid back in 15 years or less, along with your other debts?
That's what most Californians will face if now's the time.
Don't just wonder about your specifics, meet with a Farmers Insurance agent like one of the ones below who all make up the Platinum Elite Group.
Susanne Romo - (lic. #: 0720743) - (858) 751-0956
Araceli De La Torre - (lic. #: 0G17321) - (858) 751-0956
Tony Gutierrez - (lic. #: 0A87116) - (858) 751-0956
Kevin Tuckey - (lic. #: 0B72553) - (858) 751-13573675 Ruffin Rd.
ste 220
San Diego, Ca 92123
Farmers Insurance & The Platinum Elite use an investigative and educational process to ascertain your current risk exposure and deliver to you through our 'Value Insurance Proposal' (VIP) the correct levels of coverage at the right price without compromising vital coverages. You need to protect your family and the assets you have spent a lifetime acquiring.
With Farmers Insurance & The Platinum Elite, there is a difference. Discover:
Why Platinum!
* The content of this blog is for informative purposes only. It does not reflect official standing of any agent, agency, or company mentioned on the blog. Nor is this blog necessarilly an endorsement. Please consult with your insurance, tax, or legal specialist before making any decisions. This blog is purely meant to spark the thought process.
