Key Takeaways from Our Latest Podcast with Jerry Garcia
GeoVera had the pleasure of collaborating with the “Insurance After Dark” podcast for a recent episode. Jerry Garcia, Senior Sales Leader for GeoVera, discussed an often overlooked but crucial aspect of homeownership on the West Coast—earthquake insurance. A little about Jerry: he was born and raised in California and has been in the industry for 30 years. He’s been with GeoVera for seven years and works to educate agents about the importance of earthquake insurance.
If you’re a homeowner in California, Oregon, or Washington, this is a conversation you shouldn’t miss. Here’s a quick rundown of what was covered.
The Importance of Selling Earthquake Insurance
Jerry started the discussion by emphasizing how vital earthquake insurance is for homeowners in earthquake-prone areas like California, Oregon, and Washington. Many people don’t realize the coverage gaps in their current policies, which could leave them vulnerable to a significant financial loss after a major earthquake.
Jerry stressed that earthquake insurance isn’t just an add-on; it’s an essential part of a well-rounded insurance portfolio. “Regarding coverage, you probably have your home and your auto… you’re still missing that last gap, earthquake insurance. So, in this case, it’s important to cover that gap because once we get hit with that big earthquake, these other policies (homeowners) will not cover you.”
A Closer Look at Earthquake Insurance
The conversation then dove into the nitty-gritty of earthquake insurance policies. Jerry broke down the two main types of policies available: the Flex Limit and the combined Single Limit. Understanding how deductibles work in these policies is critical to making an informed decision. In the case of a large-scale event, the advantage of the Single Limit is that it allows you to take care of those immediate needs (loss of use). This is because its single deductible can be applied to the more significant losses attributed to the home while you use the payout balance for lodging, food, and daily living away from your home.
Jerry clarified how these deductibles are applied, ensuring homeowners know what to expect regarding coverage. “Things to consider are that the policy is mainly there to ensure you can provide a living situation for your family as much like a home as possible. It’s there to cover your equity and your losses. Your home, which, technically, is almost everybody’s biggest investment… [most people put] a majority of their eggs in that one basket. And you want to ensure you have coverage to return to where you were before the catastrophe.”
How Earthquakes Influence Sales and Marketing Strategies
The discussion took an interesting turn as they spoke on the impact of earthquakes on insurance sales and marketing strategies for agents. Sales often spike following an earthquake, mainly driven by fear. Jerry shared insights into why educating clients about the risks and coverage options is so important and how a proactive marketing approach can make all the difference in those critical moments.
“We’re averaging anywhere from 4,000 to 5,000 earthquakes a year. And there are almost 16,000 faults in California alone,” says Garcia.
Changes in the California Earthquake Authority (CEA) and Their Implications
Jerry also discussed the recent changes within the California Earthquake Authority (CEA) and their implications for agents and homeowners. Managing many policies takes work, and the CEA has had to adapt to ensure its ability to pay future claims. These changes present new challenges and opportunities in protecting the state’s large home market, especially for standalone companies like GeoVera.
Leveraging Technology to Streamline the Purchasing Process
Lastly, the episode explored the quoting process for agents looking to sell earthquake insurance. Jerry highlighted how technology has made the process smoother and more efficient. Agents can quickly quote and bind policies with a user-friendly platform, offering flexible coverage options that meet their clients’ needs on the spot.
“Personally, I’d rather have face-to-face meetings and training in conjunction with agents, but I’ve had to adapt, obviously, through Zoom, Webex, and Teams. Sometimes, we’ll do both types of training with agents. We’ll have 15 or 20 agents in an office and bring in another 20 virtually to get everybody on board. But I’ll work with agents in any way to train them and get them up to speed on how to sell earthquake insurance.”
This podcast episode is a must-listen. Whether you’re an agent looking to expand your offerings or a homeowner seeking peace of mind, understanding earthquake insurance is key to protecting your investments.
From “Insurance After Dark: Special Guest: Jerry Garcia Talks Earthquake Insurance,” Jun 13, 2024.
Listen to the “Insurance After Dark” podcast.
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