Who really manages the CEA's money? It's a state conglomerate that was put together to comply with the Department of Interior's rule to provide earthquake coverage for current homeowners’ policies
Walnut Creek, CA (PRWEB) February 24, 2012
The Bay Area’s home insurance company, EQ Insurance Service of Walnut Creek provides the top three reasons why homeowners should explore options for earthquake insurance in lieu of accepting the limited scope of protection provided by the California Earthquake Authority’s policy.
"This policy is not covered by the California Insurance Guaranty Association (CIGA). Therefore, the CIGA will not pay your claims or protect your assets if the CEA becomes insolvent and is unable to make payments as promised. In addition, your CEA policy may be subject to future surcharges of the policy premium in certain cases where an earthquake or a series of earthquakes has exceeded available resources to pay claims," according to the CEA Disclosure.
Each time a person purchases a home, state laws requires new homeowners to purchase a home insurance policy; however, earthquake insurance is optional. EQ Insurance would like to take this moment to explain the top three reasons why homeowners should explore all earthquake insurance options:
1) State law requires any new homeowner insurance policyholder be offered earthquake insurance within 60 days of purchase; however, many insurance agents propose the CEA policies that their parent company offers without fully understanding the policies and other available options.
2) The CEA is not backed by the California Insurance Guaranty Association, meaning if it run out of money and is unable to make payments, the CIGA will not provide financial support and the CEA may reassess current policyholders.
3) There are other earthquake insurance policies and companies that are backed by guarantee funds and not part of the State of California. Many plans offer more options and better premiums.
EQ Insurance Service knows that most home buyers are content to purchase home insurance for their properties but often neglect to obtain proper earthquake insurance, which can become a crucial mistake, especially for California residents. EQ advises homeowners to explore available, guaranteed insurance options, before accepting a CEA policy.
“Who really manages the CEA's money? It's a state conglomerate that was put together to comply with the Department of Interior's rule to provide earthquake coverage for current homeowners’ policies,” said Myron Carlson, owner of EQ Insurance Service. “Last time anyone checked, the State of California is in a budget crisis, and if an earthquake devastates a region, where is the money going to come from? The Federal Government will come and bail it out, right? But please remember how the government handled Hurricane Katrina. Do not rely on government loans and grants for your assets, home or business.”
EQ Insurance Service offers homeowners the chance to protect their assets and investments before it is too late.
For more information about any of EQ Insurance Service’s policies, call 866-945-8800, view the earthquake insurance company on the web at http://www.eqinsuranceonline.com or visit 1399 Ygnacio Valley Road, Suite 2, in Walnut Creek.
About EQ Insurance Service
Aside from earthquake and home insurance, EQ Insurance Service also offers commercial insurance and earthquake protection for commercial establishments. It provides expert knowledge for property owners throughout the Bay Area and all surrounding locales of Northern California.