One of the biggest misconceptions regarding California Earthquake coverage is the widely held view that it is a straightforward and elective coverage. With the lowest frequency in the CAT space, this peril is the least tested and, as a result, often misunderstood. While frequency is minimal, one large event with subsequent aftershocks would have brokers and insureds taking a closer look at what is truly being offered.
The amount of capacity, alternative capital, and the number of carriers and MGAs continues to grow. This increased number of choices creates competition and flexibility in coverage. However, this competition also makes it easy to place coverage without fully understanding what is provided.
Below are the top 10 misconceptions about placing CA Earthquake coverage.
About the Author
This article was written by Greg DeFuria, property broker with AmWINS Brokerage in Woodland Hills, CA.
Legal Disclaimer. Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
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