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The recent earthquake in Napa Valley, California, brought with it the revelation that only about 6 percent of homeowners in the affected area have insurance plans that would cover their damages for such an incident. It has since set off something of a debate about the efficacy of this type of coverage, and whether it's ""worth it"" for homeowners. Insurance agents should note that while each person's financial and coverage needs are unique, highlighting the reasons that this kind of additional plan might be a good idea for consumers to look into might go a long way toward adding to their security if such an incident occurs.

The problem with this kind of insurance coverage, from a consumer's point of view, is often that it comes with an appreciable price tag - usually hundreds of dollars or more per year - for something they might not think is particularly likely to happen to them. Many may already feel that they're paying more than they should for standard coverage, so the idea of adding onto that could seem onerous.

So what can be done?
There's also plenty of anecdotal evidence, however, to suggest that there's a disconnect between what people think they need and what they actually need. For instance, when it comes to flood damage, many consumers often find that any kind of water buildup will not be covered on their standard insurance policies, but sometimes aren't aware of that fact until after they've suffered such an incident. For this reason, it may be incumbent upon consumers and insurance agents alike to better deal with the realities of such a situation.

While many consumers might balk at the extra cost of an add-on insurance coverage like this, it's important to note that many also might think they're covered for anything once they buy a standard policy. As such, insurance agents may need to do more to educate their clients about the risks that may be most prevalent in their areas, and what they can do to make sure their properties are as protected as they need them to be. That could go a long way toward building a strong relationship with the client, and boost customer satisfaction ratings overall. Further, the ability to find reasonable discounts to potentially offset the added cost could, likewise, be quite valuable in keeping consumers happy.

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