Skip to content
  • 1 (800) 324-6020
Get a Quote
Quake Insurance by GeoVera
  • 1 (800) 324-6020
  • Products
    • California
    • Washington
    • Oregon
  • Blog
  • About Us
  • Contact Us
  • Products
    • California
    • Washington
    • Oregon
  • Blog
  • About Us
  • Contact Us
< Back to blogs

5 Reasons Why Getting Disaster Insurance is a Challenging Choice

Earthquake Insurance | Get Prepared
Get Insured: Why it is a challenging choice?

Why is Deciding to Get Disaster Insurance so Challenging?

Humans make thousands of daily decisions, ranging from simple choices like what to wear or eat, to more complex decisions like buying a house or starting a business. With the increasing complexity of our world, decision-making has become more complicated than ever. 

When buying insurance, many people think they don’t need to be insured against certain risks because they don’t believe an event could happen to them, one hasn’t occurred recently, or they don’t see the value in paying for something they may never use. However, the real risk from Mother Nature should be acknowledged, and that going without insurance can be a costly mistake. Several psychological factors may influence people into not buying insurance even when they know rationally that risks do exist.

Five Reasons Getting Disaster Insurance can be a Challenging Decision:

(1) Optimism Bias

People often believe they are less likely to experience negative events than others. This optimism bias can lead people to underestimate the risks and believe they do not need insurance because “bad things don’t happen to me”.

As explained by Dr. Daniel Kahneman, psychologist and Nobel Laureate in Economics, “Optimism bias is a natural tendency of the human mind to overestimate the likelihood of positive outcomes and underestimate the likelihood of negative outcomes. While it can be a useful cognitive mechanism in some contexts, it can also lead to unrealistic expectations and poor decision-making.”  

(2) Availability Heuristic

People tend to base their decisions on information that is easily accessible and readily available in their minds. Suppose someone has never experienced a certain type of event or doesn’t know anyone who has experienced it. In that case, they may be less likely to consider it a real risk and, therefore, less likely to purchase insurance to protect against it.

(3) Present Bias

People prioritize immediate and long-term benefits differently. Insurance is often seen as a long-term investment without immediate benefits. This present bias can make people more likely to prioritize other shorter-term needs over the long-term financial security that insurance may provide.

(4) Fear of Loss

People often have an emotional aversion to losing something they already have. Insurance premiums represent a financial loss because people pay for something they may never use. This fear of loss can make people more hesitant to purchase insurance because they may feel like they’re giving up money now for something they may never need.

(5) Complex Decision-Making

Buying insurance involves complex decision-making, such as assessing risks, weighing costs and benefits, and choosing the right coverage optionsOpens a new window. People may need help with this decision-making process, which can make them avoid purchasing insurance altogether.
It’s important to recognize these psychological factors and take steps to overcome them when making decisions about insurance. By acknowledging that bad things can happen to anyone, researching and understanding the risks, and focusing on the long-term benefits of insurance, people can make more informed decisions that protect their financial well-being.   Don’t be swayed into omitting necessary insurance from your financial planning. If your property is at risk for earthquake, it’s time to get a quote online from QuakeInsurance.

Share this

Have you protected your home with earthquake insurance?
Get a Quote

Recent Blogs

Loading...
California park with homes in the background.

What is the Best Deductible for Earthquake Insurance?

California Life | Earthquake Insurance
Behind every effective earthquake insurance policy lies a critical choice: the deductible. This seemingly small...
Read More
California coastline with homes

Is Earthquake Insurance Worth It in California?

Earthquake Insurance
Earthquakes are a reality for Californians. Living in a state crisscrossed by fault lines means...
Read More
7.0-eq-humboldt,ca

7.0 Magnitude Earthquake Strikes Humboldt County, CA

Earthquake History | Earthquake Insurance | Get Prepared | News
Humboldt County homeowners are rattled after a magnitude-7.0 earthquake.On Thursday, Humboldt, California, experienced a magnitude-7.0...
Read More
View All
AM Best
Rated “A” (Excellent) by A.M. Best Company

As the only A rated company to offer stand-alone earthquake insurance online direct to homeowners, QuakeInsurance by GeoVera is known for providing remarkable digital experiences in the insurance industry.

Quakeinsurance by GeoVera
Facebook-f Linkedin-in Instagram

Contact Us

4605 Business Center Drive
Suite 300
Fairfield, CA 94534

1 (800) 324-6020
GeoVera Advantage

CA License: 0I01644
OR License: 100171126
WA License: 800438

Explore

  • California
  • Washington
  • Oregon
  • About Us
  • Blog
Geovera

Sign up for our mailing list

© Copyright 2025. All Rights Reserved.  |  Privacy Policy    |   Legal Notices

Get a Quote
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies. However you may visit Cookie Settings to provide a controlled consent.
Cookie settingsACCEPTREJECT
Manage consent
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Save & Accept