Am I overapayng for homeowners insurance

User Forum Topic
Submitted by suraj on November 13, 2012 - 4:48pm

Hello there,

I have a quick question regarding homeowners insurance.
I live in a condominium comunity of 4S Ranch called San Moritz. For the past 6 years, I have been paying homeowners insurance through USAA.
My coverage through USAA is copied below.
I also have some kind of coverage for the walls in through my Homeowner Association's policy and I have attached the policy coverage as a PDF.

I recently refinanced my mortgage.
Both my mortgage planner and the escrow officer noticed that I might be overpaying or paying for overlapping policies and suggested that if my master HOA covers my interior I may want to take that into consideration in regards to my other H06 policy with USAA.
I called both USAA and my HOA insurance (LaBarre/Oksnee Ins. Agency) but I can't get a straight answer as to whether or not the two policies are overlapping.
What LaBarre said is:
"The HOA provides coverage for the unit interiors and exclusive use common areas as they were originally conveyed by the developer. Any upgrades or improvements made to the units are the responsibility of the unit owner. Homeowner(s) involved in a claim are also responsible for the master policy deductible of $10k deductible"

Does anyone know if there's any item I can remove under my USAA coverage?
-----------------------------------------------------

USAA Coverage:

POLICY PERIOD From: 05/23/12 To: 05/23/13
COVERAGES AND LIMITS OF LIABILITY

SECTION I
A. Dwelling $118,600
C. Personal Property $30,000
D. Loss o f Use (UP TO 12 MONTHS) $12,000
SECTION II
E. Personal Liability - $300,000
Each Occurrence
F. Medical Payments to Others - $5,000
Each Person

Your premium has already been reduced by the following:
FIRE/BURGLARY CREDIT $9.17 CR
BASIC PREMIUM: $300.94

OTHER COVERAGES: $202.84
IN FORCE QR6GAR (02-05) QUICK REFERENCE-UNIT-OWNERS
IN FORCE HO-6R (04-93) UNIT-OWNERS FORM
IN FORCE ESA-CA (12-07) SPOUSE ACCESS ENDORSEMENT
IN FORCE HO-CA (01-11) CALIFORNIA SPECIAL PROVISIONS
IN FORCE HO-FLDA (01-07) HOME FLOOD AMENDATORY ENDR
IN FORCE HO-IDF (07-01) IDENTITY AND FINANCIAL FRAUD COVERAGE
IN FORCE HO-MLD (07-01) AMENDMENT TO CONTRACT PROVISIONS
IN FORCE 438BFU NS (05-42) LENDER'S LOSS PAYABLE ENDORSEMENT
IN FORCE HO-18 (04-93) ADJUSTED CONTENTS ENDORSEMENT
IN FORCE HO-19 (07-00) ADJUSTED BUILDING COST ENDORSEMENT
IN FORCE HO-41 (10-96) ADDITIONAL INSURED
IN FORCE HO-90CA (04-93) CALIFORNIA WORKERS COMPENSATION
IN FORCE HO-216 (04-93) FIRE/BURGLARY PROTECTION CREDIT
IN FORCE HO-32 (04-93) UNIT-OWNERS SPECIAL COVERAGE A $188.51
IN FORCE HO-728 (06-97) REPLACEMENT COST COVERAGE $14.33

DEDUCTIBLES
We cover only that part o f the loss over the deductible stated.
ALL PERILS $250
DEDUCTIBLE PREM $11.46

TOTAL POLICY PREMIUM: $515.24

-----------------------------------------------------
San Moritz HOA (LaBarre/Oksnee Insurance SD):

Property policy has 100% Replacement Cost and includes interior of units -
excludes betterments and improvements. Total of 140 units.

See attached PDF.

AttachmentSize
San Moritz Cert.pdf63.79 KB

Submitted by Blogstar on November 13, 2012 - 8:33pm.

I don't know if you are paying too much, but I would up the personal liability to a million and perhaps increase your medical coverage.

With the 10k deductible on the HOA policy, it would be nice to have a lower deductible in force over the interior of your property, I would think. Maybe the USAA policy give that. To me 10K is too much of a risk....depending on how much it costs you of course. I like around $2,500, knowing that I do my own work and that I would be out about $1,250 + my time.

Submitted by flu on November 13, 2012 - 10:10pm.

...Or you can get an umbrella for both home and auto.

If it helps, for reference my condo insurance is about $250...

Submitted by spdrun on November 13, 2012 - 10:13pm.

$10k deductible - what's wrong with it? There's probably less than a 1/100 chance of $10k damage in any given year. If you're paying more than $100/yr, do the maths...

Submitted by flu on November 13, 2012 - 10:17pm.

spdrun wrote:
$10k deductible - what's wrong with it? There's probably less than a 1/100 chance of $10k damage in any given year. If you're paying more than $100/yr, do the maths...

I think Blogstar's point is that more than likely the general condo's insurance is already insuring the inside of the structure...That principally leaves personal belongings left...Most people don't have $10k worth of stuff. Meaning with a 10k deductible, you end up having to pay most everything out of pocket IF something were to happen. And the insurance policy won't pay that much.

Submitted by spdrun on November 13, 2012 - 10:24pm.

Question is if the structure is already insured, is an additional policy required by the lender?

Or can you go "extreme southern auto-insurance style" and drop the insurance, keeping the HOA's coverage as your sole policy? If you get robbed or whatever, just eat the cost of the home's contents.

Submitted by flu on November 13, 2012 - 10:24pm.

suraj,

There's got to be a more detailed document describing your general condo's insurance. Ask for it from agent of the Hoa itself. It's listed on the document you attached....(You should have been provided a copy at escrow time when you bought the place.)

"Property policy has 100% Replacement Cost and includes interior of units -
excludes betterments and improvements. Total of 140 units."

So if you remodeled or made changes/additions etc, those things wont be covered.

Submitted by flu on November 13, 2012 - 10:27pm.

spdrun wrote:
Question is if the structure is already insured, is an additional policy required by the lender?

Or can you go "extreme southern auto-insurance style" and drop the insurance, keeping the HOA's coverage as your sole policy? If you get robbed or whatever, just eat the cost of the home's contents.

No. But this also covers personal liability me thinks. So said person wants something for liability as well.

Submitted by Blogstar on November 14, 2012 - 8:19am.

spdrun wrote:
$10k deductible - what's wrong with it? There's probably less than a 1/100 chance of $10k damage in any given year. If you're paying more than $100/yr, do the maths...

I was just trying to get the thread some action before it fell off. I knew someone would have something better to say if I posted first.

In the OP's case, where does it show that the the policy is reduced by $100 for a 10k deductible?
I do think my deductible is actually around $6k for my primary residence. Perhaps my agent told me why that was a sweet spot for his particular underwriting standards...

Submitted by no_such_reality on November 14, 2012 - 9:00am.

For $500 dollar, do you want to deal with your insurance guy or deal with the HOA?

Submitted by spdrun on November 14, 2012 - 9:06am.

Assuming anything "from the paint outward" is controlled by the HOA, you'd have to deal with them anyway.

Submitted by suraj on November 14, 2012 - 12:33pm.

Thanks for all the replies. I definitely want to keep some kind of coverage with my insurance. If I ever have a leak and it destroys the flooring, I would be able to use the insurance. Yes $10K deductible with the HOA policy is ridiculous.
I just think I am paying too much for my homeowners insurance (over $500 per year).

Submitted by fsbo on November 14, 2012 - 10:32pm.

$10000 deductibe for HOA is very normal, otherwise as business insurance, there would always be someone trying to take advantage of low deductible, make many small claims, which would bump up the HOA insurance premium eventually.

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