[quote=SD Squatter][quote=bearishgurl]
The county “assessment” has no bearing on what the replacement cost of a particular dwelling is or will be. Hopefully, you have a “replacement value” policy which means the insurance co will replace what was there in case of fire or other calamity, no matter how much it costs.[/quote]
“Replacement value” from the tax record (150k), or my own claimed assessment value (300k) provided by me when I applied for the insurance coverage? Who will decide “what was there”, once it’s gone up in smoke? I’m sure the insurance company can overspend me on lawyers any day…[/quote]
Your policy will tell you what your dwelling is insured for, as well as what your landscaping, outbuilding(s) and pool are insured for. Your policy and any riders will tell you if you have a “replacement value” policy. Even if you do, your dwelling and other improvements will be insured for a particular value … as a guideline.
[quote=SD Squatter][quote=bearishgurl]Earthquake coverage is separate from your homeowner’s policy. If you don’t have a separate policy through the CA Earthquake Authority, your property is not covered for earthquake damage.[/quote]Yes, I have just given it as an example. I wonder what percentage of people in SD have that coverage. It seems rather expensive given the real risk of having a catastrophic earthquake here in the next 50 years.[/quote]I think about 16% of property owners in CA have earthquake coverage and it is really not that expensive. It’s just that the typical deductible for an earthquake policy is about $50K. So, if a policyholder had a total loss (say, $375K) from an earthquake and they didn’t have $50K lying around, they would have to rebuild for $325K. If an earthquake just damages a chimney at a $26K loss, then the policyholder would receive nothing.
Ins Piggs, correct me if I’m wrong, but I believe CA earthquake coverage just mirrors the valuation a property owner’s insurance co has put on their policy and does not have a “replacement value” provision.
