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CarlsbadMtnBiker
ParticipantRaybyrnes … I agree with you 100%. Thanks for providing balance to this.
Bubbleguy, you are clueless here and stirring the pot with much too much pessimism as usual. Your link provided insight to the worst side of the insurance industry that any major industry has on the record, if you spend the time to research in order to provide a biased report. By and large, as the CA DOI Commissioner Steve Poizner stated himself, only 10-15% of the carriers have negative trends in their claims practices worthy of his office looking into.
A least a part of the problem in 2003 (Cedar Fire in San Diego) rested on the dramatic increase in construction costs and the consumer for not questioning coverage levels for fear of having to pay additional premium.
On your comments regarding underwriting, the actual score driven database is C.L.U.E.® (Comprehensive Loss Underwriting Exchange) report (yes, this is owned by choicepoint) and this remains but only one aspect of risk evaluation and not always entirely accurate. It would be difficult to find anyone that was non-renewed for a single wildfire loss event.
Additionally, carriers cannot simply raise rates without first going through a lengthy rate increase filing with the CA DOI that is scrutinized at many levels.
Participant“Are you sure it’s required by law and not by contract between the parties? If the law requires it, wouldn’t all policies have such clause?”
I believe all policies do have a similar clause. There is case law in CA on this dealing with basic ownership interest. The lenders sued to protect their interest. No time to research but feel free.
Participant“Are you sure it’s required by law and not by contract between the parties? If the law requires it, wouldn’t all policies have such clause?”
I believe all policies do have a similar clause. There is case law in CA on this dealing with basic ownership interest. The lenders sued to protect their interest. No time to research but feel free.
Participant“Are you sure it’s required by law and not by contract between the parties? If the law requires it, wouldn’t all policies have such clause?”
I believe all policies do have a similar clause. There is case law in CA on this dealing with basic ownership interest. The lenders sued to protect their interest. No time to research but feel free.
ParticipantTo my fellow San Diegans, if you have lost your home, I am very sorry for your loss. If can be rebuilt and the underinsurance problems of the 2003 Cedar fire should be much less on this one. The CA DOI made some good changes … bottom line … know your actual coverage limits and all the benefits you have coming…
File that claim to get the process started and know your actual coverage limits ……..
Most polices also provide an additional 5% above and beyond the Coverage A (building) for debris removal, 10% for building code upgrade requirements and 5% for trees, shrubs and plants. Ask your insurance company to provide all of these limits in writing with proration for inflation (if applicable.) Also request a certified copy of your policy on day 1. These requests alone will serve to convey the message that you intend to claim all benefits available to you.
For Example, a policy with $500K in Coverage A would actually have $875K after the applying the extented replacement cost coverage now triggered by FEMA. Additional to this would be another $43,750.00 for debris removal, $87,500.00 for code upgrades, and $43,750 for trees, shrubs and plants.
Finally, most policies give a straight 10% for appurtenant structures (detached garages, sheds, barns, fencing, walls, etc.) In this example, it would total $50K.
Total available coverage excluding personal property and additional living expense = $1,100,000.00
Stay safe out there !! ….
-CMB
ParticipantTo my fellow San Diegans, if you have lost your home, I am very sorry for your loss. If can be rebuilt and the underinsurance problems of the 2003 Cedar fire should be much less on this one. The CA DOI made some good changes … bottom line … know your actual coverage limits and all the benefits you have coming…
File that claim to get the process started and know your actual coverage limits ……..
Most polices also provide an additional 5% above and beyond the Coverage A (building) for debris removal, 10% for building code upgrade requirements and 5% for trees, shrubs and plants. Ask your insurance company to provide all of these limits in writing with proration for inflation (if applicable.) Also request a certified copy of your policy on day 1. These requests alone will serve to convey the message that you intend to claim all benefits available to you.
For Example, a policy with $500K in Coverage A would actually have $875K after the applying the extented replacement cost coverage now triggered by FEMA. Additional to this would be another $43,750.00 for debris removal, $87,500.00 for code upgrades, and $43,750 for trees, shrubs and plants.
Finally, most policies give a straight 10% for appurtenant structures (detached garages, sheds, barns, fencing, walls, etc.) In this example, it would total $50K.
Total available coverage excluding personal property and additional living expense = $1,100,000.00
Stay safe out there !! ….
-CMB
ParticipantTo my fellow San Diegans, if you have lost your home, I am very sorry for your loss. If can be rebuilt and the underinsurance problems of the 2003 Cedar fire should be much less on this one. The CA DOI made some good changes … bottom line … know your actual coverage limits and all the benefits you have coming…
File that claim to get the process started and know your actual coverage limits ……..
Most polices also provide an additional 5% above and beyond the Coverage A (building) for debris removal, 10% for building code upgrade requirements and 5% for trees, shrubs and plants. Ask your insurance company to provide all of these limits in writing with proration for inflation (if applicable.) Also request a certified copy of your policy on day 1. These requests alone will serve to convey the message that you intend to claim all benefits available to you.
For Example, a policy with $500K in Coverage A would actually have $875K after the applying the extented replacement cost coverage now triggered by FEMA. Additional to this would be another $43,750.00 for debris removal, $87,500.00 for code upgrades, and $43,750 for trees, shrubs and plants.
Finally, most policies give a straight 10% for appurtenant structures (detached garages, sheds, barns, fencing, walls, etc.) In this example, it would total $50K.
Total available coverage excluding personal property and additional living expense = $1,100,000.00
Stay safe out there !! ….
-CMB
Participant1. Most HO policies carry a mortgagee clause requiring them to name the lender as a loss payee on the check. This is required by law and the lender determines how it will endorse and/or disperse funds to ensure their investment is restored.
2. Many carriers offer extended replacement cost coverage by endorsement than extends Coverage A (your primary building coverage) up to 175% with a FEMA trigger for major disaster – I believe that trigger has already been pulled by President Bush. Otherwise the typical extended replacement coverage is 135% of Coverage A.
3. Additionally, by endorsement, many policies offer inflation protection which prorates all your policy limits up each month until your next renewal.
4. For a home destroyed by fire, the Actual Cash Value is determined by market value (RE Appraisal minus the value of the land) or a rebuild contractors estimate less depreciation, which ever is greater.
5. Depreciation (for all losses incl minor repairs) can only be taken on building materials subject to normal repair or replacement during the useful life of the home e.g cannot depreciate the framing, rough plumbing, etc.)
6. You can rebuild elsewhere are still be entitled to Replacement Cost Coverage.
7. Most policies offer coverage for hotel, additional expense for up to 2 weeks for a civil authority action (e.g. evacuation) many times without taking a deductible.
8. Additional Living Expense coverage has been extended on most policies to 24 months and also gives you the option of electing a Fair Rental Value Option (FRV) that allows you to take payment based on the fair rental market value of your home without the need to submit any documentation/receipts. Recommended if you are staying with family or friends vs. when you are incurring a temp rental expense or hotel.
9. Don’t hire the services of a Public Adjuster (PA) who will take 8-15% of your claim dollars doing the same thing your own assigned adjuster does for free. Give your insurance company a chance first and hire a PA when and if you have issues with your insurance company.
10. Stick with local contractors with long standing reputations for the rebuild of your home.
11. Most polices also provide an additional 5% above and beyond the Coverage A (building) for debris removal, 10% for building code upgrade requirements and 5% for trees, shrubs and plants. Ask your insurance company to provide all of these limits in writing with proration for inflation (if applicable.) Also request a certified copy of your policy on day 1. These requests alone will serve to convey the message that you intend to claim all benefits available to you.
For Example, a policy with $500K in Coverage A would actually have $875K after the applying the extented replacement cost coverage now triggered by FEMA. Additional to this would be another $43,750.00 for debris removal, $87,500.00 for code upgrades, and $43,750 for trees, shrubs and plants.
Finally, most policies give a straight 10% for appurtenant structures (detached garages, sheds, barns, fencing, walls, etc.) In this example, it would total $50K.
Total available coverage excluding personal property and additional living expense = $1,100,000.00
Stay safe out there !! ….
-CMB
Participant1. Most HO policies carry a mortgagee clause requiring them to name the lender as a loss payee on the check. This is required by law and the lender determines how it will endorse and/or disperse funds to ensure their investment is restored.
2. Many carriers offer extended replacement cost coverage by endorsement than extends Coverage A (your primary building coverage) up to 175% with a FEMA trigger for major disaster – I believe that trigger has already been pulled by President Bush. Otherwise the typical extended replacement coverage is 135% of Coverage A.
3. Additionally, by endorsement, many policies offer inflation protection which prorates all your policy limits up each month until your next renewal.
4. For a home destroyed by fire, the Actual Cash Value is determined by market value (RE Appraisal minus the value of the land) or a rebuild contractors estimate less depreciation, which ever is greater.
5. Depreciation (for all losses incl minor repairs) can only be taken on building materials subject to normal repair or replacement during the useful life of the home e.g cannot depreciate the framing, rough plumbing, etc.)
6. You can rebuild elsewhere are still be entitled to Replacement Cost Coverage.
7. Most policies offer coverage for hotel, additional expense for up to 2 weeks for a civil authority action (e.g. evacuation) many times without taking a deductible.
8. Additional Living Expense coverage has been extended on most policies to 24 months and also gives you the option of electing a Fair Rental Value Option (FRV) that allows you to take payment based on the fair rental market value of your home without the need to submit any documentation/receipts. Recommended if you are staying with family or friends vs. when you are incurring a temp rental expense or hotel.
9. Don’t hire the services of a Public Adjuster (PA) who will take 8-15% of your claim dollars doing the same thing your own assigned adjuster does for free. Give your insurance company a chance first and hire a PA when and if you have issues with your insurance company.
10. Stick with local contractors with long standing reputations for the rebuild of your home.
11. Most polices also provide an additional 5% above and beyond the Coverage A (building) for debris removal, 10% for building code upgrade requirements and 5% for trees, shrubs and plants. Ask your insurance company to provide all of these limits in writing with proration for inflation (if applicable.) Also request a certified copy of your policy on day 1. These requests alone will serve to convey the message that you intend to claim all benefits available to you.
For Example, a policy with $500K in Coverage A would actually have $875K after the applying the extented replacement cost coverage now triggered by FEMA. Additional to this would be another $43,750.00 for debris removal, $87,500.00 for code upgrades, and $43,750 for trees, shrubs and plants.
Finally, most policies give a straight 10% for appurtenant structures (detached garages, sheds, barns, fencing, walls, etc.) In this example, it would total $50K.
Total available coverage excluding personal property and additional living expense = $1,100,000.00
Stay safe out there !! ….
-CMB
Participant1. Most HO policies carry a mortgagee clause requiring them to name the lender as a loss payee on the check. This is required by law and the lender determines how it will endorse and/or disperse funds to ensure their investment is restored.
2. Many carriers offer extended replacement cost coverage by endorsement than extends Coverage A (your primary building coverage) up to 175% with a FEMA trigger for major disaster – I believe that trigger has already been pulled by President Bush. Otherwise the typical extended replacement coverage is 135% of Coverage A.
3. Additionally, by endorsement, many policies offer inflation protection which prorates all your policy limits up each month until your next renewal.
4. For a home destroyed by fire, the Actual Cash Value is determined by market value (RE Appraisal minus the value of the land) or a rebuild contractors estimate less depreciation, which ever is greater.
5. Depreciation (for all losses incl minor repairs) can only be taken on building materials subject to normal repair or replacement during the useful life of the home e.g cannot depreciate the framing, rough plumbing, etc.)
6. You can rebuild elsewhere are still be entitled to Replacement Cost Coverage.
7. Most policies offer coverage for hotel, additional expense for up to 2 weeks for a civil authority action (e.g. evacuation) many times without taking a deductible.
8. Additional Living Expense coverage has been extended on most policies to 24 months and also gives you the option of electing a Fair Rental Value Option (FRV) that allows you to take payment based on the fair rental market value of your home without the need to submit any documentation/receipts. Recommended if you are staying with family or friends vs. when you are incurring a temp rental expense or hotel.
9. Don’t hire the services of a Public Adjuster (PA) who will take 8-15% of your claim dollars doing the same thing your own assigned adjuster does for free. Give your insurance company a chance first and hire a PA when and if you have issues with your insurance company.
10. Stick with local contractors with long standing reputations for the rebuild of your home.
11. Most polices also provide an additional 5% above and beyond the Coverage A (building) for debris removal, 10% for building code upgrade requirements and 5% for trees, shrubs and plants. Ask your insurance company to provide all of these limits in writing with proration for inflation (if applicable.) Also request a certified copy of your policy on day 1. These requests alone will serve to convey the message that you intend to claim all benefits available to you.
For Example, a policy with $500K in Coverage A would actually have $875K after the applying the extented replacement cost coverage now triggered by FEMA. Additional to this would be another $43,750.00 for debris removal, $87,500.00 for code upgrades, and $43,750 for trees, shrubs and plants.
Finally, most policies give a straight 10% for appurtenant structures (detached garages, sheds, barns, fencing, walls, etc.) In this example, it would total $50K.
Total available coverage excluding personal property and additional living expense = $1,100,000.00
Stay safe out there !! ….
-CMB
Participantcow_tipping ..
to clarify further, the Actual Cash Value is determined by market value which is assessed quickly by a licensed RE appraiser minus the value of the land. The actual home/building is the “improvement” to the land. The land is simply the raw land or lot value.
Although the insurance company needs the “market comparison” approach, if they used a “cost value approach”, then the improvements would more accurately be assessed based on the cost to rebuild. However, they get the rebuild cost from a builders (Licensed General Contractor) type estimate which is as accurate as you can get as these are the guys that are going to swing the hammers.
Also remember that the insurance company will pay the greater of the appraised value (improvements only) or a rebuild contractors estimate less depreciation.
—————-
Also on a separate note,
If you have any problems with your insurance company, you can call 1-800-927-HELP or http://www.insurance.ca.gov – CA Ins. Commissioner Steve Poizner is very consumer sided and will ensure any carrier with repeated complaints gets their act together.
Participantcow_tipping ..
to clarify further, the Actual Cash Value is determined by market value which is assessed quickly by a licensed RE appraiser minus the value of the land. The actual home/building is the “improvement” to the land. The land is simply the raw land or lot value.
Although the insurance company needs the “market comparison” approach, if they used a “cost value approach”, then the improvements would more accurately be assessed based on the cost to rebuild. However, they get the rebuild cost from a builders (Licensed General Contractor) type estimate which is as accurate as you can get as these are the guys that are going to swing the hammers.
Also remember that the insurance company will pay the greater of the appraised value (improvements only) or a rebuild contractors estimate less depreciation.
—————-
Also on a separate note,
If you have any problems with your insurance company, you can call 1-800-927-HELP or http://www.insurance.ca.gov – CA Ins. Commissioner Steve Poizner is very consumer sided and will ensure any carrier with repeated complaints gets their act together.
Participantcow_tipping ..
to clarify further, the Actual Cash Value is determined by market value which is assessed quickly by a licensed RE appraiser minus the value of the land. The actual home/building is the “improvement” to the land. The land is simply the raw land or lot value.
Although the insurance company needs the “market comparison” approach, if they used a “cost value approach”, then the improvements would more accurately be assessed based on the cost to rebuild. However, they get the rebuild cost from a builders (Licensed General Contractor) type estimate which is as accurate as you can get as these are the guys that are going to swing the hammers.
Also remember that the insurance company will pay the greater of the appraised value (improvements only) or a rebuild contractors estimate less depreciation.
—————-
Also on a separate note,
If you have any problems with your insurance company, you can call 1-800-927-HELP or http://www.insurance.ca.gov – CA Ins. Commissioner Steve Poizner is very consumer sided and will ensure any carrier with repeated complaints gets their act together.
ParticipantHLS,
I really appreciate the time put into your response and words of wisdom. I do have further response and commentary on this, but unfortunately I am out the door/office until Mon. I did want to take the time to send a quick response to let you know I actually read your post and to thank you. You make some very good points, especially your final point about thinking about what could happen and be prepared. I agree there is great wisdom in that. You have made me think a little differently about all this. I may even lighten up on trying to provoke you bears all the time … (probably not) I really do hope we fair ok economically is all.
Surely, I will respond again soon HLS. Have a good weekend. I heard we may get rain.
Respectfully,
CMB
P.S. I am 35 yrs. old by the way. You nailed me on that.
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