Homeowners insurance up for renewal?
Now is a good time to contact your insurance agent to make sure you are getting the most from your insurance company. Look for a comprehensive policy that will do the job at an affordable price. Insurance policies are not all created equal and need to reviewed by you and your agent for maximum value.
First on our short list of things to look at on your homeowners policy should be the amount of coverage and the type of coverage you have. As a rule replacement coverage means “new for old” and in the event of a total loss the goal is to buy you a brand new home and have it installed in your existing location. Actual cash value (ACV) is subject to depreciation and other conditions at the time of loss, meaning you can’t be entirely sure of what you will get when you need it most. The problem you can run into is not having enough coverage to pay the cost of the new home and being short of 80% of that cost at the time of loss. If you are not within 80% of the actual replacement cost at the time of loss your coverage will fall to “ACV” or what used home around you are selling for and as we all know that can be a low number. Hopefully you have replacement coverage instead of actual cash value (ACV) and enough coverage to do the job. Your agent should do a “cost estimator” to be sure your coverage level is correct.
Next let’s focus on all of your “stuff”, that is to say all the things you have in your home. We again need to look at replacement vs. ACV. Without adding a replacement endorsement to your personal property all of your “stuff” is subject to depreciation. Make sure the limit for personal property is enough, make sure you have replacement, and let your agent know about any unique items you want specific coverage on. It’s a great idea to take a Sunday afternoon to catalog most of your stuff and take pictures. If your home ever burns down you will be very glad you took the time to do this.
We live in California and we’ve all heard how the big one is coming so let’s go over earthquake coverage. The first consideration is obviously price. A good agent will find you the best deal and try to combine your earthquake and homeowners insurance. After the premium shock we need to understand what the limits are and what we can expect from the company. You will find that your deductible will either be 10% or 15%. This deductible applies to your home and your personal property and is a percentage of the amount of coverage. Standard earthquake coverage will also reduce your personal property and loss of use to $5,000 and $1,500 respectively.
The list of optional endorsements and coverage’s is long and I can’t possibly address them all this time. Each company builds their homeowners policy slightly different and can requiring changes by your agent to make them worth their salt. A good insurance term to remember is “HO-3” which essentially means a comprehensive form.
The important thing is to have an agent that knows mobile homes and that will go the extra mile to stretch your hard earned dollars while not compromising the coverage you may depend on should that rainy day happen. Call your agent and remember we are here to look out for you and to guide you to quality coverage at an affordable price.
http://camobilehomeinsurance.com
Scott Wilson
Weibel Insurance Agency Inc.
