Every
year around the same time I get a terrific little bill for Homeowners insurance
in the mail. With one eye open I
take a peak at the premium for this coming year. Shortly after that it’s time to locate the amount of
coverage on my home. I’m willing
to bet my reaction is the same as yours ... “The value of my home has gone down
and the insurance company wants more money” and boy am I excited to write them
another check!
Now
is a good time to contact your insurance agent to get the in-n-out on your mobile
home policy. 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 lic#oc53493
Weibel
Insurance Agency Inc.
1(800)
653-5565
Answer: Yes, the proximate cause of the total loss would be fire, You would be covered for this loss even though you did not have earthquake coverage.