With the crazy weather these days you really never know what you are going to need.

With the SO Cal fires going on right now I figured I could give a crash course on insuring to value.

Here is a unfortunately and way to common example:

  • 4000 sq ft home purchased in 1999 in Malibu for $2,000,000
  • Home replacement cost was estimated at $1,000,000 or $250 sq ft 
  • You home is involved in the recent fires
  • You never reviewed/increased your coverage
  • Your policy had inflation guard built into it at the industry average of 4%
  • Your home burns to the ground and your insurance will pay out $1,315,932 or $328 sq ft

Problem: Cost of construction in Malibu is in the $400sq ft + range.

Items that are built into your policy that can help:

  • Extended replacement cost: This will help to pay above and beyond your policy limit. Any where from 10% to 100% of your dwelling amount.
  • Building code upgrade: This will pay for items such as interior sprinklers, double pane windows whatever the items that are now required that your home may not have had. Coverage amount 0-100% of your dwelling amount.
  • Loss of Use: This will pay to put you up in a "like kind" location. Depending on the company this coverage would be as low as 20% of the dwelling to "Unlimited"

Moral of the story: Review, Review, Review. In most cases there are things you can do to your policy to increase coverage and keep the premium the same.

Ask your agent to show you some options like: Higher deductibles, consolidated policies and make sure you are getting all the discounts possible.

 

 
Posted by Adrianne Peixotto on 10/22/2007 04:48 PM   Comments (2)  
Generate short URL

Insurance and your escrow close…
10/16/2007
share
Hi ActiveRain friends, I am writing to see if anyone has a good, bad or ugly story they can share with me regarding Insurance and your escrow closings. I know this maybe an odd way to start out my "blog career" but I figure if I ask the… more
 

Adrianne Peixotto

San Rafael, CA

More about me…

Costello & Sons

Office Phone: (415) 257-2131

Cell Phone: (415) 250-2222

Email Me



Links

Archives

RSS 2.0 Feed for this blog