Gold Mountain Insurance, Inc.

FAQ : Home
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Questions: • What are standard coverages that come with a Homeowner's Policy? • • What is the difference between an "all risks" policy and a "named perils" policy? • Where and when is my personal property covered? • What is the difference between "actual cash value" and "replacement cost"? • Who Do I call for a Home Insurance Claim? • Do I need earthquake coverage? How can I get it? • Does the market value of my home matter for replacement cost value purposes? • What should I consider when buying homeowners insurance? • What is Guaranteed Replacement Cost Coverage? • What other protections does my policy provide? • What about my computers in the home and away? • Should I buy a Homeowners Insurance Policy? • If I have an accident I think is covered under my homeowners policy, what should I do? • What is Mold, Bacteria Dry or Wet Rot Coverage? • What types of damage does a basic Homeowner's Policy cover? • What are the LIMITS in the standard homeowners policy? • How long does an insurance company have to resolve my claim? • What Does the Workers Comp Rider Cover on my Home Policy? • How much does my home cost to rebuild ? • Do I have certain possessions ” computer equipment, cameras, jewelry ” whose replacement values far surpass normal coverage limits in my policy? • What can I do to lower the cost of my homeowners insurance? • When should I purchase the California Fair Plan ?

What are standard coverages that come with a Homeowner's Policy? A: A Dwelling - The Home Structure B Other Structures - Any detached garage, cabana, shed, fences, pool, hot tub/Jacuzzi etc. that are permanently detached and away from the Dwelling. C Personal Property - The contents of the home including clothes, food, furniture, computers, electronic equipment etc. D Loss of Use - In the event of a claim the inability to live in the home while it is being repaired or rebuilt. Any additional living expenses above and beyond what you normally spend are covered such as food, clothing, hotels, etc. E Personal Liability - Covered claims that arise from your negligence that you are legally obligated to pay including legal defense and legal counsel. F Medical Expenses - Payments to Others while on your premises that are injured. This amount can be used if the guest has their own individual or group medical plan or health plan that has a deductible to satisfy.
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What is the difference between an "all risks" policy and a "named perils" policy? A: A named perils policy covers losses that are due to only those perils listed in the policy. Those typically include fire, windstorm, hail, and other physical losses. An all risks policy covers losses that are due to any peril except those specifically excluded in the policy. An all risks policy provides broader protection than a named perils policy.
Where and when is my personal property covered? A: Coverage C, the named perils coverage, applies to all your personal property (except property specifically excluded) anywhere in the world. For example, suppose that while traveling, you purchased a dresser and you wanted to ship it home. Your homeowners policy would provide coverage while the dresser is in transit - even though the dresser has never been in your home before.
What is the difference between "actual cash value" and "replacement cost"? A: Covered losses under a homeowners policy can be paid on either an actual cash value basis or on a replacement cost basis. When "actual cash value" is used, the policyowner is entitled to the depreciated value of the damaged property â€“ so the older the item is, the less money you may receive for it. Under the "replacement cost" coverage, the policyowner is reimbursed the amount it costs to replace the property with something of a similar type and quality at current prices.
Who Do I call for a Home Insurance Claim? A: CSE (800)282-6848 Nationwide (800)282-1446 Allied (800)282-1446 Metauto & Home (800)255-0332 Western Mutual (800)927-2142 American Modern (800)375-2075 Pacific specialty(800)962-1172
Do I need earthquake coverage? How can I get it? A: Direct damages due to earthquakes are not covered under standard homeowners insurance policies. In California, a part of the country with high earthquake activity, you may want to consider researching with Gold Mountain's licensed agents, a separate earthquake insurance endorsement to your homeowners insurance policy. This could cover damages due to earthquakes, landslides, volcanic eruptions and other earth movements.
Does the market value of my home matter for replacement cost value purposes? A: Excellent question, and often misunderstood. Market value, inclusive of the land underneath, and surrounding your real property, is a fluid number depending upon the economy, interest rates, along with other variables, including; supply/demand factors, psychology or sentiment, and has nothing to do with the replacement cost value(RCV) of your home. RCV, on the other hand, is the amount of dollars in today's marketplace, factoring for many variables that were mentioned in this FAQ Home section, "How much does my home cost to rebuild," has no relationship to "market value." A tip for savvy buyers in the home market, however, is to buy a home when RCV is HIGHER than market value(including land), or market value(including land) is LOWER than RCV. During historical real estate bust cycles, these types of opportunities do present themselves.
What should I consider when buying homeowners insurance? A: First and foremost, buy the amount and type of insurance you need. Remember: if your policy limit is less than 80% of the replacement cost of your home, you will face a "coinsurance penalty," which means youâ€™ll have out-of-pocket expenses to cover costs beyond your policyâ€™s deductible. For example: Your home's estimated replacement value (RCV) is $100,000. The co-insurance clause requires you carry at least $80,000 (80% of your RCV), so you would be underinsured by half if you bought a $40,000 policy. In such a scenario, the company would pay half of a loss less the policy deductible - so if you had a $500 deductible and suffered a $10,000 covered loss, your policy would only pay $4,500. Also, figure out how much personal property insurance and personal liability coverage you need. Personal property, like a home, should be insured for its replacement value. Personal liability is a bit more subjective, but limits should not be less than those on other liability insurance such as auto. Seek advice from a financial or legal professional if in doubt. Finally, think about the extras you could add to your policy. For example, do you want the personal property replacement cost endorsement or the earthquake endorsement? Finally, once you have decided on the coverage you want, you can decide which insurer you would like to purchase the insurance from. In this regard, a Gold Mountain insurance agent will be very helpful in making those decisions during the selection process.
What is Guaranteed Replacement Cost Coverage? A: Guaranteed replacement cost coverage on a home or building is offered by some companies. The major advantage is that it provides guaranteed replacement when you don't know how much it will cost to rebuild. In the event of a covered catastrophe, guaranteed replacement cost coverage can cover you even if you were underinsured. This coverage is based on a Boeckh rebuilding evaluation of your house. As long as you agree to insure your house for the amount recommended by the Boeckh Evaluation, you will receive whatever it costs to rebuild the house in the event of total loss up to a stated amount. Some policies may cover the cost of using different materials or designs to bring the structure into compliance with current building codes. Others require that you purchase additional bylaws coverage. As for the contents of your house, try to determine what it would cost to replace everything in your home, including clothing and accessories, at today's values. Because the basic homeowners policy may set limits on certain property, you may need additional coverage for valuables such as: •Jewellery •Furs •Silver •Musical instruments •Collectibles Of course, you must always inform your Gold Mountain agent of new additions, home improvements or larger personal property acquisitions. Although some companies offer inflation protection, it may not be enough after a loss. The jury is still out as of Sept., 2005, but Hurricane Katrina may become the PROOF for this underinsurance PHENOMENON. As a matter of fact, this same disaster may even test the VALIDITY of the "stated amount" provision provided for in a "Guaranteed Replacement Cost" coverage policy.
What other protections does my policy provide? A: Homeowners policies regularly provide other types of coverage, including off-premises theft protection and unauthorized use of your credit cards. Make sure you understand which provisions are included in the standard coverage you elect to purchase and which may require supplemental premiums.
What about my computers in the home and away? A: If you have a homeowners policy, your personal computer would be covered, in the home, against all of the basic disasters listed in the policy. So, if your computer is stolen or destroyed in a fire, you would be covered. Some companies, however, have dollar limits for electronic equipment. This means your computer; printer and related items would be covered only for the amount (usually $5,000) listed in your policy. If you need additional coverage, you can usually raise the dollar amount by paying a little more premium. In addition, you may purchase a separate "floater" for your portable computer. This policy would cover your portable computer for its full value anywhere in the world on an all-risk basis.
Should I buy a Homeowners Insurance Policy? A: Indeed. For most Americans, their home is the largest most valuable asset that they have, while disaster can strike anytime, and anywhere, so that one wouldn't want to be without home insurance when it might matter most. In addition, if you do not own your home mortgage free, the lender, bank, or mortgage company will almost always require it to be purchased. In this regard, they have a financial interest in your home too. The property protection portion of a homeowners policy is considered Section I of two main sections. Homeowners insurance will also safeguard you with personal liability protection, an important point when measured against rising litigation costs. Homeowners insurance can help insulate you from the burdensome defense costs, and legal judgements which may be upheld against you, or your family members inside or outside of court. In addition, legal counsel coverage is also provided in this Section II policy part. In summary, homeowners insurance is basically designed to bring your home and possessions back to the same condition they were in before a loss occurred, while adding an important liability component to protect you from personal claims as well.
If I have an accident I think is covered under my homeowners policy, what should I do? A: Insurance contracts are conditional contracts, which means policyowners have certain responsibilities to meet if a covered loss occurs. Policyholders who do not follow certain procedures at the time of a potential loss, can result in non-payment by the insurance company for losses that otherwise would have been covered. These procedures include: (1) notifying the insurance company or your Gold Mountain agent that a loss has occurred -- this should be done as soon as you discover the loss; (2) protecting the property from further damage and/or making any repairs necessary to prevent further damage; (3) preparing a detailed list of the personal items damaged that contains descriptions, the itemsâ€™ actual cash value, or their replacement cost if you have added the replacement cost endorsement to your policy; (4) being prepared to show the company and/or the insurance agent the damaged items, as well as receipts; (5) completing a statement for the insurance company that explains how the loss occurred -- for example, the time the damage occurred, the cause, etc.
What is Mold, Bacteria Dry or Wet Rot Coverage? A: Mold, Fungi ,Wet or Dry Rot or Bacteria has become a epidemic and causing millions of dollars of damages every year in Homes , Condos, Townhomes and most single or multiple family residences . Damages include mold spores inhalation and property damage to contain, remove and rebuild what building property damages it caused. The older your property is, the higher risk of this water moisture is present that you may not be aware of. Anytime there is undetected water or moisture within a home from slow leaks in pipes, appliance or between walls and floors, there is a probability the mold bacteria will grow in dark places there is air for it to survive, grow and infect every porous sheet rock and dry wall within your home. This so called “black mold” is the type of fungi that is dangerous and must be detected and treated so its spores do not mushroom and become airborne. Please be aware most all insurance policies covering you for Hazard or Property Insurance will EXCLUDE this Mold coverage because of its recent popularity concern and high cost to detect, contain, remove , perform post air quality tests and rebuilding of the building structure and walls, so insurance companies do not want to pay for damages covering or relating to it. At Gold Mountain Insurance Services, we utilize most insurance carriers, some exclude this important Coverage , other carriers add it back into the policy as an Endorsement to cover the Mold but at a $ 5,000.00 maximum benefit for Property Damage and $ 50,000 relating to Liability Damage it causes. Some carriers we represent, even allow Mold, Fungi,Wet or Dry Rot, Or Bacteria coverage to be increased to $ 50,000 maximum damage to building property and $ 100,000 maximum relating to liability it causes. This cost may be an additional annual increase of $ 36.00 extra per year
What types of damage does a basic Homeowner's Policy cover? A: Most basic policies protect against damage from: Fire and lightning Windstorm and hail Explosion Riot and civil commotion Aircraft Vehicles Smoke Vandalism and malicious mischief Theft You can also step up coverage to include: Falling objects Weight of ice, snow, and sleet Damage from home utilities or appliances Electrical surge damage
What are the LIMITS in the standard homeowners policy? A: Note: this answer is based on the Insurance Services Office's HO-3 policy. Coverage A and B cover your dwelling and other structures on the premises on an "all risks" basis up to the policy limits. The Insuring company sets the limit for Coverage A when you buy the policy. The Coverage B limit is usually equal to 10% of the policy limit on Coverage A. Coverage C covers losses to your personal property on a "named perils" basis, which means you are covered for all the perils specifically named on your policy. Read your Policy , do not just file it away in the drawer The policy limit on Coverage C is equal to 50% of the policy limit on Coverage A. Coverage D covers extra expenses you may incur when the residence can not be used as a result of a covered loss. The policy limit for Coverage D is equal to 20% of the policy limit on Coverage A. The Coverage E - Personal Liability - $100,000, $300,000 $500,000 or $1,000,000 The limit on Coverage F - Medical payments to others - is usually set at $1000 per injured person but can be purchased at higher levels
How long does an insurance company have to resolve my claim? A: Once the insurer has received notification of your claim, the company must acknowledge receipt within 10 business days, unless payment is made within that period. Additionally, insurers must complete an investigation of the claim within 30 days of being notified, unless the investigation cannot reasonably be completed within that timeframe. If the insurer needs additional time to determine whether your claim should be accepted or denied, the company must notify you and provide reasons within 15 business days of receiving the proof of loss. If the investigation is not completed within 45 days after proof of loss is submitted, the insurer must tell you why, in writing, and follow-up every 30 days thereafter until the investigation is completed.
What Does the Workers Comp Rider Cover on my Home Policy? A: Please note that the workers compensation insurance rider of a homeowners insurance policy does not cover any domestic employees for workers compensation benefits nor does it cover people working for home-based businesses. For example, this rider could cover contractors that are deemed employees under the WCL and working a total of less than 40 hours a week in or around a one, two, three or four family owner occupied residence. This is total hours for the employment — for example four individuals working 10 hours per week is equal to 40 hours. Any such employment that equals or exceeds 40 hours per week is not covered by the homeowner’s insurance rider. Also note that contractors performing minor repairs or painting in or around a one family owner occupied residence are not employees under the WCL.
How much does my home cost to rebuild ? A: Replacement Cost Value(RCV) is the amount of dollars required to repair or rebuild your home with like materials and similar construction. Typically, the cost to rebuild vary across the nation depending upon many factors such as labor rates, materials cost (wood, concrete, plumbing, metal, paint, etc.), transportation costs, demolition costs, state, county and city building fees, i.e. law and ordinance coverage. There is a smart way to go about making sure you have the right replacement cost coverage. You can call one of our experienced, licensed insurance professionals toll-free at 1-800-856-8394. He or she can take you through the process to help you assess what your home will cost to rebuild. There is an industry wide formula that insurance companies utilize to determine the cost through Marshall Swift/Boeckh. It provides cost data for determining replacement costs of buildings and other improvements in all 50 states. Factors Include: Square footage of the structure Type of exterior wall construction (frame, masonry or veneer, stucco, brick, stone) Style of the house (Ranch, Colonial, Split Level, Victorian, and others) Number of bathrooms and other specialty rooms Type of roof (asphalt, clay, concrete, tile, slate, rubber, metal) Attached garages, fireplaces, exterior trim and other special features like arched windows, high cathedral ceilings, rooms with crown-molding across the perimeter of the ceilings and/or across the perimeter of the floors Custom features These factors, and others should be accounted for, and reviewed periodically, in order to determine the replacement cost value of your home.
Do I have certain possessions ” computer equipment, cameras, jewelry ” whose replacement values far surpass normal coverage limits in my policy? A: Standard policies may not come near covering the replacement costs of even moderate amounts of home electronics hardware or expensive possessions. For relatively small amounts, you can purchase "floaters" that will add protection to certain types of personal property. In addition, equipment related to a home-based business may not be satisfactorily covered unless you obtain additional protection.
What can I do to lower the cost of my homeowners insurance? A: The best thing to do is let your Gold Mountain agent shop around for you. You could find quotes on homeowners insurance that vary by hundreds of dollars for the same coverage on the same home. When you shop, make sure each insurer is offering the same coverage. Many insurers use the ISO policy forms, but this is not always the case. Another way to cut costs is to look for discounts that apply to you. For example, many insurers will offer a discount when you buy both your automobile and homeowners insurance from them. Some insurers offer discounts if you have deadbolt interior locks on all your exterior doors, or if your home has security or sprinkler systems. Ask your Gold Mountain agent about the various company by company discounts. Another easy way to save is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium, sometimes by as much as five or ten percent. However, you should be sure you have enough cash on hand to cover the larger deductible in case of emergency.
When should I purchase the California Fair Plan ? A: The FAIR Plan insures both residential and and commercial properties located in brush and wildfire areas.