Park Villas Forest Park OWNER S INSURANCE INFO KIT*

Transcription

1 Park Villas Forest Park OWNER S INSURANCE INFO KIT* For changes effective January 1, 2011 * For a simple explanation of the steps you should take by the end of December, go to page 10 entitled WHAT YOU SHOULD DO 1

2 YOUR CURRENT POLICY IS PROBABLY A HO3 POLICY IT SHOULD COVER THE FOLLOWING 1. BUILDING Rebuilds the building and everything that is permanently attached to it in case a fire burns it down 2. LIABILITY If a guest slips & falls, gets electrocuted inside your unit, etc. 3. PERSONAL PROPERTY Replaces your stuff, e.g., furniture, electronics, clothing, jewelry, etc. 4. INTERIOR BUILT-INs * Rebuilds your upgrades, e.g., hardwood floors, marble countertops, bathroom improvements, etc. 5. LOSS OF USE Pays for your lodging if you have to move out while your unit is being rebuilt 6. LOSS ASSESSMENT Pays for a special assessment * Goes by different names depending on the insurance company Building coverage is usually the most expensive part of any premium ** ** To rebuild your unit you need $250K - $300K of building coverage (1500 sq ft X $180 per sq ft = $270,000) 2

3 WHEN THE ASSOCIATION S MASTER INSURANCE POLICY BECOMES EFFECTIVE ON JANUARY 1 YOUR PERSONAL INSURANCE POLICY WILL NO LONGER NEED TO INCLUDE BUILDING COVERAGE 1. BUILDING Rebuilds the building and everything that is permanently attached to it in case a fire burns it down 2. LIABILITY If a guest slips & falls, gets electrocuted inside your unit, etc. 3. PERSONAL PROPERTY Replaces your stuff, e.g., furniture, electronics, clothing, jewelry, etc. 4. INTERIOR BUILT-INs Rebuilds your upgrades, e.g., hardwood floors, marble countertops, bathroom improvements, etc. 5. LOSS OF USE Pays for your lodging if you have to move out while your unit is being rebuilt 6. LOSS ASSESSMENT Pays for a special assessment THE TAKEAWAY: You will still need coverages #2 - #4, #5 & #6 are good to have, but optional 3

4 HOW A MASTER INSURANCE POLICY BENEFITS YOU SAVES MONEY - Although dues are increasing by about $90 per unit per year, the premium on your personal insurance policy should decrease by more than $90 when you drop your expensive building coverage. On balance, the change should save you money. LESS RISK - You will no longer be at risk if your neighbor does not have insurance and s/he burns down their unit and yours EASIER - If a fire destroys your unit, the association will file the claim and manage the rebuilding effort FASTER - If several units are damaged or destroyed, the rebuilding period should be faster 4

5 HOW A MASTER INSURANCE POLICY BENEFITS PARK VILLA FOREST PARK LESS RISK - The association is no longer at risk if a unit burns down and the owner does not have insurance or is grossly under-insured SIMPLICITY - If a fire damages or destroys more than one unit, we will be dealing with a single insurance company FASTER Because we will be dealing with a single insurance company, damaged or destroyed units should be rebuilt faster 5

6 WHAT THE MASTER POLICY WILL AND WON T COVER IF YOUR UNIT IS DAMAGED OR DESTROYED WILL pay to rebuild your unit to move in condition, e.g., medium grade carpets, vanities / cabinets / countertops, plumbing & electrical fixtures, textured drywall & paint WILL pay to replace the stove and dishwasher WON T pay to replace your personal possessions or upgrades WON T pay to replace your backyard improvements WON T pay to replace your car if it burns up while in the garage (your automobile insurance will cover this) 6

7 WHO SHOULD YOU CONTACT? Most companies that provide auto insurance also provide HO6 policies, e.g., AAA, Allstate, Farmers, State Farm, Travelers, etc. The companies listed above offer discounts if you have your auto insurance + homeowners insurance with them Don t have an agent? Contact Leani Boyd at Bay Area Insurance * at (650) , ext 106 or Warren Eide at AAA in Palo Alto at (650) for a no obligation quote * BAI is the agent for PVFP s master insurance policy. They are agents for Travelers and Safeco. 7

8 COVERAGE AND PREMIUM COMPARISONS: AAA ONLY * Coverage Type Coverage Level Coverage Amount $75,000 upgrades + $60,000 personal property $50,000 upgrades + $60,000 personal property $25,000 upgrades + $60,000 personal property $25,000 upgrades + $25,000 personal property Liability high $1M $51 $51 $51 Liability medium $500K $20 Personal property high not quoted Personal property * medium $60K $328 $328 $328 Personal property * low $25K $171 Interior built-ins high $75K $150 Interior built-ins medium $50K $100 Interior built-ins low $25K $50 $60 Loss of use constant $12K uded uded uded uded Loss assessment not quoted n/a Deductible $1K -$64 -$64 -$64 -$38 Premium $465 $415 $365 $213 * Quotes are not guaranteed to be accurate 8

9 COVERAGE AND PREMIUM COMPARISONS AAA, ALLSTATE, FARMERS, STATE FARM AAA Allstate State Farm Travelers Type of coverage Coverage Premium Coverage Premium Coverage Premium Coverage Premium Personal liability $1,000,000 * $51 $1,000,000 * $105 $1,000,000 * $85 $500,000 Personal property (your stuff) $60,000 * $328 $60,000 * $260 $60,000 * $336 $60,000 * Incl Building property (upgrades) $75,000 * $150 $75,000 * $82 $75,000 * $171 $75,000 * Loss of use (relocation costs) $12,000 one year n/a not $30,000 Loss assessment (special assessment) $5000 $50,000 $10 $25,000 $7 $49,000 Medical payments /$5000 $5000 $9 Credit card & forgery n/a not TBD Damage to other's property n/a not $500 $500 n/a not Deductible * -$64 Discount 1 Home & auto Claim free -$30 Claim free Discount 2 Home alert -$12 Home alert Discount 3 Home & auto -$8 Master policy NET PREMIUM $465 $466 $520 $416 * Coverage levels are equal, i.e., apples-to-apples NOTE: Quotes are not guaranteed to be accurate 9

10 WHAT YOU SHOULD DO Contact your agent to adjust your personal insurance policy so that it is compatible with the new master policy that udes building coverage effective January 1, 2011 at 12:01 AM Resident owners will need to switch to a HO6 policy, aka a condo owner s policy Landlords will need to switch to a landlord s policy, which contains coverage for lost rent if you want it Your agent will need to know what the master policy covers so show him/her the next page with the coverage PVFP intends to buy Decide how much coverage you want for your personal property, (aka your stuff), interior upgrades, and relocation expenses (see page 8 for examples of how the premium changes as you increase or decrease coverage levels) If your current coverage expires later in 2011, be sure to ask for a credit for the unused portion of your current policy 10

11 MASTER INSURANCE POLICY DETAILS PVFP s new master insurance policy will become effective on January 1, 2011 at 12:01 AM. For more information on its terms and conditions so that you can tailor / downgrade your personal policy and avoid purchasing duplicate coverage have your personal insurance agent contact: Bay Area Insurance (BAI) (650) , ask for Lisa, ext 104 or Wendy, ext 105 or Stina, ext 103 For information on purchasing a personal insurance policy for your unit e.g., a HO6 policy or to get a quote to compare to your current coverage, contact Leani at ext 106. BAI offers policies from Travelers and Safeco. 11

12 Traveler s HO-6 brochure with explanations of types of coverage 12