Homeowner Deductibles

[Policy Monkey]

Non-agent consumer.

What does that mean please?

An HO3 is a regular homeowners policy. Assuming standard ISO language, it covers the house (including the roof) at replacement cost on an "open perils" basis. (In short, all causes of loss are covered unless specifically excluded.)

HO2 and HO1 forms are not really used in FL, but I assume they are similar to an HO8 which is like an HO3 but on a "named peril" basis. (In short, all causes of loss are excluded unless specifically covered.)

 

[Al3x Lee]

ACV is the answer.

 

[ehall2]

With the HO3 all losses unless excluded are covered for the dwelling but the contents or personal property as some people say are insured for named perils as are in the HO2. An HO 5 covers the dwelling and contents for all risk except what is excluded. An HO 8 is an ACV policy.

 

[LostDollar]

Percentage deductibles aren't the answer, ACV is. Everyone deserves their actual trash value.

Caveat, not an agent

Now that I know what ACV means,
Isn't that a process that could leave low income homeowners homeless and declaring bankruptcy?

 

[ehall2]

ACV is the cost to repair or replace less depreciation.

 

[Policy Monkey]

Isn't that a process that could leave low income homeowners homeless and declaring bankruptcy?

Sadly, yes. Even middle income homeowners could be up a creek. I'm not sure how many John Q Workingmen have $10k+ laying around to finish a roof replacement, even after the insurance settlement.

I'm a fan of Al3x Lee. He has been making strong points on this topic for years now. But at the end of the day, I wouldn't want ACV on my house.

 

[ehall2]

I wouldn't want an ACV policy on my house. I just had a roof claim on a house with 2900 square feet. Hail storm damaged the roof and the cost to replace was $20,000. If you have an ACV policy and your has 30 year shingles but the roof is 15 years old you could have your roof depreciated 50%. The average person doesn't have $10,000 or more to replace their roof.

 

[shawnmwalker]

I'm not saying ACV is the answer, I am saying the Carrier President said ACV was the answer.

 

[ehall2]

Just read a report this morning from Carrier Management titled, "U.S. P/C Insurers Post Best Q1 Underwriting Result in 17 Years. Even though direct loss ratios for commercial auto and other liability lines rose in first-quarter 2024, across all lines U. S. property/casualty insurers posted a net combined ratio of 94-- the best since first quarter 2007. I read in another publication yesterday Progressive lost 8 billion first quarter of 2023 but made 9 billion first quarter 2024. So, what's the problem.

 

[shawnmwalker]

@ehall2 ,

Property is the problem.