ORANGE COUNTY HOMEOWNERS INSURANCE RATES
The State of California Dept. of Insurance, Consumer Affairs Division recently released the results of its first “Comparative Premimum Survey On Homeowners Insurance,” based on rates effective in July 1987. The statewide study was designed to show annual premiums for three rating examples: a typical 45-year-old home, a 25-year-old home and a newer home with higher value. According to Milo Pearson, chief of rate administration bureau, 20 of the state’s largest homeowners insurers and cities having the highest population rates were selected for the survey. In Orange County, officials selected Anaheim, Santa Ana and Huntington Beach.
EXAMPLE A Structure Single-family dwelling Year built: 1982 No losses within the last 3 years Deductible: $500 Coverages A. Dwelling: $200,000 B. Other structures:20,000 C. Contents*: 100,000 D. Additional living: 40,000 E. Personal liability: 300,000 F. Medical payments: (each accident) 25,000 (each person) 1,000 * Replacement cost on contents HOMEOWNERS INSURANCE ANNUAL PREMIMUM RATES FOR EXAMPLE A
City Zip code Aetna Allstate All West Anaheim 92801 $542 $531 $606 Santa Ana 92704 542 531 606 Huntington Beach 92648 460 556 606 City Zip Code Hartford Oregon Mutual Prudential Anaheim 92801 $529 $426 $542 Santa Ana 92704 529 426 539 Huntington Beach 92648 529 426 542
City Blue Ridge AAA Cal-Mutual Chubb Group Continental Fire Ins Exchange Firemans Fund Anaheim $526 $694 $444 $484 $606 $481 $521 Santa Ana 594 694 444 484 643 481 521 Huntington Beach 526 694 444 484 606 430 497 City Reliance Safeco State Farm Transamerica Travelers 20th Century West American Anaheim $545 $628 $673 $514 $658 $430 $525 Santa Ana 545 628 673 514 658 430 525 Huntington Beach 545 552 602 514 658 395 489
** All rates include a new home credit.
*** Limitations: All West, limit for contents coverage is 70% ($140,000) of the dwelling amount.
California State Automobile Association (AAA), limit for contents coverage is 70% ($140,000) of the dwelling amount.
Chubb Group, coverage “B”--other structures are 20% of the dwelling amount. In this case, $40,000. Additional living expense is on an unlimited basis.
Farmers, limit on coverage “C” is 75% ($150,000) of the dwelling amount. Additional living expense is 50% ($100,000) of the dwelling amount.
State Farm, limit for contents coverage is 70% ($140,000) of the dwelling amount.
Twentieth Century, limit for contents coverage is 75% of dwelling amount or $150,000.
**** Specific considerations below
EXAMPLE B Structure Single family dwelling, frame Year built: 1962 No losses within the last 3 years Deductible: $250 Coverages A. Dwelling: $125,000 B. Other structures: 12,000 C. Contents: 62,500 D. Additional living expenses: 25,000 E. Personal liability: 100,000 F. Medical payments: (each accident): 25,000 (each person): 1,000 HOMEOWNERS INSURANCE ANNUAL PREMIMUM RATES FOR EXAMPLE B
City Zip code Aetna Allstate All West Anaheim 92801 $418 $347 $348 Santa Ana 92704 418 347 348 Huntington Beach 92648 361 365 348 City Zip Code Hartford Oregon Mutual Prudential Anaheim 92801 $350 $306 $401 Santa Ana 92704 350 306 399 Huntington Beach 92648 350 306 401
City Blue Ridge AAA Cal-Mutual Chubb Group Continental Fire Ins Exchange Firemans Fund Anaheim $357 $452 $344 $342 $379 $365 $357 Santa Ana 403 452 344 342 401 365 357 Huntington Beach 357 452 344 342 379 327 340 City Reliance Safeco State Farm Transamerica Travelers 20th Century West American Anaheim $415 $399 $439 $329 $397 $303 $338 Santa Ana 415 399 439 329 397 303 338 Huntington Beach 415 337 400 329 397 277 314
* Limitations: Chubb Group coverage “B,” other structures are 20% of the dwelling amount or $25,000 for example B.
Farmers, contents are 55% ($68,750) of the dwelling amount. Additional living expense is 30% ($37,500) of the dwelling amount.
Prudential, substituted rates for coverages “A” at $130,000, “B” at $13,000, “C” $65,000 and “D” at $26,000.
State Farm, contents are 55% ($68,750) of the dwelling amount.
Twentieth Century, limit for contents coverage is 75% of the dwelling amount or $93,750.
**** Specific considerations below
EXAMPLE C Structure Single-family dwelling, frame Year built: 1942 No losses within the last 3 years Deductible: $250 Coverages A. Dwelling: $ 80,000 B. Other structures: 8,000 C. Contents: 40,000 D. Additional living expenses: 16,000 E.Personal liability: 100,000 F. Medical payments: (each accident): 25,000 (each person): 1,000 HOMEOWNERS INSURANCE ANNUAL PREMIMUM RATES FOR EXAMPLE C
City Zip code Aetna Allstate All West Anaheim 92801 $369 $234 $256 Santa Ana 92704 369 234 256 Huntington Beach 92648 324 246 256 City Zip Code Hartford Oregon Mutual Prudential Anaheim 92801 $377 $209 $261 Santa Ana 92704 377 209 261 Huntington Beach 92648 377 209 260
City Blue Ridge AAA Cal-Mutual Chubb Group Continental Fire Ins Exchange Firemans Fund Anaheim $268 $299 $246 $229 $272 $278 $241 Santa Ana 303 299 246 229 288 278 241 Huntington Beach 268 299 246 229 272 232 230 City Reliance Safeco State Farm Transamerica Travelers 20th Century West American Anaheim $268 $330 $337 $219 $312 $209 $263 Santa Ana 268 263 283 219 312 192 245 Huntington Beach 314 330 337 219 312 209 263
* Limitations: Chubb Group, coverage “B,” other structures are 20% of the dwelling amount or $16,000. Additional living expense is on an unlimited basis.
Farmers, contents are 55% ($44,000) of the dwelling amount. Additional living expenses is 30% ($24,000) of dwelling amount.
State Farm, contents are 55% ($44,000) of the dwelling amount.
Twentieth Century, limit for contents coverage is 75% of the dwelling amount or $60,000.
** Most companies may require updated plumbing and circuit breakers for a dwelling built in 1942.
**** Specific considerations below
**** SPECIFIC CONSIDERATIONS FOR RATING EXAMPLES
Farmers--Rates include a 4% non-smoker discount; age 50 plus discount (6% for age 55)
and a 5% home security discount.
State Farm--All examples provide additional living expense on an actual loss sustained basis within 12 months and medical payments have no limit per accident. The company also offers qualifying homeowners a “Homeowners Extra” policy which offers broader coverage at a different rate level.
Twentieth Century--No monetary limit on additional living expense but there is a 12-month limit. There is no monetary limit per occurrence on medical payments.
Allstate--implemented a general rate increase of 5.6% effective Sept. 7, l987.
Continential (Fireman’s Insurance Company of Newark)-had a general rate decrease of 3% effective Aug. 1, l987.
Transamerica--had a general rate decrease of 1% effective Oct. 1, l987.
United Pacific--had a general rate decrease of 5% effective Aug. 1987.
* Note: the percentage of premium increase or decrease may vary from area to area.
Source: State of California, Dept. of Insurance, Consumer Affairs Division
FINDING HELP WITH INSURANCE
National Flood Insurance Program (NFIP)
(800) 638-6620
Most homeowners insurance policies exclude flood coverage. If you live in a designated community and comply with the government guidelines for flood prevention, however, insurance can be obtained through NFIP.
Federal Crime Insurance Program (FCIP)
(800) 638-8780
Homeowners or tenants in high crime areas who install required safety devices can apply for subsidized insurance with FCIP. Coverage provides for loss due to burglary or robbery.
California Fair Plan (FAIR Plan)
(800) 252-0089
Homeowners living in an urban area or in certain geographical areas (such as brush areas) designated by the FAIR Plan may request fire insurance coverage. The home must meet reasonable underwriting tests such as minimum fire and health protection standards.
California Dept. of Insurance
(800) 233-9045
Homeowners who have problems getting a claim paid, questions about their insurance, or who feel they were treated unfairly regarding an insurance matter should contact the state Dept. of Insurance. Consumer service offices are also located at:
600 South Commonwealth Ave., (9th floor)
Los Angeles, 90005
(213) 736-3582
1350 Front St., Room 3020
San Diego, 92101
(619) 237-7337
Source: State of California, Dept. of Insurance, “Buyers Guide To Homeowners Insurance.” Copies are available free by calling (800) 233-9045.
AVERAGE MONTHLY MORTGAGE PAYMENT IN ORANGE COUNTY Under $250 . . . 23.6% $250-$500 . . . 16.3% $501-$750 . . . 13.7% $750-$1,000 . . . 17.4% $1,001-$1,500 . . . 19.7% Over $1,500 . . . 9.4%
Source: 1987 Orange County Survey
COMMON HOMEOWNERS INSURANCE TERMS
Agent--A person authorized, by and on behalf of an insurer, to sell insurance.
Binder--A temporary or preliminary agreement which provides coverage until a policy can be written or delivered.
Broker--A person who, for payment of a fee by you, looks for insurance on your behalf.
CIGA surcharge--The surcharge applied to homeowners, auto and commerical policies is a recoupment recovery fee authorized in the California insurance code. When an insurance company becomes bankrupt, the California Insurance Guarantee Association (CIGA) handles claims for that company’s policyholders.
Deductible--The amount of the loss that the insured has to pay.
Depreciation--A decrease in value due to age or wear and tear.
Direct writer--An insurance company that sells policies through its employees or an agent who only represents that company.
Endorsement--An amendment to the policy that is used to add or delete coverage.
Exclusion--Certain causes and conditions, listed in the policy, that are not covered.
Increased limits--A policyholder can purchase higher limits for personal property and liability coverages. If the original policy insures personal property up to 50% of the dwelling limit, the policyholder can increase the limits for an additional premium.
Inflation guard endorsement--A homeowners policy endorsed to provide automatic increases to the property limits, keeping limits of insurance equal to current replacement value of a house as inflation increases replacement cost.
Insured--The policyholder, the person or persons protected in case of a loss or claim.
Insurer--The insurance company.
Marketvalue--The amount for which a house could be sold, based on current prices.
Peril--The cause of a possible loss, such as fire or theft.
Personal property replacement cost--The actual cash value of a damaged property that an insurer will pay based on market value at the time of loss.
Policy--The written contract of insurance.
Premium--The amount of money that the policyholder agrees to pay for the insurance policy.
Quote--An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant.
Replacement value--The cost to rebuild a house, excluding the value of the land.
Scheduled personal articles floater--Additional coverage on certain valuable items not insured under policy limits for personal belongings.
Source: State of California, Dept. of Insurance, “Buyer’s Guide To Homeowners Insurance.”
Clipboard researched by Deborrah Wilkinson / Los Angeles Times
