Question on Homeowners Policy

Submitted by mega on Thu, 01/24/2008 - 01:07

I recently purchased a home and the will be closing soon. I have a question about the policy that hopefully someone will be able to explain. One of the question the agent ask was if I wanted Earthquake coverage also. Now I am buying a home in N.E. Ar, and it is not on any fault line nor have I ever heard of any kind of earthquake anywhere near the area I am purchasing at. So of course I said no. That was fine and I got a quote. However after a few minutes the agent said he had to check something. Then he came back and said that I would have to purchase the Earthquake coverage ( an extra $27.00 per year) in order for him to write the policy but that they would send me a wavier in the mail with my policy that I could sign and send back. If I did this then they would take off that coverage and refund that part of the premium.

My question is why would something like that "HAVE" to be included if they will allow you to have it removed by simply signing a waiver?

Thanks for any info on this.

Posted: 24 Jan 2008 05:21 Post Subject: me too!

Hi!

I'm also a newbee at the ampminsure forums. Always, believed that it would be a boring place to discuss financial topics...just been visiting these forums for the last four days. Its truly awesome...with so many friendly members!
I hope you're also a new member...so I am also considering my registering with this site by the weekend.

Thanks,
Carbonapple

Posted: 24 Jan 2008 05:25 Post Subject: tally the facts!

Now I am buying a home in N.E. Ar, and it is not on any fault line nor have I ever heard of any kind of earthquake anywhere near the area I am purchasing at. So of course I said no.

Well my friend there is more to believing than just hearing! That is the reason, I'd request you to check out with the necessities underlined by your state. You may visit the DOI for tallying the facts.
InsuranceVictim08

Posted: 24 Jan 2008 06:00 Post Subject: Keep an eye on everything that comes your way!

Hey, listen...there are some things we need to analyze first. Then only we'd be able to understand the cores of our problems in a better way!

Then he came back and said that I would have to purchase the Earthquake coverage ( an extra $27.00 per year) in order for him to write the policy but that they would send me a wavier in the mail with my policy that I could sign and send back.



He too being an agent has to work for the interest of his organization. So may be he tried to persuade you to buy it separately at first, failing which he went through this option. May be the guidelines state that you have to maintain this policy alongside your home policy & he knows that selling it to you devoid of the Earthquake policy might just get him into any sort of trouble in the long run.

So, in your case it is wiser for you to be extra careful about signing the papers. In case you find any of the clauses difficult to comprehend it is better you call the adjuster sooner & get everything under your finger tips!
Getting things under your control would surely help avoid confusions in the future. - Lord-of-the-rings

Posted: 24 Jan 2008 11:51 Post Subject:

My question is why would something like that "HAVE" to be included if they will allow you to have it removed by simply signing a waiver?

Now I am buying a home in N.E. Ar,

Oh my dear brother I'm afraid you are severely incorrect/mistaken about that! Because you are on one of the largest fault lines in the nation that's why! And near the worse earthquake in history!!! I think about 1815 or so? Ever heard of the New Madrid fault? Supposed to have a really bad one ''some'' day...I live in NW Missouri...I carry earthquake assumption...Seriously, for the cost (mine is way higher that you list) it's worth it to me...If you don't have it and the unthinkable happens you are just totally out of luck! Also something worth mentioning, earthquake coverage 'generally' bares a different kind of deductible generally a percentage, like 2% or 11% I can't remember...

Mega there have been minor quakes in your area within the last week for pete's sake! :P check this out! http://showme.net/~fkeller/quake/index.htm#m

Anyway the reason you 'have to have it' then can sign off, is they don't want you coming back to them after a quake saying, 'i didn't know!' so you have to 'offically' decline the coverage....

Keep it!

Posted: 24 Jan 2008 12:02 Post Subject: Ahh Yes

I did know of The New Madrid Fault but did not realize the extent that it ran. Once you posted this I did some looking into the area we are moving and you are most certainly correct! Reckon that insurance guy knew what he was talking about after all. And you are correct I will be keeping it.

Although anything was to ever happen I hope it's the neighbors house not mine! LOL .

Just kidding of course

Posted: 24 Jan 2008 12:04 Post Subject:

Hi Carbonapple and welcome! Glad you found us! Please do register, and make a little money as you post!

Posted: 24 Jan 2008 12:12 Post Subject:

Better safe than sorry...I belive that when I researched this extensively about fifteen years ago, that ''our'' fault is the worse one in the country! Go figure! Very scary prospect...but again I'd rather pay the (for 100 bucks) extra per year than have to worry about it!

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