Calif. State Sen. Speier Unveils Homeowner’s Reform Bill

December 14, 2004

  • December 15, 2004 at 9:47 am
    CA Adjuster says:
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    The solution is much simpler than Spier’s is proposing. As with the “All Risk” coverage, just make it a “No Limit” policy. I’m sure the public will claim only what they need.

  • December 15, 2004 at 3:51 am
    Tom says:
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    Hmmm, let me see – a total loss and no need to prove what the contents were? Sounds like an invitation to fraud and creating an immense “moral hazard” by statute.

    Also, essentially outlawing cost guides means that the insureds and agents are now going to have to come up with an estimated replacement cost and bear the full responsibility for errors.

    Does this strike anybody else as the wrong way to approach this issue?

  • December 15, 2004 at 4:43 am
    Former CA Agent says:
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    Not only are CA agents now required to be Replacement Cost Appraisers, but your commissions are probably going to be even further reduced and you will no longer be able to charge a fee for services – more work less money. With CA’s over-inflated cost of living, all of the small CA agents I know will soon be below the poverty line.

    Consumers need to be more responsible for their insurance. No, I don’t expect them to come in fully understanding the policy verbiage, which is my job, however I expect my clients to have an idea as to how much their property is worth, or be willing to pay for a proper appraisal. There are far too many clients who BEG me to decrease their building values because they cannot afford the premium. Now I would be fully responsible for what is clearly the consumers educated decision.

    In addition, there is no way that your average insurance agent is going to be able to properly appraise all buildings. I work exclusively with Historic Buildings, which tend to go completely off the charts for replacement cost. The costs associated with my historic building are going to be far greater than your newer building. And even the values between historic building and historic building can differ immensely depending on the individual characteristics of the decor. There is no way this is proposed system will work without either leaving the agent with a sever E&O exposure (how’d you like to pay those E&O rates?) or the agent being forced to charge an arm and a leg for appraisal services – then homeowners will whine and cry about not being able to afford insurance.

    I’m sorry that some people lost their property and were not fully insured. If an agent truly erred, then sue that agent for their error. If the software used was incorrect, then sue the software company for their error. Remember, the insured is the one who is responsible for the content of the application. The insured must sign and approve that application. The insured MUST bear some responsibility.

    If CA continues to make the insurance industry unfriendly to Agents and Brokers, consumers will no longer have representation for their interests. Instead they will be “stuck” with the telemarketing style CSR shops associated with direct writers, which typically do not offer the personalized service usually provided by an independent agent or broker.

    While it is important to protect consumers from being taken advantage of, it is equally as important to remind them that they must be responsible for the decisions they make as educated adults.

    In their efforts to further their careers, these supposedly “consumer friendly” politicians are slowly pushing out the small businessperson in your state. Don’t let them keep handing consumers a crutch with which they no longer have to bear responsibility for their own actions. As a consumer, I don’t need nor do I want that crutch. I would rather have the freedom to choose where I spend my money, rather than have my choices severely limited by an uneducated politician who claims to be acting in my best interest and forces small business out of my state.

  • December 16, 2004 at 11:10 am
    Rick - property claims says:
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    This is exactly what we need is more legislative involvement. No matter what we do on a claim, some people are never satified. Is Sen Spears a licensed public adjustor????



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