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Mobile or Manufactured Home Actual Cash Value Loss Settlement

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					            Mobile or Manufactured Home Actual Cash Value
                       Loss Settlement Change
                          Frequently Asked Questions for Policyholders


      1.    What is changing?
      2.    What does this change mean for me?
      3.    Why is this change occurring?
      4.    What exactly does the law say about this requirement?
      5.    What policy types are affected by this change?
      6.    When is this change effective?
      7.    If my mobile or manufactured home suffers a total loss, will Citizens pay the
            depreciated value?
      8.    Am I able to purchase replacement cost coverage on my mobile or manufactured
            home for an additional premium?
      9.    Will I receive further notification of this change closer to my renewal date?
      10.   Do I need to take any action as a result of this change?
      11.   What should I do once I receive the new policy?
      12.   Updated. What methods can be used to assist in determining actual cash value
            of my mobile or manufactured home and correct Coverage A amount?
      13.   Since my loss-settlement coverage is being decreased, will my premiums go
            down?
      14.   What is the depreciation schedule used to determine actual cash value?
      15.   When will my mobile or manufactured home be fully depreciated?


      1.    What is changing?
            Partial losses for mobile or manufactured homes built prior to 1994 will be paid at
            actual cash value instead of replacement cost.
            Top ↑


      2.    What does this change mean for me?
            If your mobile or manufactured home was built prior to 1994, this change
            reduces your coverage and may significantly reduce the amount of payment you
            receive for a loss. If a covered loss is determined to be a total loss, Citizens will
            pay the Coverage A (dwelling) limit of liability, as listed on your policy
            declarations page. If a covered loss on the home is a partial loss, we will pay the




Citizens Consumer and Agent Services                                                         April 1, 2011
MH ACV Loss-Settlement Change FAQ’s for Policyholders                                         Page 1 of 4
            depreciated value (actual cash value) of the damaged portion, up to the
            Coverage A limit of liability as listed on your policy.
            Top ↑


      3.    Why is this change occurring?
            A change to Florida law now requires Citizens to pay actual cash value for any
            partial losses for mobile or manufactured homes built prior to 1994.
            Top ↑


      4.    What exactly does the law say about this requirement?
            Florida Statute 627.351 (6)(c )16 states, “The plan of operation for the
            corporation [Citizens] must limit coverage on mobile homes or manufactured
            homes built prior to 1994 to actual cash value of the dwelling rather than
            replacement costs of the dwelling.”
            Top ↑


      5.    What policy types are affected by this change?
            Mobile homeowners policies and mobile home dwelling-fire policies that provide
            dwelling coverage will be affected.
            Top ↑


      6.    When is this change effective?
            January 1, 2010. All renewal offers after this date for policies that provide
            dwelling coverage on mobile or manufactured homes built prior to 1994 include
            an actual cash value loss settlement provision.
            Top ↑


      7.    If my mobile or manufactured home suffers a total loss, will Citizens pay
            the depreciated value?
            In the event of a covered total loss, Citizens will pay the limit of liability of
            Coverage A shown on your declarations page.
            Top ↑


      8.    Am I able to purchase replacement cost coverage on my mobile or
            manufactured home for an additional premium?
            No, not on the mobile or manufactured home itself. Replacement cost coverage
            is still available on personal property (contents), however, if you have a mobile
            home owners policy. Replacement cost coverage for personal property remains
            unavailable for policyholders with mobile home dwelling-fire policies.
            Top ↑




Citizens Consumer and Agent Services                                                            April 1, 2011
MH ACV Loss-Settlement Change FAQ’s for Policyholders                                            Page 2 of 4
      9.    Will I receive further notification of this change close to my renewal date?
            Yes. You will receive an Important Notice of Coverage Changes in the mail
            approximately 180 days prior to the policy renewal date. Then, approximately 60
            days before your current policy expires, you will receive a renewal offer that
            includes a new policy as well as a notice reminding you of the actual cash value
            loss settlement coverage change.
            Top ↑


      10.   Do I need to take any action as a result of this change?
            The change will be included in the new policy that will be offered to you before
            your current policy expires. If you accept the new offer, all you need to do is pay
            your premium.
            Top ↑


      11.   What should I do once I receive the new policy?
            It’s very important that you read it carefully. Review your policy documents as
            well as your coverage limits and deductibles. Confirm that your mailing address
            and lender/mortgagee information are correct. Discuss any coverage needs or
            corrections with your agent. Your agent’s name, address and telephone number
            are listed on the policy declarations page.
            Top ↑


      12.   What methods can be used to assist in determining actual cash value of
            my mobile or manufactured home and correct Coverage A amount?
            Contact your agent, who can assist you. The following documents are used to
            evaluate the actual cash value and can be submitted by your agent:
            • A completed ePAS Cost Estimator OR
            • A residential appraisal no more than one year old completed by a Florida
               licensed appraiser that reflects the depreciated value of improvements
            Top ↑


      13.   Since my loss settlement coverage is being decreased, will my premiums
            go down?
            No. Your Coverage A amount is not affected by this change and limit of liability
            for Coverage A, as listed on your policy declarations, will be paid in the event of
            a total covered loss. There were other rate changes that took effect on January
            1, 2010, however, so your actual premium may have changed as we have
            moved toward actuarially sound rates.
            Top ↑


      14.   What is the depreciation schedule used to determine actual cash value?
            Each loss is different, and determining the appropriate amount of depreciation is




Citizens Consumer and Agent Services                                                        April 1, 2011
MH ACV Loss-Settlement Change FAQ’s for Policyholders                                        Page 3 of 4
            part if the claim adjustment process. Depreciation is based on many factors
            including the age, type, use and condition of the damaged property.
            Top ↑


      15.   When will my mobile or manufactured home be fully depreciated?
            As long as items are being used, they still have value and will be adjusted
            accordingly, based on the actual cash value for partial losses. You should
            continue to monitor the value of your mobile or manufactured home and your
            Coverage A amount and work with your agent to be sure your Coverage A
            amount is appropriate.
            Top ↑




Citizens Consumer and Agent Services                                                      April 1, 2011
MH ACV Loss-Settlement Change FAQ’s for Policyholders                                      Page 4 of 4

				
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