[Use
Back arrow To Return]
Mobile or Manufactured Home
Actual Cash Value Loss-Settlement Changes
Frequently Asked Questions [From CitizensFla.com]
June 24, 2009
- What is changing?
- What does this change mean for me?
- Why is this change
occurring?
- What exactly does the law
say about this requirement?
- What policy types are
affected by this change?
- When will this change become
effective?
- If my mobile or manufactured
home suffers a total loss, will Citizens pay the depreciated value of the
mobile or manufactured home?
- Am I able to purchase
replacement cost coverage on my mobile or manufactured home for an
additional premium?
- Will I receive further
notification of this change closer to my renewal date?
- Do I need to take any action
as a result of this change?
- What should I do once I
receive the new policy?
- 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.
- 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 your mobile or manufactured home is partially
damaged, the most Citizens will pay you is the depreciated value of the
damaged portion of any covered loss, but never more than the limit of
liability of Coverage A shown on your Declarations page.
- 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.
- What exactly does the law say
about this requirement?
Florida Statute 627.351(6)(c)16
states, "The plan of operation of 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."
- What policy types are affected
by this change?
Mobile home homeowner's policies and mobile home dwelling-fire policies
that provide dwelling coverage will be affected.
- When will this change become
effective?
Beginning January 1, 2010, all renewal offers for policies that provide
dwelling coverage on mobile or manufactured homes built prior to 1994 will
include an actual cash value loss-settlement provision.
- If my mobile or manufactured
home suffers a total loss, will Citizens pay the depreciated value of the
mobile or manufactured home?
In the event of a covered total loss, Citizens will continue to
pay the limit of liability of Coverage A shown on your Declarations
page.
- Am I able to purchase
replacement cost coverage on my mobile or manufactured home for an
additional premium?
Not on the mobile or manufactured home itself. However, replacement cost
coverage is still available on personal property (contents) if you have a
mobile home homeowners policy. Replacement cost coverage for personal
property remains unavailable for policyholders with mobile home dwelling
fire policies.
- Will I receive further
notification of this change closer to my renewal date?
Yes. Approximately 60 days before your current policy expires, you will
receive a renewal offer that will include a new policy as well as a notice
reminding you of the actual cash value loss-settlement coverage change.
- 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.
- What should I do once I
receive the new policy?
It's very important that you read it very carefully. Do not hesitate to
contact your agent if you have any questions.