California Homeowner Insurance Valuation for Adjusters

Besides providing valuable information and resources for Adjusters and Public Adjusters in California to better serve their clients, this course was developed and is available for Adjusters and Public Adjusters to complete as part of their continuing education requirements.

Accurately valuing property to be insured and at claim time should not necessarily fall to the homeowner who has little experience in such matters. This course provides a response to that need as well as an answer to the training required in California on this subject.

California has approved regulations specific to the standards and training for estimating the replacement value on homeowners’ insurance. The regulations were promulgated for the purpose of fully implementing specific CA Codes and Regulations which are specific to requirements for the proper methods of estimating the replacement value of structures and of explaining various levels of coverage under a homeowners insurance policy.

Topics That Adjusters and Public Adjusters need to know about include:

• Differences between Homeowners’ – Dwelling Property Policies
• Basic Concepts of Property Valuations
• Components of a Structure Necessary to Estimate Replacement Cost
• Effects of Catastrophes on Replacement Cost
• Enhancements and Endorsements to the Homeowners/Dwelling Policy and Identification of Coverages that Help Protect Against Underinsurance
• Basic Fire Policy
• Types of Basic Building Construction
• Methodology of Determining Value
• Fire Mitigation and How It Affects Insurance Costs

The regulations, where they exist, provide for the following:

• Sets out requirements applicable to replacement value and replacement cost estimates to create a more consistent, comprehensive and accurate replacement cost calculation;
• Sets forth standards for Adjusters and Public Adjusters who estimate replacement cost for insurance purposes;
• Requires the application of certain standards when estimating replacement cost and construction costs; and
• Establishes record keeping requirements.

To meet the training requirements contained in regulations in California, the Insurance Commissioner specifies the subjects to be covered in homeowners valuation courses. We have followed those requirements.