2014 New Issues:
Q. Why has my rents value increased from last year?
A. Rent insurance is designed to protect the gross income members receive from their investment. While the insured amount of rent may be accurate for members who have kept rent amounts up to date or only recently joined the Insurance Program, many members have been insured in the Program for several years without ever updating rents, even as lease terms changed. It’s important that all members recognize the insured rent amount needs to be correct in order to recover the full amount in the event of a loss. Members who have Tax Reimbursement Riders with their leases should be careful to make sure the rent amount on the certificate is sufficient to include rent represented by Tax Reimbursements, as well as the base rent. The USPS database does not provide Tax Reimbursement information, and we are therefore unable to check that for lessors.
We also want to add that if your rents value on your certificate was less than the USPS database number, we used the higher USPS database rents because we do not know whether the difference is a result of a Tax Reimbursement or another cause. If you notice that your actual rents, including any Tax Reimbursement, are less than what we show on your certificate, please let us know and we will gladly lower the value and refund any applicable premium.
Q. I see where Earthquake is excluded on my certificate.
A. If your building is located in a high hazard area like California, Alaska, parts of Tennessee, Missouri, Arkansas and other areas, the Program excludes direct loss from earthquake and your certificate is marked accordingly. Many members purchase specific coverage against losses from earthquakes. Those members will notice that the premiums for that coverage have fallen from last year. If your certificate excludes earthquake coverage but you think you might need it, please call us, and we can give you a premium quote over the phone.
Q. Do I have coverage for flood?
A. Yes, but the deductible varies depending on the location of your building. If your building is in a FEMA zone, A, B, V, shaded X or X500 you have flood coverage with a $500,000 deductible. If your building is in one of these zones, you are normally eligible for Federal Flood coverage, and we can arrange that for you. If your building is NOT in one of those zones, you have flood coverage subject to a $25,000 deductible. If you are not sure which zone your building is in, we suggest you call our office at 877-642-8775 and we will check for you. FEMA zones can change from time to time.
Q. What if my Post Office closes or the USPS moves out of my building?
A. it’s very important that you call us to discuss your options, as your coverage will change if your building becomes vacant, even if it is still technically under lease.