44 Second Street San Francisco, CA 94105 (415) 512-2100 Facebook Twitter LinkedIn Google+ Yelp


Car and House

Personal Insurance

We provide a full range of coverages for your personal insurance needs. From the first time buyer, to high valued homeowner, automobiles, and umbrellas. We will review, quote, and secure coverages for your needs.

Get Started

Commercial Insurance

From the initial startup company to the publicly traded corporation, we will review, quote, and secure coverage for your business. We have found that transferring risk to an insurance company is often the most efficient way to protect your corporate assets and human resources.

Get Started

Health & Life Insurance

Protect the ones you love the most with the proper coverage for your needs. Everyone’s needs are unique and finding secure coverage can be stressful. Whether you want to cover your family, yourself or the people who help your business going, we’ll find the right plan for you.

Get Started

Dear Sweet & Baker,

I've had my current home insurance policy since 2011, and now the insurance company says it has to do an "interior survey" of my home. We've never needed a home insurance inspection before.

I live in San Francisco, my home was built in 1950, and I've always had homeowners insurance. No one in my family has ever heard of this type of survey. Is it something new?


Dear Casey,

Yes, the on-site home insurance inspection (also called a survey or appraisal) is something new.

Home insurance policies are designed so the coverage could potentially replace a home with a new one, and that's true even with a 63-year-old home like yours. The only requirement is that you must insure your home for its "full replacement cost." If you miss that mark and insure your house for less than what a replacement would cost, you won't have enough to rebuild in the event of a total loss and could be subject to depreciation penalties on partial losses.

Who determines what that replacement cost amount should be? Traditionally, an agent of the insurance company has used a computer program that factored in the type of structure, the square footage of each level, the number of bathrooms, the sizes of porches and decks, etc. That could be done relatively easily without a detailed interior inspection. However, after major storms, insurance companies have been discovering that people were buying coverage that was often way below today's replacement costs.

The need became apparent for a more accurate appraisal system, requiring on-site inspections and qualified appraisers. The cost of appraisals went up, but the accuracy improved. So yes, you will need to cooperate with your insurance company, and the home insurance inspection may be a bit of an inconvenience. But the good news is that the final appraised amount will be much more accurate.

With a 63-year-old home, be sure to request "a home replacement guarantee" that would pay at least 25% more than the home insurance amount in case of increased construction costs due to any supply and demand problems following a major storm that destroys or seriously damages multiple homes and has homeowners all wanting to be rebuilt at the same time.

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive

View Mobile Version
Contact Us
Latest Blog Posts   Checklists

Personal Insurance We offer many different ways to help you cover your valuables. Check off the coverages you would like to discuss with us. Start >>
Commercial Insurance Each business is unique and requires a unique policy. Check off the coverages you would like to discuss with us. Start >>
Health & Life Insurance Be prepared for the road ahead. Let us know what services you are interested in learning more about by filling out this checklist. Start >>
Our Partners
Our Location About Sweet & Baker Commercial Services Personal Services Health & Life
Sweet & Baker Insurance Brokers
44 Second Street
San Francisco, CA 94105 - 3440
Phone: (415) 512-2100
Fax: (415) 512-1115
M-F 9am-5pm
License# 0B60897
Our Team
Compensation Disclosure
In The News
Insurance Links
High Value Homes
Estate Planning
How to Choose A Plan
Directory of Providers
Employee Connection
HR Services / HR Hotline Alert
Life Insurance for Key-Person
Maxwell Health ThinkHR