1 00:00:29,299 --> 00:00:34,979 Suze: January 16, 2025. Welcome everybody to the Women and Money 2 00:00:34,979 --> 00:00:39,590 Suze: podcast as well as everybody smart, smart, smart enough to listen. 3 00:00:39,939 --> 00:00:41,180 Suze: What's today, KT? 4 00:00:41,319 --> 00:00:44,299 KT: Ask KT and Susie, anything 5 00:00:44,299 --> 00:00:46,000 Suze: and everything, 6 00:00:46,459 --> 00:00:49,650 KT: anything. But today's also a really special day. 7 00:00:49,900 --> 00:00:50,839 Suze: Why's that? 8 00:00:51,040 --> 00:00:54,500 KT: Well, I'm just gonna kind of set the stage here 9 00:00:54,500 --> 00:00:56,169 KT: for one of our listeners. 10 00:00:56,700 --> 00:01:00,229 KT: So I get an email that says she is an 11 00:01:00,229 --> 00:01:04,110 KT: amazing woman. I have had the pleasure of being her 12 00:01:04,110 --> 00:01:09,550 KT: friend for 40 years and her husband for 32 of 13 00:01:09,550 --> 00:01:14,459 KT: those 40 years. Now Suze, who do you think that's from? 14 00:01:15,639 --> 00:01:19,730 Suze: I have no idea, right? So tell me, who's it from? 15 00:01:19,860 --> 00:01:20,279 Suze: KT 16 00:01:20,279 --> 00:01:21,268 KT: It's from Michael. 17 00:01:21,459 --> 00:01:22,379 Suze: Yeah, what does Michael 18 00:01:22,379 --> 00:01:22,970 Suze: want? 19 00:01:23,300 --> 00:01:28,059 KT: No, Michael wants us to know that today is a 20 00:01:28,059 --> 00:01:29,339 KT: really special 21 00:01:29,339 --> 00:01:29,809 KT: day, 22 00:01:30,059 --> 00:01:35,730 Suze: All right, and today, so KT just handed me his email, right? And, 23 00:01:35,860 --> 00:01:39,940 Suze: and I'm reading this, and it's like, ah, Janet. 24 00:01:41,019 --> 00:01:44,739 Suze: Janet, the queen of the day, because why it... 25 00:01:44,739 --> 00:01:44,769 KT: Michael loves you. 26 00:01:44,790 --> 00:01:48,599 Suze: Michael loves you. Michael loves you so 27 00:01:48,599 --> 00:01:51,769 Suze: much that he got us to want to wish you 28 00:01:51,980 --> 00:01:55,809 Suze: a happy fifty-fourth birthday. 29 00:01:55,900 --> 00:01:57,290 KT: Suze's favorite number. 30 00:01:57,819 --> 00:01:59,989 Suze: It is. It adds up to a 9, and this 31 00:01:59,989 --> 00:02:02,769 Suze: is a 2025, so this is a 9 year. 32 00:02:03,180 --> 00:02:08,699 Suze: And 9 in both Eastern and Western cultures is material 33 00:02:08,699 --> 00:02:14,050 Suze: and spiritual abundance. So Janet, you're a 54, that's a 9. 34 00:02:14,339 --> 00:02:17,300 Suze: This is a 9 year girlfriend. You're going to have 35 00:02:17,300 --> 00:02:20,630 Suze: a great year with that husband of yours. 36 00:02:20,740 --> 00:02:21,020 KT: Happy 37 00:02:21,020 --> 00:02:21,880 KT: birthday, Janet. 38 00:02:22,020 --> 00:02:25,008 Suze: Yeah, sweetheart, happy, happy birthday. All right. 39 00:02:25,380 --> 00:02:28,639 KT: All right. So let's get started, Suze, because this is 40 00:02:28,639 --> 00:02:31,539 KT: also a continuation of Sunday. 41 00:02:32,020 --> 00:02:37,100 KT: We received so many emails from people listening to Sunday's 42 00:02:37,100 --> 00:02:41,089 KT: podcast which really addressed insurance, the what ifs of life, 43 00:02:41,500 --> 00:02:44,779 KT: everything that one needs to do to prepare for in 44 00:02:44,779 --> 00:02:49,388 KT: the event that you were part of the LA fires or... 45 00:02:49,389 --> 00:02:50,160 Suze: ...any catastrophe. 46 00:02:50,220 --> 00:02:53,418 KT: Any kind of, you know, situation like that. 47 00:02:53,710 --> 00:02:57,380 KT: So I'm going to start with Samantha. She said, Suze, 48 00:02:57,500 --> 00:03:01,220 KT: on Sunday's emotional podcast, you asked us to look at 49 00:03:01,220 --> 00:03:05,580 KT: our insurance policies, and I did. Now I have an 50 00:03:05,580 --> 00:03:09,429 KT: appointment with my agent that truthfully I haven't spoken with 51 00:03:09,429 --> 00:03:14,100 KT: in 7 years. Can you just briefly tell me what 52 00:03:14,100 --> 00:03:17,619 KT: I'm looking for in the policy, Suze? I feel like 53 00:03:17,619 --> 00:03:21,299 KT: I'm in grammar school all over again learning the alphabet. 54 00:03:21,630 --> 00:03:24,399 KT: But I just want to be a little knowledgeable when 55 00:03:24,399 --> 00:03:27,918 KT: I talk to him. So what can you tell her? 56 00:03:28,119 --> 00:03:29,399 KT: What can you tell Samantha? 57 00:03:29,639 --> 00:03:32,600 Suze: So KT, do you know why she feels like she's 58 00:03:32,600 --> 00:03:34,549 Suze: learning the alphabet all over again? 59 00:03:34,880 --> 00:03:37,309 KT: Yeah, because she doesn't know what's in her policy. 60 00:03:37,479 --> 00:03:40,490 Suze: But why the alphabet? Why'd she call it the alphabet? 61 00:03:40,880 --> 00:03:42,309 Suze: You don't know either, do you? 62 00:03:42,440 --> 00:03:43,300 KT: ABC. 63 00:03:43,479 --> 00:03:44,919 Suze: ABC. What's ABC? 64 00:03:46,100 --> 00:03:47,449 KT: A B C D. 65 00:03:48,380 --> 00:03:51,139 Suze: Don't fake it with me, Travis. Don't fake it with me. 66 00:03:51,240 --> 00:03:55,860 Suze: I know when you don't know. And that was your quizzy. Anyway, 67 00:03:56,020 --> 00:03:59,570 Suze: you should see her face. Everybody listen to me. 68 00:04:00,339 --> 00:04:05,490 Suze: It's important that you know how to read your policies, 69 00:04:05,779 --> 00:04:09,860 Suze: and they have different coverages, and they actually call those 70 00:04:09,860 --> 00:04:15,880 Suze: coverages KT coverage A, coverage B, coverage C, coverage D, 71 00:04:15,979 --> 00:04:20,260 Suze: coverage E, coverage F, and so forth. All right. The 72 00:04:20,260 --> 00:04:25,820 Suze: most important of all your coverages, everybody, is coverage A. 73 00:04:26,380 --> 00:04:31,130 Suze: And that's known as the dwelling coverage. How much is 74 00:04:31,130 --> 00:04:34,808 Suze: your structure to your home worth, and that will include 75 00:04:34,809 --> 00:04:38,649 Suze: everything the walls, the roofs, the foundations, the built-in appliances, 76 00:04:38,850 --> 00:04:43,010 Suze: all of those things. And coverage A is what is 77 00:04:43,010 --> 00:04:49,049 Suze: covering fire, windstorm, hail, and those types of perils, and 78 00:04:49,049 --> 00:04:53,250 Suze: a peril is what's happening right now. The fire is a peril. 79 00:04:53,709 --> 00:04:56,868 Suze: However, you have to know that many of the other 80 00:04:56,869 --> 00:05:03,500 Suze: coverages everybody is based on what coverage A happens to be. 81 00:05:03,709 --> 00:05:08,149 Suze: So if you have an amount of coverage A, then 82 00:05:08,149 --> 00:05:12,700 Suze: possibly your other coverages will be a percentage of what 83 00:05:12,700 --> 00:05:16,630 Suze: that amount happens to be. Also, just know. 84 00:05:17,049 --> 00:05:21,279 Suze: That the limits for coverage, they're really based on the 85 00:05:21,279 --> 00:05:25,959 Suze: rebuild of your home, not what the market value happens 86 00:05:25,959 --> 00:05:28,750 Suze: to be, just so you know. Next, 87 00:05:29,339 --> 00:05:34,469 Suze: Coverage B is other structures and coverages, which means all right, 88 00:05:34,500 --> 00:05:39,089 Suze: let's say you have something that's not attached to your home, 89 00:05:39,260 --> 00:05:39,910 KT: Like a garage. 90 00:05:40,059 --> 00:05:42,779 Suze: Like a garage possibly, but it has to be a 91 00:05:42,779 --> 00:05:46,419 Suze: detached garage. Maybe it's a fence or a shed or 92 00:05:46,420 --> 00:05:51,589 Suze: your gazebo or things like that and usually everybody coverage 93 00:05:51,589 --> 00:05:57,709 Suze: B is limited to 10% of the dwelling coverage amount. 94 00:05:58,079 --> 00:06:01,618 Suze: So I want everybody to understand this KT. So if 95 00:06:01,619 --> 00:06:06,010 Suze: coverage A, just let's say, is a million dollars, just 96 00:06:06,010 --> 00:06:10,519 Suze: let's say that's true, then the other structures on your 97 00:06:10,519 --> 00:06:14,910 Suze: property might be limited to 10% of coverage A, which 98 00:06:14,910 --> 00:06:18,269 Suze: would be just $100,000. 99 00:06:18,799 --> 00:06:23,230 Suze: So you need to take all of that into consideration, Samantha, 100 00:06:23,459 --> 00:06:27,859 Suze: when you are looking at your policies. The other most 101 00:06:27,859 --> 00:06:32,700 Suze: important one really, KT is coverage C, which is personal 102 00:06:32,700 --> 00:06:34,029 Suze: property coverage. 103 00:06:34,690 --> 00:06:37,609 Suze: That's what covers your loss of your clothes, your furniture, 104 00:06:37,730 --> 00:06:42,049 Suze: your electronics, all those kinds of things, even appliances in 105 00:06:42,049 --> 00:06:43,450 Suze: certain circumstances... 106 00:06:43,570 --> 00:06:44,350 KT: Artwork, things like that. 107 00:06:44,450 --> 00:06:48,609 Suze: Well, no, not artwork, right, but personal property. Now you 108 00:06:48,609 --> 00:06:51,808 Suze: could have other things that would cover your artwork, but 109 00:06:51,809 --> 00:06:55,660 Suze: usually in personal property coverage it's not artwork. 110 00:06:56,140 --> 00:06:59,690 Suze: However, though high value items such as art KT for 111 00:06:59,690 --> 00:07:02,799 Suze: instance that you just said or your jewelry or collect 112 00:07:02,799 --> 00:07:05,029 Suze: or or collect... 113 00:07:05,720 --> 00:07:06,640 KT: Collectibles 114 00:07:06,640 --> 00:07:09,019 Suze: Or thank you KT, say it again for me. 115 00:07:09,269 --> 00:07:09,829 KT: Collectibles. 116 00:07:10,019 --> 00:07:14,480 Suze: Oh, see why I need her, everybody may have sub-limits 117 00:07:15,019 --> 00:07:17,640 Suze: just so you know, maybe have less where they're they're 118 00:07:17,640 --> 00:07:20,989 Suze: not insured as much unless they're scheduled separately. 119 00:07:21,170 --> 00:07:23,019 KT: All right, so wait, wait, wait, so let me just 120 00:07:23,019 --> 00:07:23,660 KT: ask one. 121 00:07:24,000 --> 00:07:24,929 KT: So if... 122 00:07:24,929 --> 00:07:28,989 Suze: Now there's one more that's really important. There really is 123 00:07:29,369 --> 00:07:33,779 Suze: that everybody really does need to know, and there's actually 124 00:07:33,779 --> 00:07:37,049 Suze: 3 or 4 more, but the next one, the fourth one. 125 00:07:37,670 --> 00:07:40,019 Suze: And this is what's going to come into play for 126 00:07:40,019 --> 00:07:45,209 Suze: most people right now, KT is loss of use or 127 00:07:45,209 --> 00:07:52,750 Suze: additional living expenses, and that's known really as coverage D. 128 00:07:52,869 --> 00:07:55,859 Suze: And what that covers, which is what all of you 129 00:07:55,859 --> 00:07:59,100 Suze: need to make sure that you have in your policy. 130 00:07:59,609 --> 00:08:02,720 Suze: Is the expenses that you're going to incur when you 131 00:08:02,720 --> 00:08:06,160 Suze: can't live in your home anymore due to the coverage 132 00:08:06,160 --> 00:08:09,609 Suze: damage such as this fire that's happening, so it will 133 00:08:09,609 --> 00:08:13,429 Suze: cover things for you such as your hotel bills, your meals, 134 00:08:13,480 --> 00:08:17,549 Suze: your transportation, but you have to know that it's limited 135 00:08:17,549 --> 00:08:23,109 Suze: to 20 to 30% of the dwelling coverage again. So 136 00:08:23,109 --> 00:08:26,350 Suze: do you understand everybody how it always goes back to 137 00:08:26,350 --> 00:08:27,239 Suze: coverage A? 138 00:08:27,839 --> 00:08:31,880 Suze: If you are listed as a million dollars for your home, 139 00:08:32,369 --> 00:08:35,520 Suze: then the most you're going to get in additional living 140 00:08:35,520 --> 00:08:41,729 Suze: expenses coverage D will be 200 to $300,000 which is 141 00:08:41,729 --> 00:08:46,369 Suze: 20 to 30% of coverage A. Just briefly, everybody, and 142 00:08:46,369 --> 00:08:49,760 Suze: you need to have your Suze notebooks out for this. KT, 143 00:08:49,830 --> 00:08:53,010 Suze: I wasn't expecting such a detailed question to begin this 144 00:08:53,010 --> 00:08:55,127 Suze: whole thing, but you just, you just set me up 145 00:08:55,127 --> 00:08:55,129 Suze: didn't you? 146 00:08:56,289 --> 00:08:58,979 KT: I didn't know either. No, I'm clueless as well. 147 00:08:59,210 --> 00:09:03,039 Suze: All right, so besides coverage D, just briefly, there's coverage E, 148 00:09:03,330 --> 00:09:07,728 Suze: which is personal liability coverage. So if somebody's injured on 149 00:09:07,729 --> 00:09:12,450 Suze: your property, coverage F is medical payments to others. But 150 00:09:12,450 --> 00:09:15,840 Suze: here's what's important for everybody, especially right now in LA, 151 00:09:15,849 --> 00:09:18,130 Suze: or that when they suffer a loss like this. 152 00:09:18,890 --> 00:09:24,770 Suze: Part of your policy, everybody has endorsements, and there's one 153 00:09:24,770 --> 00:09:29,848 Suze: for debris removal, very, very important. Are you seeing all 154 00:09:29,849 --> 00:09:33,729 Suze: of those videos and TV coverage of all the debris? 155 00:09:33,739 --> 00:09:37,728 Suze: It's going to take them 9 months to clean up 156 00:09:37,729 --> 00:09:42,250 Suze: all of the debris that the fire left. So you 157 00:09:42,250 --> 00:09:45,419 Suze: have to know that you have debris removal. You have, 158 00:09:45,489 --> 00:09:47,409 Suze: let me think what else there would be. You'd need 159 00:09:47,409 --> 00:09:48,210 Suze: tree and shrub 160 00:09:48,729 --> 00:09:52,929 Suze: damage is it going to cover your policy, the damage 161 00:09:52,929 --> 00:09:56,849 Suze: for your trees and your shrubs, and what about building 162 00:09:56,849 --> 00:10:01,929 Suze: code upgrades? Remember these people now KT in LA, they're 163 00:10:01,929 --> 00:10:05,650 Suze: probably gonna have to rebuild, but when they rebuild, the 164 00:10:05,650 --> 00:10:09,489 Suze: ordinances are gonna be, you have to be even more strict. 165 00:10:09,770 --> 00:10:12,760 Suze: You have to build with special materials and things like that, 166 00:10:12,960 --> 00:10:16,760 Suze: and that may bring up the cost of their current 167 00:10:16,760 --> 00:10:22,119 Suze: building during those repairs. So does your policy cover that 168 00:10:22,119 --> 00:10:26,909 Suze: food spoilage, identity theft protection, and all of those things 169 00:10:27,119 --> 00:10:29,719 Suze: you really have to know, however, what 170 00:10:29,960 --> 00:10:37,479 Suze: your policy excludes, and most policies exclude flooding, earthquakes, mold, 171 00:10:37,700 --> 00:10:41,359 Suze: and neglect things like that. So those are just a 172 00:10:41,359 --> 00:10:44,478 Suze: few things that answer this 173 00:10:44,479 --> 00:10:45,190 Suze: question. 174 00:10:45,440 --> 00:10:49,710 KT: So Suze, what's the one thing Samantha should be looking for? 175 00:10:50,270 --> 00:10:50,718 Suze: Well... 176 00:10:50,890 --> 00:10:54,330 KT: The just one thing in her policy before she speaks 177 00:10:54,330 --> 00:10:55,200 KT: to the agent. 178 00:10:55,429 --> 00:10:58,700 Suze: So Samantha, now that we did the entire podcast just 179 00:10:58,700 --> 00:11:02,450 Suze: on your question, maybe we'll go longer today, but I 180 00:11:02,450 --> 00:11:05,969 Suze: wanted to be thorough that all of you knew how 181 00:11:05,969 --> 00:11:09,530 Suze: your policies are created for you and what you should 182 00:11:09,530 --> 00:11:14,250 Suze: know about them is that KT, there are two ways 183 00:11:14,250 --> 00:11:17,159 Suze: for coverage A her dwelling coverage. 184 00:11:17,989 --> 00:11:23,709 Suze: And is it going to be replacement value or an 185 00:11:23,710 --> 00:11:26,780 Suze: accrued cash value policy? 186 00:11:26,950 --> 00:11:27,849 KT: Who gets to choose? 187 00:11:28,109 --> 00:11:31,789 Suze: She does. A replacement value means that they are going 188 00:11:31,789 --> 00:11:35,349 Suze: to replace it for whatever it costs for her to 189 00:11:35,349 --> 00:11:36,750 Suze: rebuild it. 190 00:11:37,409 --> 00:11:41,640 Suze: The actual cash value is they're not going to pay 191 00:11:41,640 --> 00:11:44,199 Suze: you for what it costs you to rebuild it. They're 192 00:11:44,200 --> 00:11:48,320 Suze: going to take whatever your value was, depreciate it. Let's 193 00:11:48,320 --> 00:11:51,479 Suze: say it was a million dollar home that you bought 194 00:11:51,479 --> 00:11:54,719 Suze: years ago, maybe now the actual cash value, they're only 195 00:11:54,719 --> 00:11:59,039 Suze: going to give you a $600,000. Remember, everybody, they're not 196 00:11:59,039 --> 00:12:01,830 Suze: going to pay you the market value of your home, 197 00:12:01,979 --> 00:12:03,039 Suze: what it was worth. 198 00:12:03,440 --> 00:12:07,239 Suze: Usually your insurance policy is based on what it would 199 00:12:07,239 --> 00:12:11,590 Suze: cost to rebuild, and if you only have actual cash value, 200 00:12:11,799 --> 00:12:15,239 Suze: you're only going to get that amount minus depreciation of 201 00:12:15,239 --> 00:12:17,359 Suze: what you, how long you owned it. 202 00:12:17,429 --> 00:12:18,880 KT: It's not very fair, is it? 203 00:12:19,280 --> 00:12:21,880 Suze: It's fair because you can get replacement value. It's just 204 00:12:21,880 --> 00:12:26,169 Suze: gonna cost you more. So the most important thing, Samantha, 205 00:12:26,359 --> 00:12:28,478 Suze: I would be looking at if I were you. 206 00:12:28,820 --> 00:12:35,450 Suze: I would have a replacement value policy number one and 207 00:12:35,450 --> 00:12:39,440 Suze: I would make sure that I had building code upgrades 208 00:12:39,809 --> 00:12:41,130 Suze: that go along with it. 209 00:12:41,809 --> 00:12:44,289 Suze: Because if you need to rebuild, you're in the fire 210 00:12:44,289 --> 00:12:47,569 Suze: and the upgrades are more expensive, you need to know 211 00:12:47,570 --> 00:12:49,530 Suze: that your insurance company will pay for 212 00:12:49,530 --> 00:12:49,919 Suze: it. 213 00:12:50,250 --> 00:12:52,690 KT: All right, so this next one confused me a little 214 00:12:52,690 --> 00:12:55,729 KT: because I never heard of it before. It's from Josh. 215 00:12:55,770 --> 00:12:59,478 KT: He said, Suze, I live in San Diego. I tried 216 00:12:59,479 --> 00:13:02,330 KT: everywhere to get insurance and no one will 217 00:13:02,479 --> 00:13:06,340 KT: insure me. My mortgage company told me to apply for 218 00:13:06,340 --> 00:13:11,739 KT: FAIR Insurance, FAIR, so I was just curious, is that 219 00:13:11,739 --> 00:13:14,459 KT: a company or is it a kind of insurance? 220 00:13:14,469 --> 00:13:14,700 Suze: It's a, 221 00:13:14,820 --> 00:13:16,289 Suze: it's a, 222 00:13:16,419 --> 00:13:18,880 KT: it said, can you tell me what is the max 223 00:13:18,880 --> 00:13:23,169 KT: FAIR will insure my home for if it's worth $2 million. 224 00:13:23,659 --> 00:13:26,880 Suze: So great question. First of all, fair, I can't say it. 225 00:13:26,880 --> 00:13:27,869 KT: Say fair. 226 00:13:27,880 --> 00:13:28,429 Suze: Fair. 227 00:13:28,559 --> 00:13:29,320 KT: Yeah, that's it. 228 00:13:29,789 --> 00:13:30,169 Suze: Not - don't say "fear" say "fair" 229 00:13:30,679 --> 00:13:31,390 KT: Fair, 230 00:13:31,440 --> 00:13:32,150 Suze: Fair, 231 00:13:32,349 --> 00:13:37,429 KT: fair. OK, good. So she has a speech impediment, everyone, 232 00:13:37,679 --> 00:13:41,349 KT: and when she says fair, it comes out fear. 233 00:13:41,599 --> 00:13:43,200 Suze: Yeah, I don't want to be fear now. I want 234 00:13:43,200 --> 00:13:48,400 Suze: to be fair, yes, fair, fair. OK, so FAIR stands 235 00:13:48,400 --> 00:13:52,080 Suze: for California FAIR plan. 236 00:13:52,669 --> 00:13:56,500 Suze: It's the California's plan, and many states have this, by 237 00:13:56,500 --> 00:13:57,479 Suze: the way, KT. 238 00:13:57,820 --> 00:13:58,419 KT: All called FAIR? 239 00:13:58,599 --> 00:13:59,718 Suze: Yes, but... 240 00:14:01,799 --> 00:14:05,070 Suze: Oh, here we go. Here she goes. 241 00:14:06,000 --> 00:14:06,960 KT: It's not funny. 242 00:14:07,280 --> 00:14:08,309 Suze: So why are you laughing? 243 00:14:08,599 --> 00:14:08,840 Suze: Because 244 00:14:08,840 --> 00:14:09,080 KT: you 245 00:14:09,080 --> 00:14:09,440 KT: can't 246 00:14:09,440 --> 00:14:12,229 KT: say it. It's not funny. OK, so many 247 00:14:12,229 --> 00:14:12,789 KT: states have FAIR. 248 00:14:13,309 --> 00:14:15,280 Suze: Yeah, but I can't say it, but I sure know 249 00:14:15,280 --> 00:14:15,929 Suze: what it is. 250 00:14:16,479 --> 00:14:18,789 Suze: And would I rather know what it is than be 251 00:14:18,789 --> 00:14:19,549 Suze: able to say it? 252 00:14:20,070 --> 00:14:21,260 KT: Tell us what does it mean. 253 00:14:21,469 --> 00:14:29,039 Suze: It means fair access to insurance requirements. Now what's interesting 254 00:14:29,039 --> 00:14:32,669 Suze: is that many of the insurance companies, and you all 255 00:14:32,669 --> 00:14:36,710 Suze: know this, have actually left California. 256 00:14:37,140 --> 00:14:40,890 Suze: They're not insuring you anymore, especially if you live in 257 00:14:40,890 --> 00:14:45,719 Suze: a wildfire area or whatever it may be. In Florida 258 00:14:45,719 --> 00:14:49,119 Suze: they have pulled out of Florida if you live near 259 00:14:49,119 --> 00:14:52,250 Suze: a flood zone or if you're in a hurricane area 260 00:14:52,250 --> 00:14:57,599 Suze: like KT and myself. Again, I use this as an example. 261 00:14:57,809 --> 00:15:01,690 Suze: We have a 2100 square foot condo on the ocean 262 00:15:01,690 --> 00:15:03,570 Suze: that's not that big, everybody. 263 00:15:04,299 --> 00:15:10,770 Suze: Our insurance is $28,000 because we're on the second floor. 264 00:15:11,549 --> 00:15:15,500 Suze: $28,000 a year. Are you kidding me? 265 00:15:16,140 --> 00:15:17,179 KT: What What if we were on the first floor? 266 00:15:17,179 --> 00:15:22,530 Suze: It would be probably $35,000 a year, uh huh, crazy, crazy, right? 267 00:15:22,820 --> 00:15:27,659 Suze: Absolutely nuts anyway. So this happened many, many years ago 268 00:15:27,659 --> 00:15:30,380 Suze: as insurance companies started to pull out. 269 00:15:31,049 --> 00:15:35,729 Suze: Where the states all got together and this fair plan 270 00:15:36,260 --> 00:15:40,729 Suze: serves as the state's insurer what they call of last resort. 271 00:15:41,450 --> 00:15:46,690 Suze: Providing basic property insurance to homeowners, so providing that you 272 00:15:46,690 --> 00:15:53,000 Suze: cannot get insurance to your home through any other insurance company, 273 00:15:53,169 --> 00:15:55,409 Suze: you know this was established KT all the way back 274 00:15:55,409 --> 00:15:59,039 Suze: in 1968 if I'm not wrong, and it's a pool 275 00:15:59,039 --> 00:16:01,330 Suze: of insurers that get together. 276 00:16:01,799 --> 00:16:04,900 Suze: And then they're allowed to resell it. It's this whole thing. 277 00:16:05,109 --> 00:16:09,469 Suze: But anyway, when you cannot get an insurance policy through 278 00:16:09,469 --> 00:16:13,580 Suze: any legitimate insurance company, if there is such a thing, 279 00:16:14,150 --> 00:16:17,140 Suze: I'm sorry to say, but if you can't. 280 00:16:17,830 --> 00:16:21,630 Suze: Then you have to go to the FAIR group and 281 00:16:21,630 --> 00:16:24,469 Suze: then you're in a pool of all insurers. What was 282 00:16:24,469 --> 00:16:27,710 Suze: his question about the $2 million his house is worth? 283 00:16:27,750 --> 00:16:28,109 Suze: How much? 284 00:16:28,750 --> 00:16:31,390 KT: It said, can you tell me what is the max FAIR 285 00:16:31,390 --> 00:16:34,710 KT: will insure my home for if it's worth 2 million 286 00:16:34,710 --> 00:16:34,859 KT: dollars? 287 00:16:34,869 --> 00:16:38,510 Suze: They will insure you, right, but the maximum they will 288 00:16:38,510 --> 00:16:42,780 Suze: insure is for $3 million. Now you all have to 289 00:16:42,780 --> 00:16:45,229 Suze: remember with this kind of insurance, the 290 00:16:45,349 --> 00:16:50,619 Suze: premiums are extremely expensive. The insurance is not that good. 291 00:16:50,799 --> 00:16:53,070 Suze: Remember just a little bit ago I talked about additional 292 00:16:53,070 --> 00:17:00,380 Suze: living expenses. Normally this insurance does not cover additional living expenses. 293 00:17:00,539 --> 00:17:04,010 Suze: I think some of the policies depending on the state 294 00:17:04,010 --> 00:17:07,500 Suze: will allow you to purchase additional living expenses, but it 295 00:17:07,500 --> 00:17:10,300 Suze: doesn't automatically come with 296 00:17:10,300 --> 00:17:10,810 Suze: it. 297 00:17:11,060 --> 00:17:12,979 KT: So you're almost forced to... 298 00:17:13,920 --> 00:17:17,589 KT: You know, abide by their rules and regulations. FAIR is 299 00:17:17,589 --> 00:17:18,469 KT: your last resort. 300 00:17:18,670 --> 00:17:18,949 Suze: Which is 301 00:17:18,949 --> 00:17:20,750 Suze: why it's kind of funny that that's what it's called FAIR, 302 00:17:21,150 --> 00:17:23,709 Suze: I know, but you need to know, listen, at the 303 00:17:23,709 --> 00:17:24,900 Suze: beginning of this year. 304 00:17:25,819 --> 00:17:33,250 Suze: In 2025, the FAIR insurance in California had already insured 305 00:17:33,250 --> 00:17:40,250 Suze: $6 billion of exposure in the Pacific Palisades alone, and 306 00:17:40,250 --> 00:17:44,510 Suze: so it may be possible that their potential losses there 307 00:17:44,770 --> 00:17:47,609 Suze: can be as high as $24 billion so. 308 00:17:48,079 --> 00:17:51,800 Suze: It's just kind of interesting, but if it's all you 309 00:17:51,800 --> 00:17:54,280 Suze: can get, you need to get it, you know, I 310 00:17:54,280 --> 00:17:59,199 Suze: was listening the other day to the TV and Governor Newsom, 311 00:17:59,319 --> 00:18:03,599 Suze: his dad had to get insurance with FAIR and even 312 00:18:03,599 --> 00:18:05,229 Suze: he said on the air. 313 00:18:05,494 --> 00:18:08,925 Suze: It's expensive and not that good, but it's the insurance 314 00:18:08,925 --> 00:18:10,524 Suze: of last resort. All right. 315 00:18:10,525 --> 00:18:11,584 KT: It's your only chance. 316 00:18:11,785 --> 00:18:14,364 Suze: I just have to then add one thing to the 317 00:18:14,364 --> 00:18:19,885 Suze: FAIR question. If they won't automatically give you ALE, which 318 00:18:19,885 --> 00:18:25,714 Suze: is additional living expenses, which you need, then on your own, everybody, 319 00:18:26,204 --> 00:18:30,204 Suze: you can purchase what's called a DIC policy. 320 00:18:30,829 --> 00:18:33,629 Suze: Make my head explode. All right, KT, which is a 321 00:18:33,630 --> 00:18:39,280 Suze: difference in conditions policy which will include ALE coverage. 322 00:18:39,349 --> 00:18:40,349 KT: Where do you get that? 323 00:18:40,449 --> 00:18:43,699 Suze: Well, you would get that through a regular insurance company, 324 00:18:43,739 --> 00:18:44,739 Suze: and there you go. 325 00:18:44,949 --> 00:18:47,939 KT: All right, it's so confusing. All right, let's go to Maxine. 326 00:18:48,069 --> 00:18:50,699 KT: My mom, who is in her early 90s, lost her 327 00:18:50,699 --> 00:18:53,910 KT: home in the fire. She bought it about 50 years 328 00:18:53,910 --> 00:18:56,550 KT: ago and is the only home she's known. 329 00:18:57,020 --> 00:18:59,760 KT: So she said she has listened to you for years 330 00:18:59,760 --> 00:19:03,160 KT: and learned from the Suze Orman show to properly insure 331 00:19:03,160 --> 00:19:05,869 KT: her home, and she followed your advice to the T. 332 00:19:06,719 --> 00:19:10,880 KT: So we are covered there. However, she asked me to 333 00:19:10,880 --> 00:19:15,400 KT: ask you if she rebuilds her home, will she still 334 00:19:15,400 --> 00:19:19,280 KT: be under Prop 13? I thought this was a great question, everybody, 335 00:19:19,400 --> 00:19:20,390 KT: let me, let me finish. 336 00:19:20,713 --> 00:19:24,203 KT: She said she saw on TV how one person lost 337 00:19:24,203 --> 00:19:26,402 KT: their home in the neighborhood and said that all the 338 00:19:26,402 --> 00:19:31,192 KT: property taxes and insurance will be going up after the rebuild. 339 00:19:31,483 --> 00:19:34,802 KT: So now she's so upset that she may lose her 340 00:19:34,802 --> 00:19:39,042 KT: Prop 13 advantages, and that's why she was able to 341 00:19:39,042 --> 00:19:41,963 KT: stay in the house. What can she do, Suze? You're 342 00:19:41,963 --> 00:19:44,052 KT: the only one she'll listen to. Oh. 343 00:19:44,965 --> 00:19:48,844 KT: 90s. She's in her 90s. So first, tell everyone what 344 00:19:48,845 --> 00:19:54,166 KT: is Prop 13. Just briefly, they never heard of it. 345 00:19:54,286 --> 00:19:55,865 Suze: How do you know I know? I know because my 346 00:19:55,865 --> 00:20:00,885 Suze: house is covered in 1975 to be exact, because I 347 00:20:00,885 --> 00:20:05,244 Suze: owned a home in California at the time. Proposition 13 348 00:20:05,244 --> 00:20:07,645 Suze: was passed which stated. 349 00:20:08,119 --> 00:20:11,949 Suze: That you would only have to pay 1% of the 350 00:20:11,949 --> 00:20:15,629 Suze: value for property taxes, and it could never go up 351 00:20:15,630 --> 00:20:20,550 Suze: more than 2% a year based on that figure. That's 352 00:20:20,550 --> 00:20:23,719 Suze: what Prop 13 is. Maxine, 353 00:20:24,650 --> 00:20:27,430 Suze: I have to tell you, I heard that same person 354 00:20:27,430 --> 00:20:30,790 Suze: that you did say that and I was like taking 355 00:20:30,790 --> 00:20:32,719 Suze: my hands and I was doing this with it. What 356 00:20:32,719 --> 00:20:33,310 Suze: was this KT? 357 00:20:33,390 --> 00:20:34,310 KT: She's she's holding her head shaking it. 358 00:20:35,229 --> 00:20:39,030 Suze: I'm like, no, don't tell these people that they're going 359 00:20:39,030 --> 00:20:42,140 Suze: to be worrying and obviously Maxine, you saw it as 360 00:20:42,140 --> 00:20:43,349 Suze: well as I did. 361 00:20:43,430 --> 00:20:43,939 KT: Her mom saw it. 362 00:20:44,310 --> 00:20:48,300 Suze: Now first you have to know if you rebuild your home, 363 00:20:48,469 --> 00:20:53,069 Suze: listen to me closely, Maxine. If you rebuild your home. 364 00:20:53,729 --> 00:20:55,849 Suze: On the same property. 365 00:20:56,479 --> 00:21:00,150 Suze: And due to the damage that happened by a natural disaster, 366 00:21:00,189 --> 00:21:05,619 Suze: which it has, California law will allow you to retain 367 00:21:05,920 --> 00:21:09,949 Suze: your original Prop 13 tax basis. 368 00:21:11,400 --> 00:21:13,469 KT: So now her mom's gonna be really happy. 369 00:21:13,550 --> 00:21:19,500 Suze: However, you cannot rebuild your property and make it substantially bigger. 370 00:21:20,199 --> 00:21:23,459 Suze: It's got to be equivalent in size. 371 00:21:23,790 --> 00:21:24,579 KT: Keep the footprint. 372 00:21:25,030 --> 00:21:29,910 Suze: So keep your footprint. However, listen to me, Maxine, if 373 00:21:29,910 --> 00:21:35,750 Suze: you decide not to rebuild on the same property because 374 00:21:35,750 --> 00:21:39,069 Suze: everything has been destroyed around you and what are you 375 00:21:39,069 --> 00:21:41,910 Suze: gonna do there? There are no utilities, there's nothing and 376 00:21:41,910 --> 00:21:46,069 Suze: you decide not to rebuild there and you decide you 377 00:21:46,069 --> 00:21:49,060 Suze: want to buy a replacement home elsewhere. 378 00:21:49,670 --> 00:21:55,150 Suze: You can also transfer Prop 13 tax bases to your 379 00:21:55,150 --> 00:22:01,629 Suze: new property under what's called Prop 18, but you must 380 00:22:01,630 --> 00:22:06,109 Suze: build or replace your home within 2 years of the 381 00:22:06,109 --> 00:22:08,719 Suze: loss of your original home. 382 00:22:09,339 --> 00:22:12,968 Suze: So just remember I said that and your new home 383 00:22:12,969 --> 00:22:17,410 Suze: must be of equal or lesser value just so you know. 384 00:22:17,410 --> 00:22:19,229 KT: But it can be elsewhere, correct? 385 00:22:19,680 --> 00:22:20,410 Suze: It can be elsewhere. 386 00:22:20,550 --> 00:22:21,359 KT: All right, that's important, 387 00:22:21,489 --> 00:22:23,099 Suze: But that's under Prop 19. 388 00:22:23,329 --> 00:22:23,679 KT: All right... 389 00:22:23,930 --> 00:22:28,280 Suze: Which replaced Prop 60 and 90 in 2021, but 390 00:22:28,650 --> 00:22:30,229 Suze: you don't care about that, do you? 391 00:22:30,560 --> 00:22:30,679 KT: No, 392 00:22:30,760 --> 00:22:33,560 KT: no, no, but let me finish asking one more question 393 00:22:33,560 --> 00:22:36,349 KT: about this. What about someone that had a huge home 394 00:22:36,349 --> 00:22:41,160 KT: and they paid $100 or even $200,000 a year in 395 00:22:41,160 --> 00:22:45,030 KT: property taxes and now their home's gone? What do they do? 396 00:22:45,319 --> 00:22:49,400 KT: And do they get refunds on the what taxes they've 397 00:22:49,400 --> 00:22:49,760 KT: already 398 00:22:49,760 --> 00:22:50,079 KT: paid? 399 00:22:50,260 --> 00:22:50,949 Suze: Yeah, remember. 400 00:22:51,050 --> 00:22:52,900 KT: So what happens there? 401 00:22:52,900 --> 00:22:58,199 Suze: Is that when your house has totally burnt down everybody. 402 00:22:58,880 --> 00:23:03,800 Suze: You still have to pay property tax on the land. 403 00:23:04,199 --> 00:23:07,550 Suze: Listen to me closely now. The house is no longer there. 404 00:23:08,119 --> 00:23:11,359 Suze: So if this person was paying $200,000 a year in 405 00:23:11,359 --> 00:23:17,948 Suze: property tax, which is absolutely possible in California, they no 406 00:23:17,949 --> 00:23:20,719 Suze: longer have to pay it on the home because the 407 00:23:20,719 --> 00:23:22,109 Suze: home isn't there. 408 00:23:22,560 --> 00:23:27,750 Suze: So you should all apply to what's called the misfortune 409 00:23:27,750 --> 00:23:31,949 Suze: or calamity program, and you have to look that up. 410 00:23:32,239 --> 00:23:34,478 Suze: I think you can find it by the way, if 411 00:23:34,479 --> 00:23:38,079 Suze: you go to the assessor's office at your LA what 412 00:23:38,079 --> 00:23:45,040 Suze: would it be logically it would be assessor.lacounty.gov. That's probably 413 00:23:45,040 --> 00:23:46,079 Suze: where it's at. 414 00:23:46,560 --> 00:23:50,688 Suze: And you could apply there for your property taxes to 415 00:23:50,689 --> 00:23:55,729 Suze: be deferred without any penalty or interest number one and 416 00:23:55,729 --> 00:23:59,489 Suze: just know that there will be an adjustment. Now you 417 00:23:59,489 --> 00:24:03,959 Suze: have to understand that you're going to have some adjustment 418 00:24:03,959 --> 00:24:05,129 Suze: the value of the land 419 00:24:05,255 --> 00:24:07,724 Suze: may be worth something, so you might have to pay 420 00:24:07,724 --> 00:24:10,444 Suze: property taxes just on that, but if you do what 421 00:24:10,444 --> 00:24:13,755 Suze: I just told you, it is probable that they will 422 00:24:13,755 --> 00:24:18,795 Suze: defer all of your taxes until everything settles down. 423 00:24:19,244 --> 00:24:22,524 KT: But let me ask another question. I'm just curious if 424 00:24:22,525 --> 00:24:23,925 KT: you already paid 425 00:24:24,560 --> 00:24:28,630 KT: your taxes, your house burns down, and you still have 426 00:24:28,630 --> 00:24:31,349 KT: taxes on the land, you get a refund. 427 00:24:31,589 --> 00:24:35,670 Suze: So if you already prepaid your taxes, KT and I 428 00:24:35,670 --> 00:24:39,198 Suze: prepay our taxes, and usually if you prepay your taxes 429 00:24:39,199 --> 00:24:43,219 Suze: for the year, you get like a 10% or something discount. 430 00:24:43,550 --> 00:24:47,479 Suze: If you have already paid your taxes, let's say $200,000 431 00:24:47,670 --> 00:24:50,709 Suze: they will refund it to you even if you pay 432 00:24:50,709 --> 00:24:52,270 Suze: it month by month. 433 00:24:52,800 --> 00:24:57,050 Suze: If you paid it for January already, they will refund 434 00:24:57,050 --> 00:25:01,369 Suze: your property taxes for you. But even if you still 435 00:25:01,369 --> 00:25:06,800 Suze: owe what you will, property taxes on your land that's empty. 436 00:25:07,290 --> 00:25:11,639 Suze: They will probably defer the property tax on that land 437 00:25:11,869 --> 00:25:16,800 Suze: if you look for the misfortune or calamity program. Just 438 00:25:16,800 --> 00:25:19,099 Suze: that simple. Next, KT. 439 00:25:19,310 --> 00:25:22,589 KT: OK, this is from Gina. She said my twin brother 440 00:25:22,589 --> 00:25:27,550 KT: was staying at an AirBnB. He had to evacuate and 441 00:25:27,550 --> 00:25:31,150 KT: as he was driving his car was stuck in traffic 442 00:25:31,150 --> 00:25:33,030 KT: while everyone was evacuating. 443 00:25:33,369 --> 00:25:35,389 KT: And he had to abandon it. He had to leave 444 00:25:35,390 --> 00:25:37,160 KT: that he's one of these guys who had to leave 445 00:25:37,160 --> 00:25:40,270 KT: the car in the mess there. He got everything out 446 00:25:40,270 --> 00:25:43,919 KT: and totally loaded his car with clothes, everything. 447 00:25:44,270 --> 00:25:46,760 KT: He just found out it was lost to the fire, 448 00:25:46,800 --> 00:25:50,439 KT: so the car is completely destroyed as well. He told 449 00:25:50,439 --> 00:25:54,040 KT: me he only had liability insurance on his car, but 450 00:25:54,040 --> 00:25:56,959 KT: it was a really old car. I told him not 451 00:25:56,959 --> 00:25:59,800 KT: to worry. His insurance will take care of it. So 452 00:25:59,800 --> 00:26:04,260 KT: now Gina is asking Suze, did I tell him correctly? 453 00:26:04,680 --> 00:26:04,858 Suze: (Suze makes the wrong answer sound) 454 00:26:04,858 --> 00:26:05,849 KT: She didn't. 455 00:26:07,040 --> 00:26:11,510 Suze: Now listen, your car insurance for it to take care 456 00:26:11,510 --> 00:26:12,989 Suze: of the car. 457 00:26:13,810 --> 00:26:18,089 Suze: Would have to have comprehensive insurance on it, and that 458 00:26:18,089 --> 00:26:22,640 Suze: would take care of the car and the contents, the contents, 459 00:26:23,469 --> 00:26:27,530 Suze: KT usually are taken care of by your home insurance 460 00:26:27,530 --> 00:26:31,129 Suze: or your renter's insurance. Now I'm not sure if he 461 00:26:31,130 --> 00:26:34,329 Suze: has those things. He might not own a home. I 462 00:26:34,329 --> 00:26:37,329 Suze: don't know, but his car itself, 463 00:26:37,890 --> 00:26:44,579 Suze: it is not insured because liability is not comprehensive, so yeah, 464 00:26:44,790 --> 00:26:49,270 Suze: it's comprehensive that will pay for damages that are caused 465 00:26:49,270 --> 00:26:56,069 Suze: by non-collision events, KT such as fires, floods, thefts, or vandalism. 466 00:26:56,609 --> 00:26:59,889 Suze: Now let's just say if any of you have a 467 00:26:59,890 --> 00:27:03,859 Suze: car that was in your garage or near your home 468 00:27:04,170 --> 00:27:07,448 Suze: and the fire caused damage to both the house and 469 00:27:07,449 --> 00:27:11,729 Suze: the car, your homeowner's insurance would cover the house and 470 00:27:11,729 --> 00:27:17,489 Suze: its contents, excluding the car while your auto would be 471 00:27:17,489 --> 00:27:21,260 Suze: covered by your auto insurance if you have comprehensive. If 472 00:27:21,260 --> 00:27:26,139 Suze: you have something inside the car, that's house insurance. All right, next. 473 00:27:26,869 --> 00:27:28,770 KT: OK, it gets so confusing. 474 00:27:29,030 --> 00:27:29,750 Suze: This is that's 475 00:27:29,750 --> 00:27:31,180 Suze: why this is good. It's a podcast. 476 00:27:31,790 --> 00:27:36,270 KT: So next is from, um, Lila. She said, Suze, who 477 00:27:36,270 --> 00:27:40,790 KT: pays for all the debris removal that's covered by insurance? 478 00:27:41,900 --> 00:27:45,900 Suze: So if it's covered by insurance, all right, if you 479 00:27:45,900 --> 00:27:50,540 Suze: have removal of debris insurance, which I talked about briefly 480 00:27:50,910 --> 00:27:55,989 Suze: with Samantha in our first question, then your insurance policy 481 00:27:55,989 --> 00:28:01,069 Suze: will cover it. If you don't, then you're gonna have 482 00:28:01,069 --> 00:28:04,229 Suze: to pay for it out of your own pocket. 483 00:28:04,739 --> 00:28:07,180 Suze: All right, but you know, KT, I just want to 484 00:28:07,180 --> 00:28:12,890 Suze: tell you something with debris removal is that be very careful, everybody, 485 00:28:12,939 --> 00:28:16,698 Suze: I'll never forget during the Oakland fires when a lot 486 00:28:16,699 --> 00:28:19,099 Suze: of my friend's house turned to ash. 487 00:28:19,500 --> 00:28:22,159 Suze: And they'd be out there and somebody would come up 488 00:28:22,160 --> 00:28:26,290 Suze: and say I can remove all of this debris. It 489 00:28:26,290 --> 00:28:29,780 Suze: will be $1000 or whatever it was going to be 490 00:28:30,089 --> 00:28:32,560 Suze: and if you just pay me directly and then give 491 00:28:32,560 --> 00:28:36,609 Suze: this to the insurance company, they'll cover it and a 492 00:28:36,609 --> 00:28:38,329 Suze: lot of people did that. 493 00:28:38,900 --> 00:28:43,750 Suze: And it wasn't legit, so do not pay any contractor 494 00:28:43,750 --> 00:28:47,800 Suze: or anybody who's offering to do anything unless it is 495 00:28:47,800 --> 00:28:52,520 Suze: cleared by your insurance company. Do you hear me? OK, 496 00:28:52,640 --> 00:28:53,420 Suze: go on KT. 497 00:28:54,579 --> 00:28:59,579 KT: So this one, this one is just called Frustrated. No name, 498 00:28:59,660 --> 00:29:04,099 KT: I just got frustrated. I heard your podcast last Sunday. 499 00:29:04,579 --> 00:29:07,609 KT: And the question I have is, why does the mortgage 500 00:29:07,609 --> 00:29:12,609 KT: company receive my insurance payout? That just isn't right, Suze. 501 00:29:12,849 --> 00:29:16,170 KT: I live in Sonoma, which is an area that has fire, 502 00:29:16,270 --> 00:29:19,050 KT: so how can I make it so that if my 503 00:29:19,050 --> 00:29:22,520 KT: house does burn down, the insurance company pays me? 504 00:29:22,520 --> 00:29:26,329 Suze: Own your house outright. That's the only way. That is 505 00:29:26,329 --> 00:29:27,609 Suze: the only way. 506 00:29:28,694 --> 00:29:33,375 Suze: Because listen to me frustrated, your mortgage company has an 507 00:29:33,375 --> 00:29:37,295 Suze: interest in your property. You're able to own that property 508 00:29:37,295 --> 00:29:40,535 Suze: because they lent you the money to do so, so 509 00:29:40,535 --> 00:29:45,724 Suze: they are one of the first pays on that policy 510 00:29:46,295 --> 00:29:49,854 Suze: because they have a stake in it. It's collateral for 511 00:29:49,854 --> 00:29:50,694 Suze: the loan. 512 00:29:51,060 --> 00:29:55,550 Suze: So to protect their interest, they are required to have 513 00:29:55,550 --> 00:29:58,020 Suze: their name as a loss payee like I just said 514 00:29:58,020 --> 00:30:02,270 Suze: on the insurance policy. Now the lender, the reason it 515 00:30:02,270 --> 00:30:03,430 Suze: goes to them. 516 00:30:03,969 --> 00:30:06,670 Suze: Is that they want to ensure that the insurance money 517 00:30:06,670 --> 00:30:11,560 Suze: is used to either repair or rebuild your property or 518 00:30:11,560 --> 00:30:16,160 Suze: pay down the mortgage balance. So that's why and that's 519 00:30:16,160 --> 00:30:16,880 Suze: how it works. 520 00:30:16,959 --> 00:30:19,599 KT: All right, all right, this next one from Pablo, I 521 00:30:19,599 --> 00:30:22,119 KT: think you already answered, but let's just go through it 522 00:30:22,119 --> 00:30:24,988 KT: one more time for those of us that forgot. 523 00:30:26,060 --> 00:30:30,099 KT: Pablo said, Suze, my aunt has FAIR insurance plan and 524 00:30:30,099 --> 00:30:33,339 KT: lost her home. Does she have to rebuild on the 525 00:30:33,339 --> 00:30:35,660 KT: same lot, same footprint, right? 526 00:30:35,739 --> 00:30:39,900 Suze: No, under the California Fair plan, you're not required to 527 00:30:39,900 --> 00:30:43,609 Suze: rebuild on the same lot if your home is destroyed. However, 528 00:30:44,020 --> 00:30:48,780 Suze: make sure your aunt checks her policy because it's really 529 00:30:48,780 --> 00:30:51,609 Suze: dependent on what she signed up for and what she 530 00:30:51,609 --> 00:30:53,060 Suze: is covered for. 531 00:30:53,339 --> 00:30:57,719 Suze: And what restrictions may be imposed by her mortgage lender. 532 00:30:57,810 --> 00:30:58,969 Suze: All right, next, KT. 533 00:30:59,189 --> 00:30:59,310 KT: All right, 534 00:30:59,369 --> 00:31:02,880 KT: so Suze, so JJ wants to know, do we have 535 00:31:02,880 --> 00:31:07,839 KT: to continue to pay our insurance policy premiums and utilities 536 00:31:08,170 --> 00:31:11,089 KT: even if our house is destroyed or gone? 537 00:31:11,579 --> 00:31:15,849 KT: I also have outstanding bills I owe for cable, internet, etc. 538 00:31:16,459 --> 00:31:19,380 KT: Any advice on if I have to pay them, like 539 00:31:19,380 --> 00:31:20,290 KT: what does he do? 540 00:31:20,420 --> 00:31:22,810 Suze: Yeah, so the very first thing you all need to 541 00:31:22,810 --> 00:31:27,579 Suze: understand is that you have to keep paying your insurance policy. 542 00:31:28,050 --> 00:31:31,160 Suze: And the reason that is, is that they're the ones 543 00:31:31,160 --> 00:31:36,160 Suze: who are covering you for this loss. If you stop 544 00:31:36,160 --> 00:31:40,109 Suze: paying them, then your coverage will no longer be in place. 545 00:31:40,119 --> 00:31:44,270 Suze: It won't be active, and you have just lost everything. 546 00:31:44,520 --> 00:31:47,439 Suze: So to receive a payout from your insurance company for 547 00:31:47,439 --> 00:31:52,910 Suze: the damage, your policy must remain active. So that's what 548 00:31:52,910 --> 00:31:54,920 Suze: you need to know, number one. 549 00:31:55,900 --> 00:32:00,160 Suze: Also, your mortgage lender is going to require you to 550 00:32:00,160 --> 00:32:04,949 Suze: maintain your insurance on this property even if it is destroyed, 551 00:32:05,199 --> 00:32:09,829 Suze: and that's what insures the lender's financial interest in your property. 552 00:32:10,359 --> 00:32:13,319 Suze: What you should do, however, is you can contact your insurer, 553 00:32:13,479 --> 00:32:17,359 Suze: make sure you notify them immediately about what happened, and 554 00:32:17,359 --> 00:32:21,959 Suze: they will guide you through the claims process and everything. So, JJ, 555 00:32:22,079 --> 00:32:25,560 Suze: you know what costs are covered and what are not. 556 00:32:25,969 --> 00:32:29,369 Suze: Now what's interesting is that you also need to know 557 00:32:29,369 --> 00:32:30,890 Suze: they cannot drop you. 558 00:32:32,599 --> 00:32:33,390 KT: So that's my next question. 559 00:32:35,000 --> 00:32:35,430 Suze: You have a question like that? 560 00:32:35,280 --> 00:32:37,800 KT: Yeah, let me, let me read it to you. This 561 00:32:37,800 --> 00:32:42,000 KT: is from Rosita. Wait, can my insurance company cancel me 562 00:32:42,000 --> 00:32:46,199 KT: during our rebuild? And if our insurance company is giving 563 00:32:46,199 --> 00:32:49,000 KT: us trouble, what do I do? So there you go. 564 00:32:49,040 --> 00:32:53,310 KT: Rosita has that exact question. Can they cancel her? 565 00:32:53,599 --> 00:32:56,989 Suze: So before I answer her, can we for a second, 566 00:32:57,000 --> 00:32:59,819 Suze: can we go back to JJ because he wanted to 567 00:32:59,819 --> 00:33:01,400 Suze: know what should he do. So. 568 00:33:01,525 --> 00:33:06,354 Suze: JJ, you are to contact immediately your electrical company, your 569 00:33:06,354 --> 00:33:11,025 Suze: gas company, your water company. Call all your utility companies 570 00:33:11,314 --> 00:33:14,635 Suze: and report the destruction of your home, obviously, and do 571 00:33:14,635 --> 00:33:19,074 Suze: what's called a service disconnection, and this will stop future billing. 572 00:33:20,209 --> 00:33:24,010 Suze: For cable and internet, contact your provider to cancel or 573 00:33:24,010 --> 00:33:26,890 Suze: suspend that service as well so because you're no longer 574 00:33:26,890 --> 00:33:31,650 Suze: able to use it. Now it is possible that many 575 00:33:31,650 --> 00:33:36,449 Suze: of these companies have what's called a disaster relief program 576 00:33:36,449 --> 00:33:39,089 Suze: which they will make it that you don't have to 577 00:33:39,089 --> 00:33:42,770 Suze: really pay even a back bill or something like that 578 00:33:42,770 --> 00:33:46,130 Suze: just check with your company and find. 579 00:33:46,244 --> 00:33:49,635 Suze: Out also for many of you who may be moving 580 00:33:49,635 --> 00:33:53,194 Suze: let's say you move somewhere, they also may be able 581 00:33:53,194 --> 00:33:57,194 Suze: to relocate your service KT to your new address so 582 00:33:57,194 --> 00:33:59,944 Suze: you don't have to go through all the additional cost 583 00:33:59,944 --> 00:34:05,125 Suze: and everything of setting it up all over again. All right, 584 00:34:05,234 --> 00:34:06,984 Suze: who was it who asked her the other question? 585 00:34:06,994 --> 00:34:08,334 KT: Rosita 586 00:34:08,334 --> 00:34:11,554 Suze: And so here's what you need to know is that 587 00:34:11,554 --> 00:34:13,235 Suze: your insurance company. 588 00:34:13,629 --> 00:34:18,138 Suze: Must continue to reinsure you during the rebuilding process for 589 00:34:18,139 --> 00:34:22,620 Suze: at least 2 years, KT, after the disaster, and they 590 00:34:22,620 --> 00:34:25,860 Suze: are likely to insure the rebuild home as long as 591 00:34:25,860 --> 00:34:28,899 Suze: you are meeting their requirements. So if it's taking longer 592 00:34:28,899 --> 00:34:32,300 Suze: to rebuild, they'll continue to insure you. 593 00:34:32,698 --> 00:34:36,388 Suze: But what's important for you to know is that if 594 00:34:36,388 --> 00:34:40,509 Suze: insurance problems arise and this happened a lot KT during 595 00:34:40,509 --> 00:34:45,468 Suze: the Oakland fires, then there is legal recourse. All of you, 596 00:34:45,479 --> 00:34:49,589 Suze: you don't have to be powerless in these situations, and 597 00:34:49,589 --> 00:34:53,428 Suze: that's through the Department of Insurance. So if you contact 598 00:34:53,428 --> 00:34:58,388 Suze: the Department of Insurance, they will help you now if 599 00:34:58,388 --> 00:34:59,748 Suze: for whatever reason 600 00:35:00,500 --> 00:35:04,179 Suze: your insurance company decides not to renew you after the 601 00:35:04,179 --> 00:35:10,179 Suze: two-year period, that's when you go to the California FAIR 602 00:35:10,179 --> 00:35:12,379 Suze: plan if nobody else will do so. 603 00:35:12,580 --> 00:35:12,620 Suze: All right. 604 00:35:13,139 --> 00:35:13,259 KT: All right, 605 00:35:13,300 --> 00:35:15,219 KT: my last question is from Donna. 606 00:35:15,889 --> 00:35:19,600 KT: She said, Suze, how long do I have to rebuild? 607 00:35:19,899 --> 00:35:22,409 KT: It's so hard when I haven't been able to even 608 00:35:22,409 --> 00:35:25,489 KT: get in touch with my agent. This is a big 609 00:35:25,489 --> 00:35:29,169 KT: problem going on right now, Suze, she said. His voice 610 00:35:29,169 --> 00:35:33,090 KT: mail is full. I can't even leave a message. Should 611 00:35:33,090 --> 00:35:36,129 KT: I even think about rebuilding and just take the money 612 00:35:36,129 --> 00:35:39,359 KT: and run and just become a lifelong renter? 613 00:35:40,000 --> 00:35:42,850 Suze: No, no, no, cause if you just take the money 614 00:35:42,850 --> 00:35:43,679 Suze: and run. 615 00:35:44,110 --> 00:35:48,239 Suze: And you don't rebuild. Then, Donna, all you're going to get, 616 00:35:48,290 --> 00:35:51,820 Suze: even if you have been paying for replacement value is 617 00:35:51,820 --> 00:35:55,459 Suze: the actual cash value. That is it, and you're out 618 00:35:55,459 --> 00:35:58,820 Suze: of there. You still then do own the property, however, 619 00:35:58,919 --> 00:36:01,600 Suze: and you could sell that as well, but 620 00:36:01,860 --> 00:36:04,090 Suze: You know how I just said a few seconds ago 621 00:36:04,090 --> 00:36:06,870 Suze: that they have to insure you for 2 years, KT 622 00:36:06,870 --> 00:36:10,449 Suze: and things like that. The reason I said that is 623 00:36:10,449 --> 00:36:15,129 Suze: that most insurance companies do give you anywhere from 12 624 00:36:15,129 --> 00:36:18,679 Suze: to 24 months to rebuild or repair your home. In 625 00:36:18,679 --> 00:36:23,520 Suze: this particular situation, they'll probably give you longer than that, 626 00:36:23,530 --> 00:36:24,550 Suze: but remember. 627 00:36:25,189 --> 00:36:29,899 Suze: Everything takes time, so you have permits you have environmental 628 00:36:29,899 --> 00:36:32,750 Suze: so just make sure you stay in touch, Donna, with 629 00:36:32,750 --> 00:36:38,959 Suze: your insurance company to understand your deadlines and requirements and just, 630 00:36:38,969 --> 00:36:41,260 Suze: just stay in touch with them and do what they 631 00:36:41,260 --> 00:36:42,870 Suze: ask you and. 632 00:36:43,530 --> 00:36:46,479 Suze: You could rebuild, sell, and then become a renter if 633 00:36:46,479 --> 00:36:47,070 Suze: you want. 634 00:36:47,679 --> 00:36:49,239 KT: Suze, what do you think's going to happen to the 635 00:36:49,239 --> 00:36:52,350 KT: real estate value like just in Pacific Palisades? 636 00:36:52,760 --> 00:36:55,909 Suze: So listen, we're already way over our 30 minutes. I'll 637 00:36:55,909 --> 00:37:00,520 Suze: do a thing on real estate on Sunday, everybody, and 638 00:37:00,520 --> 00:37:04,080 Suze: what I really think's happening in the United States, do 639 00:37:04,080 --> 00:37:06,030 Suze: you remember a long time ago I said to all 640 00:37:06,030 --> 00:37:06,719 Suze: of you when 641 00:37:07,000 --> 00:37:09,370 Suze: I was on CNN and they wanted to do a 642 00:37:09,370 --> 00:37:12,189 Suze: thing with me. What is your greatest nightmare? And my 643 00:37:12,189 --> 00:37:17,340 Suze: greatest nightmare was what was happening with insurance and real estate. 644 00:37:17,669 --> 00:37:19,750 Suze: So for all of you who always have wanted to 645 00:37:19,750 --> 00:37:22,149 Suze: invest in real estate, you think real estate is the 646 00:37:22,149 --> 00:37:25,709 Suze: only way to invest, and you're just stuck on that. 647 00:37:25,949 --> 00:37:31,350 Suze: Just remember what just happened. So KT, everybody is loving 648 00:37:31,350 --> 00:37:34,060 Suze: that we changed the theme song. You didn't want me to, 649 00:37:34,149 --> 00:37:34,509 Suze: did you? 650 00:37:34,989 --> 00:37:38,820 KT: I just love um what Sia created, but I think 651 00:37:38,820 --> 00:37:42,689 KT: what you're playing right now is more... is more appropriate. 652 00:37:42,979 --> 00:37:46,259 Suze: Yeah, our theme song really for this year, I'm going 653 00:37:46,260 --> 00:37:49,739 Suze: to keep it as KT Together we will rise because 654 00:37:49,739 --> 00:37:52,500 Suze: this is going to be a problem that I know 655 00:37:52,500 --> 00:37:54,899 Suze: just happened in LA, but it's going to come up 656 00:37:54,899 --> 00:37:57,779 Suze: in other places again whether it's a hurricane or a 657 00:37:57,780 --> 00:38:03,419 Suze: tornado or anything, right? And even though our overall theme. 658 00:38:04,100 --> 00:38:08,299 Suze: This year is make your money, make more money. And 659 00:38:08,300 --> 00:38:11,739 Suze: hopefully by listening to this podcast, we are helping you 660 00:38:11,739 --> 00:38:13,899 Suze: making your money, make more money. 661 00:38:14,639 --> 00:38:18,218 Suze: The truth of the matter is the strongest thing we 662 00:38:18,219 --> 00:38:21,580 Suze: can do, the best thing we can do is stick 663 00:38:21,580 --> 00:38:27,639 Suze: together because together what will happen, KT, we will rise. 664 00:38:27,780 --> 00:38:29,770 Suze: See you Sunday, everybody. Bye bye.