Valuation course: counts toward CE, taken once, before estimating or explaining coverage levels.

Allowed: insurer staff, licensed P/C/personal lines broker-agents, contractors, architects, licensed appraisers.

Unlicensed staff may not even explain coverage levels.

Outline: producer documents replacement cost at original application.

File: who prepared it, status, contact, method, documents used.

Keep for the policy term or coverage period + 5 years; phone estimate → copy within 3 business days.

Include labor, materials, overhead, profit, demolition, debris removal, permits, plans.

Never base it on land resale value or the loan balance.

Required = value × %; payment = carried ÷ required × loss.

Coinsurance reduces payment; it never changes the limit.

Check when the deductible applies and whether ACV is a floor.

Total loss: payment capped at the limit, whatever the formula says.

Meeting coinsurance does not raise the limit.

Value is measured at the time of loss, so rising costs can create a penalty.

ACV = replacement cost − fair physical depreciation, capped by the limit.

RC with a rebuild requirement: ACV first, the difference after the work.

At least 12 months to collect; 36 months in a state of emergency; 6-month extensions.

Extended RC: limit + stated % or amount.

Guaranteed RC: no preset cap allowed under the label (§10102(e), (f)).

Code upgrade (ordinance or law) pays added code and zoning costs.

Demand surge: post-catastrophe jump in rebuilding costs.

Prepare with higher limits or extended replacement cost.

State of emergency: dwelling and other structures limits can be combined to rebuild the home (§10103.7(a)).

Earthquake damage: excluded from homeowners and dwelling policies.

Fire caused by or following an earthquake must be covered in California.

CEA policies are sold and serviced only through participating insurers.

Non-participating insurers still must offer earthquake coverage; stand-alone non-CEA policies exist.

CEA disclosure: no CIGA, possible reduced or installment payments, surcharge up to 20%, limits such as no pools.

One CSL for Coverages A and B; other limits are separate.

Minimum offer may exclude pools, outbuildings, masonry fences, landscaping (§10089(a)(1)).

Deductible = % of CSL, met only by dwelling losses; loss of use has none; it reduces the loss, not the limit.

Options: loss of use up to $100,000; personal property $5,000 or $25,000; code upgrade to $20,000 or $30,000.

No guaranteed or extended replacement cost in CEA policies.

Retrofit discount: 5% by statute, more allowed; 25% for pre-1940 raised-foundation retrofits; none for slab homes.