Quantum Home 2.0® Policy Conversion in California
With the introduction of our new home product, Quantum Home 2.0 in California, we will convert existing Quantum Home and Homesaver customers to the new Quantum Home 2.0 product based on customer’s policy renewal date. We anticipate that we will begin the conversion process on December 7, 2020 for policies effective on March 9, 2021.
In preparation for the conversion, Frequently Asked Questions have been developed to provide you with the details and timeline of the conversion. The FAQs will address the following topics:
- California Quantum Home 2.0 Conversion Background
- Conversion Policy Package
- Policy Impacts
- Coverage Impacts
- Premium Impacts
- Rating Definitions
California Quantum Home 2.0 Conversion Background
In California, insurers are required to convert existing policies when they introduce a new insurance product in the state. Since we introduced our new Quantum Home 2.0 product in May of 2020, we are required to convert customers from our existing product to the new product.
No. Travelers will automatically convert existing eligible customers to the new product on their existing policy’s renewal date, beginning March 9, 2021. As part of the conversion, Travelers will non-renew the existing policy and replace it with a new Quantum Home 2.0 policy.
No. When an insurer introduces a new product in California, they are required to convert all existing eligible home policies to the new home product.
Conversion Policy Package
We will mail customers a conversion policy package approximately 90 days before their conversion effective date.
Due to non-renewal notification requirements, the conversion policy package will be mailed to all customers including those with a paperless preference. Customers can visit MyTravelers.com to receive future bills and policy documents electronically.
The conversion package for the new Quantum Home 2.0 policy will include a:
- Welcome notice
- Non-renewal notification for the existing policy
- List of variables used to rate the policy
- Summary of coverage changes
- Replacement cost estimate (if applicable)
Customers and agents should review the conversion package to ensure all the new policy information is current. For a smooth transition, we’re asking customers and their agents to:
- Review the policy information for accuracy
- Evaluate the coverage limits to ensure they are adequate. For example, detached structures on the property, such as a garage or barn, should be considered in the Coverage B (Other Structures) amount.
- Determine if the following situations apply. They are not applicable for all policies but are important if they do apply:
- Changes have been made to the Trust Coverage endorsement (available for homeowners and condo). If the home is owned by a trust, the grantor must be the named insured with the trust name and trustee listed on the endorsement. For Landlord only, the grantor must be the named insured with the trust listed as an additional insured.
- If the home is built on a slope or into a hillside, this information must be reflected in the replacement cost estimate included in the policy package
No. When the policy converts it will receive a new policy number. So the customer is aware of this update, the conversion policy package will include the prior policy and new policy numbers.
No. The agent will remain the same on the new policy.
The mortgage company will receive information on the new policy as well as a notification that the prior policy is no longer active.
Customers’ billing account number and payment schedules will remain the same.
No. Because the existing home policy will be non-renewed to convert the policy, we are required to send paper notification of the new policy.
No. If a customer previously received policy documents electronically, they will need to provide consent for us to continue sending electronic documents. Customers can visit MyTravelers.com to update their paperless preference for bills and policy documents.
Discounts that are available in the new product will be applied, if the policy qualifies. The policy tenure will carry over to the new policy.
Replacement policies may include changes that clarify, broaden or reduce coverage. A summary of the changes is included in each customer’s policy package. We suggest that customers and agents read the new policy and review the policy declarations.
It’s a report that provides the estimated replacement cost of the property or what it would cost to rebuild the home.
The cost to rebuild includes the estimated construction material, labor and equipment costs of the home while maintaining the same size and quality of construction, at today’s prices. Key features that impact the cost to rebuild a home include square footage, number of stories, construction materials and roofing, kitchens and bathrooms, garages and other special features such as fireplaces and porches.
The cost to rebuild a home often differs from what was paid for the home, or the cost for a similar home in the area. For this reason, market value is not used to determine the coverage amount needed. Market value can be affected by many factors, including the location of the home, economic conditions and value of the land. It’s important to know that rebuilding costs for insurance purposes can also differ from tax assessments, new construction costs and other appraisals of the home.
The cost to rebuild the home has been updated to reflect today’s prices. Some reasons that building costs may be different include:
- Building codes may have changed since the home was built.
- More specialized workers are needed to prevent further damage and to rebuild the home.
- Trees, shrubs and power lines can make it difficult for large equipment to access the property.
- Materials to restore the home may be more expensive or hard to find.
The home details should be reviewed to make sure the information used is accurate.
This is because the coverage amount on the prior policy was lower than the updated replacement cost estimate. The coverage limit was automatically increased to reflect the replacement cost. The home details should be reviewed in order to make sure the information used is accurate.
This is because the coverage amount on the prior policy was higher than the updated replacement cost estimate. The coverage limit was not automatically reduced. After reviewing the replacement cost estimate for accuracy, if a customer believes their coverage limits are higher than they need to be, they should contact their agent or a Travelers representative to discuss.
We updated the existing estimated cost to rebuild the home. If this information was not available in our records, third-party data or a predetermined, default value was used.
Customers can contact their agent or a Travelers representative at the phone number listed on the policy declarations page of the policy.
We used new and existing rating characteristics to calculate the policy premium. If this information was not available in our records, third-party data or a predetermined default value was used. Customers can find the information used to rate their policy on the second page of their policy package. Customers should review and validate this information.
Customers can contact their agent or a Travelers representative at the phone number listed on the policy declarations page.
It is important that accurate information is used to rate the policy. Changes to policy information may or may not impact the policy premium.
Below are common rating factors and their description:
Square Feet: The number of square feet for the finished living area of the main structure, excluding any finished or unfinished garage, basement or attic.
Number of Bathrooms: The total count of all bathrooms located in the main structure. This count includes full and half bathrooms. 1 ½ bathrooms will be displayed as 2.
Number of Stories: The number of stories above the main structure’s foundation. This does not include attics or basements (including a walkout basement). Full and half stories will be counted. 1 ½ stories will be displayed as 1.5.
Siding Type: The siding material covering more than 50% of the main structure’s exterior.
Garage Size: The number of vehicles that fit in the garage located on the property, regardless of the number of doors. Half garage stalls will not be included in the count. 1 ½ garage stalls will be counted as 1.
Garage Type: The type of garage located on the property.
Roof Shape: The geometric shape that characterizes more than 50% of the dwelling’s roof surface.
Year Roofing Installed or Replaced: The year that the main structure’s outer most roof layer covering more than 50% of the home was installed.
Date of Last Plumbing Update: The year that significant improvements were made to the plumbing in the main structure. Significant improvements are defined as improvements that require a building permit and cost at least $1,500.
Presence of Swimming Pool: The presence of an above ground or inground swimming pool on the property, including enclosed or indoor pools.
Wood/Coal/Pellet Stove: The presence of a wood, coal or pellet stove located anywhere on the residence premises. This includes fireplace inserts.
Number of Solar Panels: The number of solar panels permanently attached to the roof of the main structure.
Foundation Type: The primary foundation type of the main structure. The following foundation types are applicable:
- Basement – A space that is partially or fully underground and accessed by stairs from the home’s ground level.
- Crawl space – A limited space below the home’s ground level with access wiring and plumbing; can be on posts or have perimeter walls.
- Open/raised – Common around water areas, homes raised on piers above the ground surface.
- Slab – There is no visible space between the ground floor of the home.
Years at Residence: The number of years the named insured has lived in the residence, based on the purchase date of the residence and the policy effective date.
Date of Birth: The date of birth of the named insured. If there are two named insured's listed on the policy, the date of birth of the first named insured will be used.
LEED Certification: The residence premises has a Leadership in Energy and Environmental Design (LEED) certification.
Water Protective Devices: A water sensor or water shutoff device is installed and active. A water sensor detects the presence of water or detects the flow of water in pipes. An automatic water shutoff is a sensor that detects the presence of water or detects the flow of water in pipes and automatically shuts off the water flow.