My house is appraised at 93K. My insurance agent say I involve 157K worth of house insurance.?
This seems high to me. He claims that the replacement helpfulness is the reason this. In the case of a complete loss, I doubt they would salary me 157K, but he disputes this. He also says that the state requires an over value on house insurance. I deduce that I'm paying for more coverage than I need. Can't you buy something like permanent status insurance for the value that I think the property is worth?
Answers:
he is covering himself.. to replace your place will cost that so that's it don't under value you self ,,,,
This CANNOT be said enough!!
The homeowners policy have NOTHING to do with the value or appraisal of the house. It's one and only purpose is to pay to rebuild the house within the event of a total loss. Normally, there is a BIG difference between value and rebuilding cost. The advantage of the house has many factor that effect it's value, but rebuilding costs stay pretty consistent.
Odds are the agent wasn't trying to rip you off. The replacement cost comes from figure the cost to rebuild per square foot of home. Depending on what part of the country and the type of home the agent will amount $65 to $185 per square foot to figure the replacement cost.
I would suggest that you talk to the agent and ask them how they come to the 157K. You have the right to know how they arrived at the 157K then you can do your own research to confirm the digit. That way you will be informed and more comfortable with what the agent is doing.
Trust me you do not want to be under-insured if you hold a total loss house fire. I have seen this occur and it isn't pretty or fun. Source(s): Claims adjuster for way too long.
Yes, what the house sell for is NOT related to how much it would cost to fix. Your problem isn't for a COMPLETE loss, it's for a partial loss. MOST losses are partial losses. If you don't insure for full replacement cost, YOU share the loss. If you're 2/3 insured (your example) and you have a $30,000 kitchen fire, they'll wages $20,000 - their share of the claim.
I've never heard of the state requiring "over valuing" the house. I think there's some miscommunication somewhere. He should know how to show you EXACTLY how he gets the $157K - but in most areas, replacement is approximately $200 per square foot.
YES, in that is "flat coverage" you can buy for your house. The reason most people don't buy it, is it's MUCH MUCH more expensive than a homeowners policy. Minimum premium is $1,000 next to $1,000 deductible. The actual RATE is about 5X what a homeowners policy is rated. AND, it doesn't hold any built in coverages. So if you want to add $25,000 of contents (usually pilfering excluded), that's another $250. Loss of use, $10,000, around $150 more. And liability is $500 (with $1,000 of medical payments included), but has a $1,000 deductible PER CLAIM, including legal costs and insurance company claim costs.
So, you can do it the cheap process - insuring to full replacement cost - or do it your way, and pay going on for 5X what you're paying right now. Your choice. Source(s): agent, 21+ years
You need to allow for inflation of construction plus replacing adjectives your personal items. We have ours the same route. Better too much insurance than not enough to replace your loss.
Hi work in insurance for farmers and it could jump either way. I own a cost calculator that determines how much it would cost to rebuild. You do have to own enough insurance to completely rebuild, your mortgage company will insist on that. If you are concerned that he is not giving you the best rate look around. Get two or three quotes from other companies. the 175k sounds extremely high if your home was appraised at 93K. I would look into it you can e-mail me at greatmom465(a)comcast.lattice and i will help you.
your personall things are covered under a different division of the policy not in the dwelling you also have seperate coverage for money while your home is mortal rebuilt
Depending on the state and where you are at, yes, your home could cost more to replace in the event of a total loss. Also, The apprasial should enjoy a "Replacement cost" evaluation which most insurance companies look at. Within the company i work for, we will allow you 25% over that amount, but nothing more to insure. Possbily try to talk to another agent. Or ask the company he's trying to place you beside.
The appraised value have nothing to do with the replacement cost of the house. If near is such a big difference I am guessing that you have an older home. The replacement cost on an elder home is always more expensive than a new house. Older homes nick into consideration plaster walls, timbers in the walls instead of 2 x 6's. One thing you can do that most companies will do is to insure your house for the functional replacement cost. That technique that if you have a claim you are willing to replace near todays materials instead of the plaster. It will decrease the replacement cost of your house.
call your agent and ask them to travel over the replacement cost with you. If they are not willing to do this, check around for a bright agent. Source(s): agent 25 years
Try another insurance company. The guy you;re dealing next to is obviously trying to increase his commission at your expense. Make official inquiries in the order of the over value issue
Related Questions:
Answers:
he is covering himself.. to replace your place will cost that so that's it don't under value you self ,,,,
This CANNOT be said enough!!
The homeowners policy have NOTHING to do with the value or appraisal of the house. It's one and only purpose is to pay to rebuild the house within the event of a total loss. Normally, there is a BIG difference between value and rebuilding cost. The advantage of the house has many factor that effect it's value, but rebuilding costs stay pretty consistent.
Odds are the agent wasn't trying to rip you off. The replacement cost comes from figure the cost to rebuild per square foot of home. Depending on what part of the country and the type of home the agent will amount $65 to $185 per square foot to figure the replacement cost.
I would suggest that you talk to the agent and ask them how they come to the 157K. You have the right to know how they arrived at the 157K then you can do your own research to confirm the digit. That way you will be informed and more comfortable with what the agent is doing.
Trust me you do not want to be under-insured if you hold a total loss house fire. I have seen this occur and it isn't pretty or fun. Source(s): Claims adjuster for way too long.
Yes, what the house sell for is NOT related to how much it would cost to fix. Your problem isn't for a COMPLETE loss, it's for a partial loss. MOST losses are partial losses. If you don't insure for full replacement cost, YOU share the loss. If you're 2/3 insured (your example) and you have a $30,000 kitchen fire, they'll wages $20,000 - their share of the claim.
I've never heard of the state requiring "over valuing" the house. I think there's some miscommunication somewhere. He should know how to show you EXACTLY how he gets the $157K - but in most areas, replacement is approximately $200 per square foot.
YES, in that is "flat coverage" you can buy for your house. The reason most people don't buy it, is it's MUCH MUCH more expensive than a homeowners policy. Minimum premium is $1,000 next to $1,000 deductible. The actual RATE is about 5X what a homeowners policy is rated. AND, it doesn't hold any built in coverages. So if you want to add $25,000 of contents (usually pilfering excluded), that's another $250. Loss of use, $10,000, around $150 more. And liability is $500 (with $1,000 of medical payments included), but has a $1,000 deductible PER CLAIM, including legal costs and insurance company claim costs.
So, you can do it the cheap process - insuring to full replacement cost - or do it your way, and pay going on for 5X what you're paying right now. Your choice. Source(s): agent, 21+ years
You need to allow for inflation of construction plus replacing adjectives your personal items. We have ours the same route. Better too much insurance than not enough to replace your loss.
Hi work in insurance for farmers and it could jump either way. I own a cost calculator that determines how much it would cost to rebuild. You do have to own enough insurance to completely rebuild, your mortgage company will insist on that. If you are concerned that he is not giving you the best rate look around. Get two or three quotes from other companies. the 175k sounds extremely high if your home was appraised at 93K. I would look into it you can e-mail me at greatmom465(a)comcast.lattice and i will help you.
your personall things are covered under a different division of the policy not in the dwelling you also have seperate coverage for money while your home is mortal rebuilt
Depending on the state and where you are at, yes, your home could cost more to replace in the event of a total loss. Also, The apprasial should enjoy a "Replacement cost" evaluation which most insurance companies look at. Within the company i work for, we will allow you 25% over that amount, but nothing more to insure. Possbily try to talk to another agent. Or ask the company he's trying to place you beside.
The appraised value have nothing to do with the replacement cost of the house. If near is such a big difference I am guessing that you have an older home. The replacement cost on an elder home is always more expensive than a new house. Older homes nick into consideration plaster walls, timbers in the walls instead of 2 x 6's. One thing you can do that most companies will do is to insure your house for the functional replacement cost. That technique that if you have a claim you are willing to replace near todays materials instead of the plaster. It will decrease the replacement cost of your house.
call your agent and ask them to travel over the replacement cost with you. If they are not willing to do this, check around for a bright agent. Source(s): agent 25 years
Try another insurance company. The guy you;re dealing next to is obviously trying to increase his commission at your expense. Make official inquiries in the order of the over value issue
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