Homeowners Insurance Questions

[dakcp2001]

I am confused by my HO insurance and the amounts. Now that my home is worth significantly less then when I purchased it, should I lower my HO insurance? SHould it be insured on "market" value ?


How can I lower my costs, I feel like I am paying a LOT for my homeowners out of fear & ignorance of not knowing what I actually need for coverage. WHen I call to review it, they always tell me I need it all and then some.

 

[tommya60]

Homeowners Insurance is to replace damage to your home/furniture/whatever. So you really need to know what it's going to cost to rebuild, not rebuy the house.

By the way, schedule any important jewelry separately. The longest 2+weeks of my life were when I lost my wedding rings. I searched everywhere--had the seats taken out of my car, took the couch apart, etc. I was heartbroken...totally heartbroken. I called the insurance company, because I had separately scheduled them on the insurance policy, they sent me a check for the appraised amount on file. The day the check arrived I found my rings (promptly called to ask how to return it the check). The only way I slept those 2 weeks was knowing those rings were insured. By the way, I also learned to get the appraisal updated.

 

[ZuZugal]

As the previous poster said, the rate is based on replace/rebuild, not the current market value of your home.

I think your best bet is to shop the various companies and see who can give you the best rate for the same coverage.

We have had State Farm for all coverage (home,cars,etc) for 23 years. It has been tempting to change, because I know we could get our homeowners somewhat cheaper, BUT...if you have a claim one of the first things looked at is how long you have been insured with that company. Even though we might be paying more than what I'd like, SF has come through for us on numerous occasions.

 

[dakcp2001]

HOw do I know if they are telling me the appropriate rebuild cost? I am just having a hard time trusting the insurance company! I guess I will shop around.

 

[clh2]

And while your home may be worth significantly less...the mortgage company may need you to keep a certain amount of insurance on the home - with them as a payee.

Of course - if you no longer have a mortgage...then this would not apply to you!

 

[dakcp2001]

Of course - if you no longer have a mortgage...then this would not apply to you!

Of course I do! I am lucky though, not to be upside down! The house is worth more than I owe.

 

[mrsstats]

Do you have an insurance agent or do you deal directly with the company? Our agency has a replacement cost estimator that we use to figure the replacement cost on your house. It is based on square footage of your house plus other information on your home. Call I see if they can do something like that for you.

 

[JoiseyMom]

The insurance company will send out a home appraiser. We had one company for 10 years, and they would come and re-appraise. We switched companies this year...had too and saved over 1k! Yes..the first company was that expensive!!

Of course never had a claim until this year . The new isnurance company has been great with the claim! Hate to see what my rate is gonna be rasied too in May!!

 

[wdwfan16]

I am confused by my HO insurance and the amounts. Now that my home is worth significantly less then when I purchased it, should I lower my HO insurance? SHould it be insured on "market" value ?


How can I lower my costs, I feel like I am paying a LOT for my homeowners out of fear & ignorance of not knowing what I actually need for coverage. WHen I call to review it, they always tell me I need it all and then some.

You want you HOI set to what it would cost to rebuild you home not what it is worth.

 

[tileman]

I may add to look at getting replacement cost value on your stuff ours are on a diff policy.

I used to back about 15 yrs ago do a lot of ins jobs and seen 1st hand the ins is looking out for them not you.

By having the replacement cost on your Personal belongings if you have a 50" LCD tv got new say.. 2,000 3 yrs the house burns or flood they say the tv now is worth hmmm 500.00 But with the replacement cost value they should pay todays prices for the 50" tv.

And the same go's for your house make sure to get Replacement Cost Coverage.



Found this good info

There are two different kinds of homeowners insurance policies: a cash value policy and a homeowners insurance replacement cost policy. A cash value policy, while cheaper, doesn’t provide as much coverage as a homeowners insurance replacement cost policy. If you’re more concerned about coverage and property protection then a homeowners insurance replacement cost policy may be right for you.

If you’re looking for an insurance policy that will financially restore all of your personal belongings and your property, then look no further than a homeowners insurance replacement cost policy. A homeowners insurance replacement cost policy is the only kind of coverage that will cover the complete rebuilding of your home. It will also replace any of your destroyed/lost personal belongings for its full worth, and will not include depreciation.

 

[ksumn1]

May I chime in on the insurance isswue with a related issue. please, please, PLEASE take the time when you redo your homeowners insurance to make sure you make an updated contents list and/or video. We had a house firel last July and it's so stressful trying to deal with the loss of a home, finding another one, the emotional issues and on top of it trying to figure out the value of everything in your house. I mean down to toiletres, toothbrushes, under, if you own it you have to be able to value it to get the proper contents settlement.

Just a friendly reminder

 

[iwannbindisnee]

I am an insurance agent in MD & all of our insurance companies that I am aware of, have a "replacemnt cost guide" that is on the computer. Most are based on a builder's replacement cost to rebuild the home using costs from the area. Ours is based on Marshall, Swift & Boekch (sp?). We plug in square footage, number of bathrooms, flooring, all sorts of items in the home & at the end, it gives us a "replacement cost" figure. Most copanies will not let you go less than this amount. Ask your agent if they can do this. It should be relatively painless! Feel free to ask any questions, I'll try to help! Debbie

 

[Colleen27]

As others have said, it is based on the value to rebuild rather than the market value and most companies won't offer less coverage than the value they determine. We shopped around unsuccessfully to try to find one that would, because the nature of our home is such that to rebuild it would be extremely expensive due to a ton of features that we wouldn't want in a rebuilt home (plaster, fancy moldings, carved pocket doors, ornate brass hinges, etc. that just wouldn't matter outside of the context of a historic home). So here we are, insured for a replacement value of more than twice what it cost my inlaws to build a larger, more luxurious home from the ground up.