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Home owners policy question
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piggy007
Mommy of 2!!
Member since 11/08 1742 total posts
Name:
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Home owners policy question
When getting quotes today for a homeowners policy I was asked for what value do I want to insure the house for?
Do you have to get a homeowners policy for the amt. you purchased the house for? Or for the amt of your mortgage? Or can it be for an amt. less?
I have no idea...any help?
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Posted 12/3/09 6:14 PM  |
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Prudential Douglas Elliman Real Estate
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cutie
LIF Adult
Member since 2/06 1893 total posts
Name:
Janine
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Re: Home owners policy question
When we got ours, we were told to get it for the replacement cost of the house. You do not need to insure the land (which often is the bulk of the purchase price).
The insurance company should be able to help you figure out what that cost would be. When they gave me a number, I chose to add about 10% to that just to cover myself.
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| Posted 12/3/09 8:34 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Home owners policy question
I was shopping homeowners policies today too! Our replacement cost ended up being $275-300K
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| Posted 12/3/09 11:31 PM |
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jen919ifer
LIF Adolescent
Member since 7/08 803 total posts
Name:
Jennifer
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Re: Home owners policy question
The average replacement cost right now is about $200 per square foot. I use this to determine what I need the dwelling coverage to be at.
If you have a higher value home, use $300 per square foot
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| Posted 12/3/09 11:44 PM |
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piggy007
Mommy of 2!!
Member since 11/08 1742 total posts
Name:
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Re: Home owners policy question
Ok thanks. I'm going to call the mortgage company today just to verify if I need the mortgaged value or just the replacement value. Thanks for the tips.
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| Posted 12/4/09 8:45 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Home owners policy question
You typically need just replacement cost.
The insurance company should be giving you this figure, based on the square footage of your house. They have a calculator/estimator they run and they should only be insuring you for replacement value of your house.
You shouldn't overinsure.
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| Posted 12/4/09 11:13 AM |
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