New policy has my house insured for $321000. 1500 sqft with attached two car garage. Could not sell for that and would not cost that much to rebuild. How do they calculate coverage.

Demo and disposal costs if the old house needed to be torn down after a fire?

I may be close to that, though 2050 SQ FT, WI. Mine is up to $1100 a year or so, ‘replacement coverage’, more or less.

There are ways to massage the coverages to get the cost up or down, I also have a $1k deductible. What about contents?

I’m still with USAA for most, since 1985. I’ve only had one auto claim over those years, wife, $5k.

One has cost to think about, another biggie is the service when needed.

32000 for contents I think.

quote:

Originally posted by 9mmnut:
New policy has my house insured for $321000. 1500 sqft with attached two car garage. Could not sell for that and would not cost that much to rebuild. How do they calculate coverage.

A good question for your agent

It's insurance for the insurance, for which you need more insurance to insure the insurance and so on and so forth.
Plus the associated fees, which also have fees.

It has nothing to do with market value, simply demo and rebuild cost.

Underwriters have software that spits out a valuation based on inputs, garbage in garbage out. That said, as the customer it is on you to make sure you have the appropriate limits. Whatever the number is you think it should be, ask your agent to quote premium at that amount. It may not be much different.

I've handled a claim where a home insured for over $1m burned to the ground and they were underinsured. Kicker is, a few months prior they went to their agent and asked to have the limits lowered to save on the premium...oops.

Only 10% for contents is INCREDIBLY low. Most policies I've seen are 60-75%. That may sound high, until you spend a day wandering around your house thinking about how much all that little stuff you've accumulated would cost to replace.

To get you to pay the highest premium they can. Tell them what you want it insured for. If they do not want to do that go somewhere else.

And I call bs on most of the explanations above.
Seven plus one has it about right.

Good luck on contacting the agent. He just bought a new boat and is on vacation.

Most of what i have seen is insured for less than the value of the house considering the property has inherent value that never goes away.

I had mine capped at 200k. House may sell for $140.00. Maybe.
As said, The land retains value even if the home is wiped clean off of it.
Most of the small stuff I accumulated, I would never replace

Called agent and had coverage dropped to #250000 and deductible increased to $1000.
Reduced premium by around $200. Personal property was $225000. Not sure what pp will be now. Only $70 reduction in premium for total coverage reduction and the deductible increase saving $130. Still almost $600 per year.

$600 a year for those coverages doesn’t sound bad to me.