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luvbuffet
LIF Adult
Member since 7/10 6470 total posts
Name:
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Home insurance
How do you figure out what it would be on a home? Is there's an average ? A formula??
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Posted 8/11/16 12:31 PM  |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Home insurance
From what I remember our agent explaining there are two types: replacement and market value. Don't get market value. You should insure your home for what it would cost to replace it if something happens. Say you spend $500K on a house. That amount includes the land and the house. What would it cost to rebuild the house as it was in today's market. That's the amount of insurance you need.
I know there was some sort of formula our agent told us to extrapolate the land from the purchase price, but I don't remember what it was.
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| Posted 8/11/16 2:45 PM |
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luvbuffet
LIF Adult
Member since 7/10 6470 total posts
Name:
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Re: Home insurance
Genius!!! Thank you!!! Especially in today's market, what a house costs to build is wayyyyyyy less than what people are paying. You're pretty much paying for the location, not the actual house.
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| Posted 8/11/16 2:47 PM |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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Re: Home insurance
Posted by luvbuffet
Genius!!! Thank you!!! Especially in today's market, what a house costs to build is wayyyyyyy less than what people are paying. You're pretty much paying for the location, not the actual house.
Exactly. I work in Mtgs- we tell ppl to estimate $85-100 per month in HOI premiums in Queens (which I think is where you're looking?)
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| Posted 8/11/16 3:25 PM |
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Home insurance
We always have to do a cost estimator on the home. It is basically entering specifics on the home to come to a replacement cost number. If you want a general idea, use $200 to $250 per sq. foot. If you are buying a higher value home you will use a much higher value.
If you would like help with obtaining quotes or have any questions please contact me :)
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| Posted 8/14/16 9:54 PM |
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Kitten1929
LIF Adult
Member since 1/13 6040 total posts
Name:
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Home insurance
I also just switched carriers and the new carrier said my house was under-insured when it came to rebuilding. My house is brick and he said we needed to almost triple the amount in order to rebuild in brick. I was shocked. Then my husband said, if something happened and we rebuild, we can rebuild in whatever we want, doesn't have to be brick.
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| Posted 8/16/16 8:34 AM |
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luvbuffet
LIF Adult
Member since 7/10 6470 total posts
Name:
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Re: Home insurance
we walked away from the home. 
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| Posted 8/16/16 8:39 AM |
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pumpkinmom
LIF Adult
Member since 5/12 2911 total posts
Name:
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Re: Home insurance
Posted by Kitten1929
I also just switched carriers and the new carrier said my house was under-insured when it came to rebuilding. My house is brick and he said we needed to almost triple the amount in order to rebuild in brick. I was shocked. Then my husband said, if something happened and we rebuild, we can rebuild in whatever we want, doesn't have to be brick.
It's generally not good advice to underinsure your home. Hopefully, the agent explained if you have a coinsurance provision and you understand how you'll be paid for partial losses. I think a lot of people wouldn't be able to absorb their portion of a partial loss with a coinsurance penalty.
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| Posted 8/16/16 10:59 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: Home insurance
We talked to a broker to see what she recommended and then she priced out different companies for rates.
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| Posted 8/17/16 9:42 AM |
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