Fyi.....................

[427 S/O]

Saved a little.........

Got my homeowners ins. bill and just for the heck of it, I call the ins. company and ask they reduce my premium because home values/prices have fallen, they were charging me 'replacement costs' based on values of 06', 07' and 08'. They readjusted my premium down by 18%.

You don't need to wait for renewal, call em' anytime.

[jhv48]

Originally Posted by 427 S/O

Saved a little.........

Got my homeowners ins. bill and just for the heck of it, I call the ins. company and ask they reduce my premium because home values/prices have fallen, they were charging me 'replacement costs' based on values of 06', 07' and 08'. They readjusted my premium down by 18%.

You don't need to wait for renewal, call em' anytime.

Be very careful because the cost to rebuild your house has nothing to do with the value of your house. It may cost $200,000 to completely (from the ground up, including demolition of the old house and debris removal) rebuild a house that is only worth $150,000.

Moral: Only carry enough insurance to actually pay for the total rebuilding (including the slab) of your home. And don't forget to include updating it to the current codes that were not in effect when the home was initially built.

Replacement costs have nothing to do with sales price. Remember, sales price also includes the land it is sitting on, which will still be there if the home burns down, thus making the value of only the house much less.

Your insurance coverage amount should be enough to completely rebuild your existing home from the ground up in case of a major catastrophe.

[427 S/O]

Good info, I built my house (contracted) and the local subs have reduced their prices so I kinda know what I'll pay 'IF' it happens, including materials.

Thanks......

[Dan40]

We had extensive damage from Hurricane Jeanne in 04. But far from a total rebuild. Still the insurance co. paid $58,000. more than the insurance 'value' of the house to repair it. Don't know why they canceled me!! [They canceled ALL policies for Florida coastal properties.]

Dan

[Ron61]

I have a total value policy and always have that will pay up to 5-% more than what the house is insured for. It cost me $25 a year extra to have it added and they automatically adjust my coverage according to the market. I talked to my agent a month or so ago and asked him why the value had dropped some and he told me because of the market, but that I was well covered. Example, my house is covered for $150K, they will pay up to $275K to rebuild it.

Ron