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Post by Ryann on Aug 6, 2014 3:13:51 GMT
I'm back for another house-buying question. To recap: DH and I are purchasing our first house and we are in escrow (yay!). We were told by our lender that we need to get some quotes on homeowners insurance, pick whichever we'd like to go with, and then give him the information to get it set-up in time for the loan funding. He also introduced us via email an insurance person (broker?) that we gave the house specifics to and were supposed to hear back on rates today. Well today has come and gone and we didn't hear back. I would like to pursue quotes on my own as well as whatever information the insurance broker comes up with.
I have already posed this question to our lender, but thought maybe the peas would know and I could start getting online quotes tonight, instead of waiting until tomorrow afternoon when I get off work.
So my question... For dwelling coverage - would this amount be the purchase price, loan amount or some other amount?
Thank you!
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Post by magentapea on Aug 6, 2014 3:23:53 GMT
My understanding is that the dwelling is just the structure, so what it would cost to rebuild. Keep in mind that your purchase price includes the land, and you already have that, so theoretically you could go with the appraised value less the land cost. Our insurance agent told us we had too much coverage when we insured our home for the full purchase price and that was his explanation.
Congratulations on your new home.
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Post by librarylady on Aug 6, 2014 3:28:15 GMT
My understanding is that the dwelling is just the structure, so what it would cost to rebuild. Keep in mind that your purchase price includes the land, and you already have that, so theoretically you could go with the appraised value less the land cost. Our insurance agent told us we had too much coverage when we insured our home for the full purchase price and that was his explanation. Congratulations on your new home. What she said........ |
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marianne
Pearl Clutcher
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Jun 25, 2014 21:08:26 GMT
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Post by marianne on Aug 6, 2014 3:31:49 GMT
You might also want to consider adding replacement value insurance on the contents of your home - in the event of catastrophe, what it would actually cost to replace things rather than just market value.
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Deleted
Posts: 0
Jun 23, 2024 19:32:43 GMT
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Post by Deleted on Aug 6, 2014 3:33:36 GMT
Yup, the cost to rebuild. Your insurance agent can help you determine what an appropriate coverage amount based on construction costs in your area and the level of finishes in your home.
Also, be sure that you get replacement value for contents.
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Post by Ryann on Aug 6, 2014 3:46:16 GMT
This is all very good information - thank you! I pulled the property taxes that were assessed this past tax year so I have an idea of the land value. The appraisal was done on Friday and we should get the results tomorrow. I'm not sure how to figure out construction costs, so I guess I may need to wait to hear from the insurance broker after all. Thank you for responding tonight! I'm overly excited about this whole process and the idea of having to wait another day for information (even if approximate) was driving me bonkers!  |
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Post by cmpeter on Aug 6, 2014 3:54:38 GMT
We have ours with the same company that does our cars...you can get a discount by bundling them.
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Post by redrulz on Aug 6, 2014 3:58:56 GMT
I think ours covered replacement value of the structure (and probably value of the land)and whatever value that would cover replacement of the contents inside the house as well.
We went with the same company we have our life insurance and car insurance because it was easier. I think it also helped when we had a couple of claims in a 4 year period to not be dropped. One time we had a flood and another time our entire subdivision was hit with very large hail and everything that wasn't brick was completely damaged. The agent told us because we were a "valued customer" we would not be dropped. Several of our neighbors were not so lucky and all of those that were dropped had only home-owners insurance with the company. Just something to think about.
Congrats on the new house!
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Post by angiet on Aug 6, 2014 4:04:51 GMT
I work in insurance and you do want to insure for cost to rebuild and for replacement cost. My company has on-line quotes but really you get a better quote if you call a local agent. They can ask more specific questions and prepare you a better quote than the on-line quotes can. Agents can also explain the coverages that the policies provide. Consider using the same company as your auto insurance, you will get more discounts. Look into claim ratings and how the company handles claims,this is really important should you have to file a claim.
ETA: My company has a program where we ask you about features of your house to determine the cost to rebuild. It does not include the cost of the land, which you would still have in the event of a total loss.
Often the cost to rebuild is more than our customers are paying for their houses in the current market. This is due in part to the fact that the cost of materials and labor have not decreased in the past few years and the market values of homes have.
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Post by ntsf on Aug 6, 2014 5:17:16 GMT
we have been happy with csaa insurance...and you should consider earthquake insurance. never know when the big one will hit.
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Post by ptamom on Aug 6, 2014 5:51:21 GMT
We just switched insurers last month. I had to spend about 20 minutes on the phone answering detailed questions about my home. Structure, finishes, upgrades, types of flooring, wall coverings, roofing material, etc. plus I could tell that she had pulled up pictures of my house, both satellite and street view.
From there, the replacement cost of my home was determined. Replacement costs of our belongings was also determined.
The interesting part, was that there was also a clause added that if the building codes had changed between the time we bought the policy and the time of loss, any additional cost due to costlier building codes would be covered, up to 25% over the top of our coverage.
I was comparing apples to apples between my current policy and the new company's offer, and my old company did not offer that. Even still, the quote came in several hundred dollars lower than our old company.
We reluctantly switched to the new company, so we could bundle with our fairly new auto insurance, and save money. But I did feel a twinge of regret, because at the time we bought our current house, California homeowners insurance was undergoing an upheaval, in that insurance companies didn't want to cover earthquakes anymore.
We were about to close on our house, and could not find anyone who would insure us. Without insurance, the sale would not go through.
We contacted the insurer of our previous home, 500 miles away. We had sold it a few months prior. He agreed to "extend" our insurance to the new house. We've been here 18 years, never had a claim.
But apparantely, we weren't getting the best deal, either.
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