Your House insurance-versus the new Values of Houses

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mpaer

mpaer

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Got the annual house Insurance bill at the house I live in (not my house I pay half the Insurance and Taxes).
The Structure coverage is like 40% short of what Wake County tells me the house is worth
We are inquiring
But hey everybody
With housing values legitimately zooming the last few years Better check your insurance coverage decided by some computer in Chicago
This damn house burns down today we get 60% of the amount to rebuild
 
The policy needs to be clear that it covers full replacement.

This is normally less than the tax assessment of the home, because it typically doesn't cost as much to rebuild a home as the home would sale for. And very seldom is damage going to result in full replacement.

Even if a house burns a rebuild will typically not require things like utilities and the slab or lot preparation, that were required on the initial build.
 
We live in a location where the assessed value is typically well below the cost to replace. But the message is the same, "the policy needs to be clear that is covers full replacement." I would make sure you base replacement cost on current building costs rather than assessed values or what similar homes are selling.
 
Our insurance guy stays on top of it but wow, that insurance premium has been popping up the last couple of years.
 
mpaer said:
Got the annual house Insurance bill at the house I live in (not my house I pay half the Insurance and Taxes).
The Structure coverage is like 40% short of what Wake County tells me the house is worth
We are inquiring
But hey everybody
With housing values legitimately zooming the last few years Better check your insurance coverage decided by some computer in Chicago
This damn house burns down today we get 60% of the amount to rebuild
Click to expand...
Typically, the house appreciation lies in the value of the land, not the improvement. The improvement typically depreciates over time - although the can vary due to inflation in construction costs.
 
I switched from Erie to Farm Bureau over the increase last year. Farm Bureau for some reason also insures electric vehicles way cheaper than everyone else I got quotes from.
 
gtyellowjacket said:
Our insurance guy stays on top of it but wow, that insurance premium has been popping up the last couple of years.
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So I assume State Farm does absolutely not-unless you ask. we called today the guy looked at the Wake county tag number and is going to get back with us
 
Insurance is only for the improvement not the lot. Much of the recent increase in value is from the lot/location. Lenders typically attribute 25-35% of the total value to the site.
 
SmilingJack said:
Insurance is only for the improvement not the lot. Much of the recent increase in value is from the lot/location. Lenders typically attribute 25-35% of the total value to the site.
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In California, land is usually 75% of your home value.

My MIL lives near the beach in Corona Del Mar. The 1929 bungaloes go for $3-$4 million - a little more if it is just a vacant lot (so the buyer doesn’t have to pay the tear down cost).
 
We've got an independent agent (8 always prefer that).
Last year we switched over to Auto Owners. Hadn't heard of them but the coverage is good and the rates were solid. We have bounced around probably every 2-3 years.

The cost of insurance is asinine
 
Calheel said:
In California, land is usually 75% of your home value.

My MIL lives near the beach in Corona Del Mar. The 1929 bungalows go for $3-$4 million - a little more if it is just a vacant lot (so the buyer doesn’t have to pay the tear down cost).
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This is why we so often see an old run-down house sold, demolished, and a mc-mansion built in its place.

Land around where I live is up over $50K an acre, undeveloped. It cost a lot to develop land. So many houses have $100K or more in cost before they start building.
 
aGDevil2k said:
We've got an independent agent (8 always prefer that).
Last year we switched over to Auto Owners. Hadn't heard of them but the coverage is good and the rates were solid. We have bounced around probably every 2-3 years.

The cost of insurance is asinine
Click to expand...

Aaaand just got our renewals for the end of January
Auto went down by $400 a year. That's nice.

But homeowner's? That shit went up 40% from last year. I heard they were spiking but holy shit that's absurd. We've never filed a claim
 
aGDevil2k said:
Aaaand just got our renewals for the end of January
Auto went down by $400 a year. That's nice.

But homeowner's? That shit went up 40% from last year. I heard they were spiking but holy shit that's absurd. We've never filed a claim
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Shop it. Travelers for me went through the roof. Erie only went through the ceiling.
 
gtyellowjacket said:
Shop it. Travelers for me went through the roof. Erie only went through the ceiling.
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Yeah I already asked our agent to shop around.

Might still be competitive as it's only $2 more total than farm bureau quoted us last year (which was better than anything else)
 
aGDevil2k said:
Aaaand just got our renewals for the end of January
Auto went down by $400 a year. That's nice.

But homeowner's? That shit went up 40% from last year. I heard they were spiking but holy shit that's absurd. We've never filed a claim
Click to expand...
Homeowners insurance didn't hit us too bad... up 10%. Property taxes are rough though... up 31%.
 
SmilingJack said:
Part of it with the taxes and the insurance is the market is like 30-40% higher in value now. Dad always said "In spite of the cost, living remains popular!"
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Yea
When I was 30-35 I had a $600 dollar mortgage total-including escrow. Now thats purdy near Insurance and taxes in the triangular area
 
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