|
Post by isabella on Feb 27, 2011 8:56:35 GMT -5
I hope this not a silly question .... how does one determine a fair replacement cost for homeowner insurance purposes?
I am in the process of getting quotes from several insurance companies and it seems they all have different ideas of what it would cost to rebuild. I have two companies that have a 30K spread in their quotes.
Do I need to call an appraiser to give an accurate value?
|
|
cheapgenes
New Member
Joined: Dec 18, 2010 13:17:13 GMT -5
Posts: 34
|
Post by cheapgenes on Feb 27, 2011 12:49:11 GMT -5
You don't need an appraiser. The appraisal would only be good for a short period of time anyway, and would probably cost you at least $300. You just need to know that your insurance company is telling you how much they would pay to replace your house. The market could be going up or down, which can affect things. Many builders aren't charging as much now because they aren't working. Your only paying the insurance company for a year anyway. Is it close to what it would cost? 30k difference is a lot on a 100k house. If the house is 500k- 530k not such a big deal. Also the lower number should cost less out of pocket for you. What's the chance they will be paying in the next year - not much.
|
|
Deleted
Joined: May 3, 2024 14:23:23 GMT -5
Posts: 0
|
Post by Deleted on Feb 27, 2011 16:13:26 GMT -5
You could contact a builder and ask what he charges per square foot. Then multiply it by your square footage.
I'd think an appraiser would be telling you what it would sell for, not what it would cost to rebuild. My house wouldn't sell for much right now . . . I'm guessing from comps that I would have to list at $139,000 (I paid $142,500 in 2004). Replacement insurance, though, is at $205,000. I don't think you could build a four bedroom house with a sunroom, finished basement, etc. for $139.000.
|
|
|
Post by isabella on Feb 27, 2011 16:29:54 GMT -5
agree cheapgenes about the probability of total loss ... but then if it did happen I'd want to be covered. I'm sure most people who have had a house burn to the ground didn't expect it to happen to them?
southernsusana contacting a builder is a good idea.
The county appraiser has my house at 399,500 but that should include land. I also don't think it would sell for that price currently either. So far three different insurance companies have replacement costs at 347, 350 and 378K. I think I'll try googling construction costs and builders for my area. Thanks for the help!
|
|
Gardening Grandma
Senior Associate
Joined: Dec 20, 2010 13:39:46 GMT -5
Posts: 17,962
|
Post by Gardening Grandma on Feb 27, 2011 16:39:44 GMT -5
Your county tax assessment should show the assessment for the house and land separately. The very minimum coverage should cover the assessment for the building. But the actual cost to replace is likely more. You can ask the ins companies what they figure the cost to rebuild would be (they should be able to give you a price per sq foot for a low end, a med end and a high end built).
Contacting a builder is also a good idea.
|
|