How much insurance coverage is too much or too little?

Sam Herrera, "Texas Insurance"
- 0.0/5.0
Contributions:3

July 12 2009 - US

Replies (2)

Caren Risley, "Caren Risley"
- 0.0/5.0
- (no reviews)
Contributions:2

In today's market where house prices are all over the board...even in the same neighborhood it is easy to see why people are confused about insurance needs. As both a Real Estate Broker and an Insurance Agent I get asked the question, "Why do I need to insure it for $150,000 when I only paid $90,000 for the house." The answer is that it does not matter what you PAID for the house, your insurance agent will run your house through a replacement cost estimator and will be required to use that figure to insure your home. Each insurance company has slightly different criteria in how they figure risk and charge accordingly. Have your agent run your home through several companies as the premiums can really vary. Make sure that you do a yearly insurance check-up to make sure that you are not over or under insured.

Flag content

August 25 2009

Ruth Stroup, "Insurance Agency"
- 0.0/5.0
Contributions:14

Caren gives great info. The insurance company cares about replacement cost, not market price. Here in Oakland, CA a 1500 square foot house can sell for as little as $100/sq foot up to $500/sq foot depending on location and finish quality. Replacement cost for these homes range from $180-$250/sq ft so some homes will insure above purchase price and others below purchase price.

Call a local agent and get a quote.