 What type of Life Insurance should my husband and I get. We are both 23 and just purchased a home.? |
| My husband and I are both 23 years old and we just purchased a home. We have been under pressure from our Insurance Agent and our Mortgage broker to obtain Life Insurance in case something happens to ... |
|
 Should I pay an employee who has stolen from me? |
| If an employee stole from me dose that employee have the right to be ... |
|
 Car Insurance/homeowners insurance? |
| Is Response Insurance a good company? I'm looking to lower my current rates with American Family. Response gave me some really good rate quotes.... |
|
 If I damage my neighbour's property, why does he have to claim on his insurance instead of me? |
| I left a tap on in my kitchen and the water seeped down into the flat below. Although it was my fault, my insurance company says that he has to claim on his insurance. This seems most unfair since ... |
|
 How come no one has anwered my yahoo question? |
| i asked a question yesterday regading office managers...and i got no respond.....i was saying that am an office manager for a chiropractic office and i get paid only 10.10 and get NO benefits (sick ... |
|
 Can I claim a broken toe off my own house insurance? |
| I was getting something out of the kitchen cupboard and knocked over a large cooking dish, it landed on my big toe and broke the toe. Can I claim off my own insurance? We have fully comp cover but ... |
|
 Insurance question: Uninsured car in accident? |
| My son (17) had permission to drive his uncle's car to the store when he was staying at his house. My son is in an accident and the car is totaled. I now find out his uncle does not have ... |
|
 Health insurance help.? |
| So my father canceled our insurance last year and we have no health insurance. I know that this leaves us in a very bad spot. Im looking for some advice as to what me and my family should do. My mom ... |
|
 Should the government pay for flood damaged houses in Yorkshire? |
| I'm talking about irresponsible people who chose not to buy any home insurance. I don't see why the tax payer should bail them out when they could have insured themselves. Yes, some will be ... |
|
 If I live in Atlanta, GA, should I get earthquake insurance offered by my insurance company? |
| My insurance company, State Farm, is telling me my homeowners policy does not cover for earthquakes. This additional coverage isn't cheap, and I'm not sure whether I should get it. I am ... |
|
 What obligations do you have to current employer when searching for a new job? |
| should I inform my boss that I am interviewing for a new job? I went for an interview and my boss found out. He says I had an obligation to him to advise him I was job hunting?... |
|
 Can police tell if your insurance is fake........................ |
| i have this crazy friend who doesnt have insurance anymore and is thinking about making a fake insurance card but just putting new dates over the old ones and photocopying it. he says he wont get ... |
|
 Will full coverage car insurance cover.....? |
| My dad has a full coverage policy on his car, but sometimes I take it for a spin. If I were to be in an accident, would the car be insured and the expenses paid?... |
|
 Advice please for selling a diamond ring? |
| i had it valued for insurance purposes 10 yrs ago, i want to know how much i should sell it for, insurance value is £7500.00. one dealer in diamonds offered £1500.00, is he taking the mickey or ... |
|
|  |
Vadalia | Saying "no" to the homeowners insurance agent? |
I recently bought my first house and have a question about the insurance. When we first got the policy, it had a value for the home about $30,000 more than what it was worth (which is $66,000) But then we were contacted by our agent who said the original square footage (which apparently they go by instead of value) was different from what the appraisal said it was.
Now they want to up the premium $187 a year and force us to pay for a policy that's value is double what the house appraises for. I don't think it makes sense to pay over $700 a year to insure a $66,000 home for a replacement value of $136,000. Can I say "no" to the insurance agent? |
 |
 
K F
|
You must have homeowners insurance if you have a mortgage, but you can shop around....Please keep in mind you really need to have what is called Total replacement on your policy. you never exspect a fire, we didn't and we lost our home in 1999 ,we had a friend who told us about the total replacement cost and we made sure we had it...we were able to rebuild and get back almost what we lost as far as the house went and it was rebuilt 100 times better. check your policy, if you don't do anything else today check that, if it's not there is worth adding it in doesn't cost that much more to have it on there. Good Luck |
|
Mikhail Portnov
|
Home insurance is required at the close of escrow. Without it the bank will not release the money.
If your insurance lapses somehow the insurer is required to notify the lender and the lender would buy an insurance for you at your expense if you do not get one on your own.
The bank wants to make sure that if the home gets fire and you are not able to pay the mortgage then they can go and sell it to get their money back. So, for the bank it is critical to have the home REBUILT, which has nothing to do with its market value. It is also important to you, but you might care or not care about it. Bank is different - it always cares about the money.
Multiply the square footage of your home by average construction cost in your area to get the rough estimate of the replacement cost.
To pay less make sure you insure your cars and the home with same company. For a homeowner insurance the bill is normally a package deal. That way you can save 15-20% on both. |
|
mbrcatz
|
Wait a minute - homeowners policies are on a COST TO REBUILD basis. So you're saying, the cost to rebuild your building is about $66,000? Or you only want to insure it for MARKET value?
A market value policy costs about 3X what a replacement value policy does. So it's cheaper for YOU to insure to rebuild. Now, if you have a house that's about 15 feet square, then $66,000 is about right. But I bet it's higher.
When you talk about the house "appraising", that's MARKET value. The insurance company can't say, oh, well, you have a kitchen fire, the kitchen is worth about 30% of your house, your house is worth $66,000, sure the fire damage is $40,000, but we're only paying the MARKET value of the kitchen. Nope, they have to FIX it. So they want to insure on a REBUILD policy.
If you don't want a REBUILD policy, you'll have to get a MARKET VALUE policy. Now, come claim time, I promise you'll be MIGHTY unhappy with the payout, because it won't FIX it, and it won't MATCH anything else, and it won't be LIKE KIND AND QUALITY. Plus, the market value policy WILL cost you about 3X as much - if the homeowners at $80,000 is costing you $200 a year, a market value at $66,000 will probably run you around $700.
So it's up to you. But you can't have it both ways - and depending on if you have an independent agent, or a direct writer like State Farm or Nationwide, they won't be ABLE to get you a market policy.
They should have explained this to you when you bought the policy - the difference between MARKET value, and REPLACEMENT or INSURANCE value. That's their fault. |
|
mommy03
|
The appraiser or appraisal has nothing to do with the amount of coverage on a home. The insurance company is strictly covering to rebuild the home whether it cost more or less than what you paid for it. As the agent said earlier you can lower your coverage but you pay more for less so what is the point? |
|
Guess Who?
|
yes, but shop around elsewhere. |
|
zyberianwarrior
 |
mine is almost $1,000 a year for a 125k home so quit crying. Its better to have more coverage than not enough. |
|
kid
 |
yes, just tell them what you want |
|
Good♥Gyrl
|
If you feel you're being forced into something, you can always say no. However, consider whether or not if, by going to something that just covers the mortgage, that you'll have adequate coverage. Are you covering just the dwelling, or the contents as well? This will make a difference in premium. Read your policy closely to determine what your coverage and limits are, forget about just considering the mortgage and the replacement cost indicated in the policy. Furthermore, and most importantly, you'll want to make sure that you're insured for an adequate amount to REPLACE your dwelling...what? Do you want to be homeless if, for example, your house was burned to the ground? I GUARANTEE you that you won't rebuild today for 66k, unless you're getting a two room mobile home. |
|
MissV
 |
The agent's opinion cannot override the appraiser. The appraiser is licensed. Contact your State's Dept of Insurance for an opinion.
If it's an older house with features that would cost twice as much to replace with today's materials, that's possible. However the Commissioner's opinion should be sought immediately. |
|
MARK S
|
Insurance companies don't care about the value of the home. They are concerned with how much it will be to rebuild the home. That same home could have a value of $750,000 here in Southern Calif but roughly be the same to rebuild it. So the dwelling coverage on your policy is the amount to rebuild, not the value of the house.
And yes, depending what state you're in the insurance company can force you to increase the coverage within the first 60 days of the policy. Or you can cancel and go with another company. But most likely you'll encounter the same situation. |
|
lost_but_not_hopeless
 |
You can seek another appraisal at your own expense .. or ask that they respect whatever is documented in the paperwork at closing..
It is very typical for any homeowners policy to be for 30,000 or so more than replacement value based on the simple fact that all personal possessions in the home are also covered by most.. is the extra $15 a month really worth the hassle?
As a reference, I pay $492/year based on a replacement value of $142,000. But I am also covered by the same insurance comapny for everything .. home/auto/life .. so that seems a little high.. but still reasonable. Look into the possibility of a 'blanket policy' to reduce total insurance costs. |
|
a-mac
 |
I would say "buh-bye" to the insurance agent and get someone that you trust. Insurance is important... your home is important... get someone good, local, and trustworthy! |
|
fighting saints
 |
Since it can't be said enough. I will repeat what Mikhail, mbrcatz17 & Mommy03 said. Consider this a chance to learn about how insurance works.
The homeowners policy has NOTHING to do with the value or appraisal of the house. It's only purpose is to pay to rebuild the house in the event of a total loss. Normally, there is a BIG difference between value and rebuilding cost. The value of the house has many factors that effect it's value, but rebuilding costs stay pretty consistent.
Odds are the agent wasn't trying to rip you off. The $136,000 replacement cost comes from figuring the cost to rebuild per square foot of home. Depending on what part of the country and the type of home the agent will figure $65 to $135 per square foot to figure the replacement cost.
I would suggest that you talk to the agent and ask them how they came to the 136K. You have the right to know how they arrived at the 136K then you can do your own research to confirm the figure. That way you will be informed and more comfortable with what the agent is doing.
Trust me you do not want to be under-insured if you have a total loss house fire. I have seen this happen and it isn't pretty or fun. |
|
DJFresh
 |
Yes you can, should and must.
Call 1-888-333-home and ask for ext. 17
My friend Mitch will help you out, and get you a better rate for better quality ins.
Also, buy a fish tank, they are fun. |
|
Angie
 |
You can tell them "no". You may also want to take this opportunity to look for a new insurance agent/company. Not everyone's rates are the same and you may be able to find one that's more affordable. You don't have to wait until the end of the policy term, it can be done anytime, and you get a refund for the unused portion of your premium. |
|
anthonyky
|
You must have adequate cover per the mortgage holder. They will tell the minimum coverage you can have. |
|
Jack Chedeville
|
If you financed our house, your lender will tell you the minimum amounts you need to cover in your insurance policy. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
17 | 10 minutes(s) ago
| | | |
17 | 42 minutes(s) ago
| | | |
17 | 48 minutes(s) ago
| | | |
17 | 1 hour(s) ago
| | | |
17 | 5 hour(s) ago
| | | |
17 | 8 hour(s) ago
| | | |
17 | 9 hour(s) ago
| | | |
17 | 1 day(s) ago
| | | |
17 | 3 day(s) ago
| | | |
17 | 5 day(s) ago
| |
|
Homepage 
Financial
Forum 
Insurance 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
