BHs:
Query regarding coverage on primary hone:
Current value of house- $300K (2005 built)
My current coverage for insurance are
1) Buidling Property Proection- $110000
2) Personal Property Protection- Reimb Provision0 $65000
Family liability Protection- $ 100000 each occurence.
Do u think this is enough coverage for house currently valued @ $300k?
Any insights, thanks in advance.
Regards,
energy 2258
Home insurance coverage query
Re: Home insurance coverage query
Buidling Property Proection- $110000
Shouldn't that be for 300k?
Shouldn't that be for 300k?
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Re: Home insurance coverage query
Shouldn't it be replacement value?rec7 wrote:Buidling Property Proection- $110000
Shouldn't that be for 300k?
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Re: Home insurance coverage query
You tell us. Can you rebuild the home for $110,000? Include debris removal and code upgrades. I don't think it should necessarily be for $300,000 because remember part of the value for the property is going to be the land.energy2025 wrote:BHs:
Query regarding coverage on primary hone:
Current value of house- $300K (2005 built)
My current coverage for insurance are
1) Buidling Property Proection- $110000
2) Personal Property Protection- Reimb Provision0 $65000
Family liability Protection- $ 100000 each occurence.
Do u think this is enough coverage for house currently valued @ $300k?
Any insights, thanks in advance.
Regards,
energy 2258
How much is your personal property worth? Can you replace everything for $65k. Check if your policy has replacement coverage or only gives you claims for depreciated value.
Liability, most HO policies allow you to have liability up to $500,000. It's usually cheap and I would go for $500k liability. If you ever get umbrella, they usually require you to max out the coverage.
Oh and consider whether or not you want coverage for listed perils or extended for "all perils coverage"
Homeowner's insurance doesn't typically cover floods or earthquakes. You may want to look into if those coverages are worth it depending on where you live.
Last edited by denovo on Sun Aug 16, 2015 11:14 pm, edited 1 time in total.
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Re: Home insurance coverage query
What did you pay to purchase the home? What is the value of the entire property, home and land combined? Is the value of the combined land and home, $300K or another price all together?
The correct coverage to have should be actual replacement cost and it should have an inflation rider attached to it, so that the cost of rebuilding is properly reflected in the insurance coverage values.
The correct coverage to have should be actual replacement cost and it should have an inflation rider attached to it, so that the cost of rebuilding is properly reflected in the insurance coverage values.
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Re: Home insurance coverage query
The house was bought for $260K couple of years ago. It is condominium/townhouse (It share walls with my neighbors). I dont know wether it is combined value of land & house. The belongings in house are basic (family of 3)
I wonder shouldnt the mortgage company also review my insurance as it is low than the current value.
thanks,
energy1420
I wonder shouldnt the mortgage company also review my insurance as it is low than the current value.
thanks,
energy1420
Re: Home insurance coverage query
Depends if the Condominium/Townhouse has a Master Insurance Policy and if so its coverages. Last Condo I lived in had a $1 Million dollar policy for each building (there were 20 buildings of 4 units each). Basically I personally only covered the Contents and the Liability from the exterior doors inward. Very cheap (about $120 per YEAR). Many people carry way too much insurance for CONDOs since the personal coverage (Replacement Cost Coverage and Liability Coverages) are SOMETIMES already covered by the Master Policy (which you are still paying for but just in a different manner through your monthly assessments usually paid to the Condo Manager) so do not "double cover it" you cannot collect double.energy2025 wrote:The house was bought for $260K couple of years ago. It is condominium/townhouse (It share walls with my neighbors). I dont know wether it is combined value of land & house. The belongings in house are basic (family of 3)
I wonder shouldnt the mortgage company also review my insurance as it is low than the current value.
thanks,
energy1420
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