Have you checked your house insurance lately?

[TrogL]

I just got the policy reminder for my house insurance. It's currently set for the value two years ago. It's current market price has pretty much doubled. If I had to replace it, I'd be living in a shack.

I've got a call in to my insurer.

I'm probably going to raise my coverage to the current price 'cause it should be all that much more but I can imagine some people being put in an awkward position.

Is your coverage up to date?

(no, I don't work for an insurance company)

[burythehatchet]

1. The value that has increased usually has nothing to do with the house but rather

with the land. The land won't burn. If your policy is valued on a "replacement cost" basis, you're probably fine.

[TrogL]

7. They said pretty much the same thing

They ran me through a formula and we decided to raise it by about $8000. I talked about taking it higher and they said not to bother 'cause the policy covers it if replacement value ends up being higher than the formula.

[Lasher]

2. Another thing to consider is the cost of replacing your belongings inside.

Typically insurance companies cover them on a prorated basis. So your 10 year old TV goes up in the big fire and you get 10% of what it would cost to buy a new one. You can get your policy changed to cover 100% of replacement cost but of course that comes at a higher premium.

[nels25]

5. Okay then I am confused

My home insurance is supposed to cover total rebuilding costs and total replacement of items destroyed.

Maybe I better pull out the paperwork and have a look see just to make sure.

[Lasher]

9. Might be a good idea.

One year I had my agent change belongings from prorated to full replacement cost. The next year at renewal time it had been changed back, without bothering to tell me about it. Good way to make it look like you're not raising somebody's rates every year.

[RB TexLa]

3. resist the urge to insure dirt

Part of the value of your home is the land. It takes a lot to have to replace the actual land your house is on.

[AlCzervik]

4. i redid all my insurance in March, this is going to sound bad but...

my neighbor's house burned down, thankfully no one was hurt but they lost everything and that got me to thinking about my own homeowners insurance, i hadn't updated or even looked at since july of 2000.

Btw, neighbor's house is about a month away from completion, they totally rebuilt it from the slab up.

[bellasgrams]

6. I don't know where you live but most places in the US are having

sales prices drop. In our sm-med sized town in IN our prices have drooped 12%. I noticed some people are saying don't insure dirt. The only way you would be insuring 'dirt' would be liability insur. in case someone would get hurt on your land. House insurance is house insurance. Premiums have raised drastically the past few yrs. causing people to get a larger deductible. Talk to your agent, about what your coverage is. Will you get replacement cost, what is included, etc. You might want to get a feel from a local realtor on your area's market values.

[nels25]

12. I was required to obtain insurance

as a condition for purchasing my house. I think it may be a state law in Wisconsin, not sure though.

Still I would want insurance to cover a loss just in case, I don't believe in not having insurance, be it health, auto, house or life.

course that is just me though.

:7

[AndyTiedye]

8. Construction Costs HAVE Gone Up Though

Don't insure the dirt, but make sure you have enough coverage to rebuild if you have to.

[elehhhhna]

10. Yes, and don't go w/ the cheapest policy, either...

READ up on it. Get flood insurance if there's any possibility you could flood in a "100 year rain".

I sell to insurance agents and they are always amazed that they do quotes for folks who insure the car for a premium of 1,200 bucks a year and BRAG about homeowners insurance that only costs them 600. Good luck when they have a claim.

HO ins. isn't jut about covering a big fire -- housefires are rare. It's for water damage -- you'd be amazed at the sources for water damage in the average house -- soot from a kitchen fire, storm/flooding, etc.

[dysfunctional press]

11. the replacement cost has pretty much nothing to do with the sale price

plus there's the value of the land to figure in.

the belongings you have inside the house is what you should be more concerned with.

[mnhtnbb]

13. Our house burned down last August. DO be sure to get replacement

value coverage for your house; check with a local contractor to find out current building costs.

AND be sure to accurately cover your contents--which is a separate amount--from the structure.
Take pictures, videos, keep receipts, and put them in a safe place (safe deposit box or fire safe box).

We are still haggling with the insurance company over the replacement value of our structure and we had to hire what's called a public adjuster to negotiate on our behalf with the insurance co.

[SoCalDem]

14. Good luck to you.. No matter how much you have it insured for

"replacement value" or not, they will fight you on every detail if you ever do have a catastrophic loss..

Better have receipts for all the "stuff" you have in it..and photos/video..and even then, do you think they will buy you a new tv, if the ones you currently are watching are "old"? Insurance companies make fortunes on "depreciation tables"..

Real Estate is in a state of flux right now, too, and the "value" of your home is kind of hard to pin down..

the folks in charge of writing the check are always in charge...buyer beware