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I would sugeest that nayone have homeowners that s cheaper be sure and read the poicy . Then see the rating of the insurer because all policies and all comoanies are bot the same as people in the hurricane areas found out sudenly.Make sure if it has a high deuctable and is not repalcemnt coverasge you can afford your share of replacement cost.I have seen epople who share of the repalcement and the deductable was higher than the cost of building the home 20 years before.
My house isn't worth a whole lot, plus it's paid off. BUT the idea of a fire, tree falling or flooded basement scares me....no way could I afford extensive repair or rebuilding. Insurance is about $600 a year, worth every penny for the peace of mind.
Years ago in another house, I had a detached brick garage on an alley behind the house. A drunk driver in a stolen Jeep Cherokee sped down the alley and took out the entire corner of the garage. State Farm sent someone out, told me what they would pay and cut me a check within a week. A friend of a friend was a bricklayer/masonry guy and did the repair using leftover brick from another job that happened to match mine well. I came out well ahead on that...enough to pay for a few years worth of homeowners insurance.
You could look at it this way-if your house burns to the ground, which side of the check do you want to sign to by new clothes, furniture, dishes oh and rebuild the house--the front of the check or the back???
If I divide how much it would cost to rebuild our house, not taking into consideration buying clothes, etc. if our house was a total loss, we would have to pay premiums for 314 years before we paid more in premiums then the cost to rebuild our house.
"If I divide how much it would cost to rebuild our house, not taking into consideration buying clothes, etc. if our house was a total loss, we would have to pay premiums for 314 years before we paid more in premiums then the cost to rebuild our house."
Therein lies the difference. Where I live, the cost of the policy starts to approach 2% of the cost of the dwelling per year. Remember that a lot of the value of a property is in the LAND and location and not the dwelling. So while your 314 year figure works for you, a 50 year figure would closer fit for me, and that is only in the rare situation where there a total write off.
I cannot stress texdav's advice strongly enough. READ YOUR POLICY. Read the ratings of the various companies. Some policies are not worth the paper they are printed on. If you see phrases like "no coverage for acts of God", or "no coverage during civil unrest" or any such weasel word phrases, either demand a rider or bail out.
Well, pray nobody ever gets injured on or around your property, or even bit by your dog. Homeowners insurance covers things besides your house and furnishing.
"If I divide how much it would cost to rebuild our house, not taking into consideration buying clothes, etc. if our house was a total loss, we would have to pay premiums for 314 years before we paid more in premiums then the cost to rebuild our house."
Therein lies the difference. Where I live, the cost of the policy starts to approach 2% of the cost of the dwelling per year. Remember that a lot of the value of a property is in the LAND and location and not the dwelling. So while your 314 year figure works for you, a 50 year figure would closer fit for me, and that is only in the rare situation where there a total write off.
I cannot stress texdav's advice strongly enough. READ YOUR POLICY. Read the ratings of the various companies. Some policies are not worth the paper they are printed on. If you see phrases like "no coverage for acts of God", or "no coverage during civil unrest" or any such weasel word phrases, either demand a rider or bail out.
The ISO standard policy does cover acts of God, lightning, hail, wind, it does not cover floods, sink holes or earthquakes and a few other things unless you put a rider or endorsement on them. No policy in the US can have lower coverage then this-only better. I agree that having a good insurance company is VERY important as is understanding your coverage.
As for your 50 year, your premiums are very high so yes, that does make a difference. Factor in everything else it covers in the event of a total loss and you will still come out ahead. Now, you may never make a claim in your life but that is the gamble you take with insurance. I would still rather have too much insurance then not enough any day.
My house isn't worth a whole lot, plus it's paid off. BUT the idea of a fire, tree falling or flooded basement scares me....no way could I afford extensive repair or rebuilding. Insurance is about $600 a year, worth every penny for the peace of mind.
Years ago in another house, I had a detached brick garage on an alley behind the house. A drunk driver in a stolen Jeep Cherokee sped down the alley and took out the entire corner of the garage. State Farm sent someone out, told me what they would pay and cut me a check within a week. A friend of a friend was a bricklayer/masonry guy and did the repair using leftover brick from another job that happened to match mine well. I came out well ahead on that...enough to pay for a few years worth of homeowners insurance.
If your basement floods due to rain or a flood, your standard homeowners policy does not cover that. If you have sewer back up and have that endorsement then you will have coverage-just something to check into.
I carry an earthquake rider (35 miles nw of Boston, and it is a major earthquake potential, believe it or not) and with that, my annual premium is about $900, for replacement and contents. My house would sell on the market for maybe $350K, and the half-acre is very valuable.
I wouldn't dream of going without insurance, although I am not in an extreme weather zone or flood potential of any kind. Too much can happen.
And should I? The premium is $860 and I own my house outright. I have to decide soon, as it's due on the 24th. Also, is there a 30 day grace period for this? I sort of hate to be without it, so I'll probably pay it, but just curious. Thanks in advance.
If you own outright you have no obligation to insure it but that doesn't mean it's a good idea. $860 seems high, shop around. See if you can put your Car and Home together that'll save you some money
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