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Old 07-24-2008, 01:19 PM
 
45 posts, read 344,265 times
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I am shopping around for Home Owners insurance. Should I be insuring for the total value of the house (Land + Improvement) or just the value of the Improvement (without land value)? I am told differing versions by multiple insurance companies. Appreciate any input.
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Old 07-24-2008, 02:10 PM
 
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It should be based on replacement cost. If your house was to burn to the ground what would it cost to replace it.
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Old 07-25-2008, 07:46 AM
 
415 posts, read 1,718,428 times
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We insured slightly over appraised value (land and improvements) to account for replacement costs. However, the agent got the wrong value and a high deductible, which cost us dearly when we had to replace the roof in the first year.
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Old 07-25-2008, 09:57 AM
 
Location: DFW, TX
2,935 posts, read 6,715,978 times
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You can't insure the land value... but it's more than just the value of the house. If you had a tornado knock down the house, you have to have demo crews pull down the house and dispose of the materials somehow... then rebuild... so it's more expensive than buying a home down the street.
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Old 07-26-2008, 04:12 PM
 
175 posts, read 482,973 times
Reputation: 180
Default Grainer is right

I am a licensed agent in Property and Casualty. Your home should be valued on the Replacement Cost. Now bare in mind that replacement cost is higher on an existing home. There are a lot more costs inherent with re-building a home. You are not able to insure your actual land however. Now you have other structures such as your fence, deck etc...that should be covered as a percentage of your home owner policy.
When you are shopping for insurance you will get the better rate and save some money if you bundle your insurance. In other words home and auto. Also most homeowner policies do NOT cover flood or earthquake. The carrier giving you the quote can check to see if you are in such a zone.
Wherever you decide to buy welcome to Texas!
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