Homeowners insurance quote (how much, cost, building, better)

[notghinsaw]

So I requested a quote from a broker and he came up with a quote which I'd like to understand a bit better.


So currently property is assessed at X where X = A(dwelling which is 70%) + B (land which is 30%). The agent got back to me and provided be a quote where the property is actually X+20% based on his calculations.



Now do I have to go with this or should I insure is for X, not X+20%? I don't want to insure land because what can happen to it? Should I just insure for assessed dwelling value adjusted to current market or should I go for with what the broker quoted?

[adjusterjack]

Neither the assessed value for property taxes, nor the market value of the home has anything to do with the cost to rebuild it if it is destroyed.

You're right, you don't insure the land.

The cost to rebuild your home is likely to exceed the property tax assessed value and, in many parts of the country these days may be less that what you can sell it for.

Use the following Replacement Cost calculator to determine how much to insure your home for and see how close it comes to the agent's estimate. I have used this for my home and have found it to be comprehensive and reasonably accurate. Not far off from what my insurance company estimates. Insurance companies use similar calculators.

https://costtobuild.net/

There is also a garage calculator if you have a detached garage building.

[Nodpete]

Remember that if your house burns down, they have to remove the rubble and clean up the area before they can start rebuilding. That's one of the reasons that replacement cost is more than the accessed value. Plus there is the cost of you relocating while the house is being built.