Homeowner's Insuarnce questions

[WRM20]

Originally Posted by oceangaia

Hmmm, in my experience you don't have a choice. The dwelling coverage will be based on rebuild per sqft cost. You can't get coverage for more or for less. Years ago I was with State Farm and my home appraised at $180k but the insurance dwelling coverage was $225k. I thought I was being messed with but they would not adjust the dwelling coverage. I argued with two agents over several weeks. A few years later switched to Allstate. Same exact thing. Hazard insurance is based on cost to rebuild. If house burns down it's current market value is irrelevant, only what it costs to rebuild. Last year on a new house went through the same thing with yet another insurer.


The above is all based on having a mortgage and a lender lien.

The cost, or appraised value, of your house is irrelevant to the amount of insurance you need. The amount of insurance you need has to be based on the cost to rebuild a similar house in the same location, with the same finishes and options. In many cases, that's going to be more than the selling price or appraised value.

I had to argue with our last 3 insurers to get the replacement value per square foot high enough to cover a rebuild. No way we get our house replaced for the $80 per sq ft one company said was the right amount.

[a_guerrajr]

Originally Posted by WRM20

The cost, or appraised value, of your house is irrelevant to the amount of insurance you need. The amount of insurance you need has to be based on the cost to rebuild a similar house in the same location, with the same finishes and options. In many cases, that's going to be more than the selling price or appraised value.

I had to argue with our last 3 insurers to get the replacement value per square foot high enough to cover a rebuild. No way we get our house replaced for the $80 per sq ft one company said was the right amount.

$80 ??? Maybe 10+ years ago for a builder grade home.
It is definitely in 3 digit territory right now and doubt it will ever go down.

[mojo101]

IF YOU LIVE in a subdivision,does the board have something to say about your new house?
YOu may have to submit a plan for approval

[notkim]

Originally Posted by mojo101

Are you a Center Point Energy customer?
If so,Homeserve offers insurance for your heater,exterior water service line, exterior septic/sewer line,for $5,6,9 dollars each per month.
see the pipes from your house to the street if anything goes wrong is your responsibility,not the city.
How old is your water heater?
Does Woodland flood?
if so you may need FEMA ,it costs me $487/year-building $200k,content $80K,deductible $1250.
It will not insure electronic if you are using your basement as an office.
One could end up spending so much on insurance -house,car and personal,there is nothing left for food !

Thank you for bringing up the Center Point option by Homeserve. I recalled being asked if I wanted to add that service and I had declined because I was ina rush to add the utility to our name. We were in the closing stage on the house. I just now went and checked my Center Point a/c and see that there are these plans:

Heating System - $13.99 per month (Up to $1,500 in annual repairs)
Cooling System (1 Unit) - $8.49 per month (Up to $1,750 in annual covered repairs)
Cooling System (2 Units) - $21.99 per month (Up to $1,750 in annual covered repairs per cooling system)

There is a whole big list of what is covered and what is not. My first concern right now is the original HVAC system which is 25 years old. I know that at some point I will have to get it replaced. Do you think Homeserve/Center Point will replace it in the near future without giving me a runaround like those Home Warranty companies give?

[notkim]

Originally Posted by a_guerrajr

Cool, most carriers should be fine with a 5 year old roof and should fall in RCV.

Double check on http://moco.maps.arcgis.com/apps/Map...598d0c2553a92f to see if the property is on a flood plain and how it was affected during Harvey. This will let you know if you need to tack on flood coverage.

If you can't if the mechanical items have been refreshed then I would add equipment breakdown. If it still has the original water heater then it is on its way out. I'm sure the A/C has been re-done, and if not be prepared. Even if it was refreshed halfway through then protect yourself. You don't know if they did a nice system or cheap'd out. Coming from someone who had to drop 8k on a new a/c system 2 months after buying a home, I warn you with it being a reality.

Insurance companies will go based of what it would cost them to have a GC come in and build your home.
Say you have a huge fire and 70% of the house is shot and has to be redone. A GC is going to have a rate of anywhere from $100 to 150$ per sq ft. That of course will vary by who you hire, are you live in, and current market conditions. If you live in Sterling Ridge in a nice area, GC's won't come in asking on the lower end, they'll want some good $ and granted you also expect quality work. Anyhow, let's say our home is 3,500 sq feet and a two tree's fall on it and some how that causes a fire and the house is a complete loss. If you take let's say $130 per sq feet, then you get $455K for them to re build your house. All insurance companies use software that helps them use a median price for the going rate. Some fluff it up to cheat you for more premium money. In the end, you want to insure it for what it would cost to redo in a worst case scenario.
When you shop, they typically ask the finishes, the materials, etc so they know if you have a basic builder grade home, or if you have granite, expensive flooring, custom cabinetry, etc. It is also no linear to the cost or market value of the home. They go based on actual cost for trades to work on the home.

Haven't heard of them, but there are a ton.
I'm switching from Allied Trust to Nat Gen, whom is also based out of NC. Never heard of them prior to this recent quote.

Thank you for your detailed reply. So here are a few things about the house:
- 25 years old in Sterling Ridge (3,500 sq.ft)
- Roof, Water Heaters, HVAC (1 unit) are all 4 - 5 years old. The other HVAC is original to the house so it is 25 years old and I know that sooner or later we will have to replace it.


One of the insurance brokers told me NOT to add the "Equipment Breakdown" endorsement to the HO3 policy because let's say if the HVAC breaks down and I file a claim to replace it, they will but then my insurance premiums can go up on my policy next year. She said it is the same as Auto insurance - say if there is a chip on the windshield, then she said to get it fixed out of pocket otherwise ins. premium goes up. But then I am thinking what is the point of paying such heavy premiums if one cannot use it without the fear of premiums increasing? I understand the windshield chip is a $50 fix, but you get my point right?

What she suggested is that I get a Home Warranty, BUT I do not want to pay $600 - $800 per year for a Home Warranty and get a run around from them. I have heard nothing but horror stories about Home Warranty companies doing everything in their power to replace big-ticket equipment.

[a_guerrajr]

Originally Posted by notkim

Thank you for your detailed reply. So here are a few things about the house:
- 25 years old in Sterling Ridge (3,500 sq.ft)
- Roof, Water Heaters, HVAC (1 unit) are all 4 - 5 years old. The other HVAC is original to the house so it is 25 years old and I know that sooner or later we will have to replace it.


One of the insurance brokers told me NOT to add the "Equipment Breakdown" endorsement to the HO3 policy because let's say if the HVAC breaks down and I file a claim to replace it, they will but then my insurance premiums can go up on my policy next year. She said it is the same as Auto insurance - say if there is a chip on the windshield, then she said to get it fixed out of pocket otherwise ins. premium goes up. But then I am thinking what is the point of paying such heavy premiums if one cannot use it without the fear of premiums increasing? I understand the windshield chip is a $50 fix, but you get my point right?

What she suggested is that I get a Home Warranty, BUT I do not want to pay $600 - $800 per year for a Home Warranty and get a run around from them. I have heard nothing but horror stories about Home Warranty companies doing everything in their power to replace big-ticket equipment.

Last I heard Texas was exempt to policy increases based on claims. You may get flagged as a high risk if you file for smaller items.

In agreement, though as things like water heater and a/c are just maintenance of owning a home. Set a side a cushion or just be prepared to swipe the card or get it financed. I would only do a claim if it is major and is significantly more than the deductible.

[mojo101]

if your uitility company is Center Point Energy ,you can get coverage with HomeServe thru Center point-
I got a new water heater .

[mojo101]

if you give them your auto insurance business,you get a small discount