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Basically, those are their rules. You can freely switch companies if you don't like it, right?
Could you suggest of any other insurance co., besides NJM, that would let you insure for an amount of your own choosing for my search was not a successful one? Thanks.
Could you suggest of any other insurance co., besides NJM, that would let you insure for an amount of your own choosing for my search was not a successful one? Thanks.
I've had NJM for 18 years so I can't answer that, sorry. How many companies have you gotten quotes from?
I thought I have this problem and glad see a lot of people the same problem.
I purchased a 550k insurance, and they came to look at the outside of house and they determined that I need a 780k of coverage for it. I was like wtf. I know I have a nice house but it is still not a million dollar house, so there is no freaking way that it cost a three-quarter of a million to rebuild it.
I called them and they lower it to my purchase price.
It's amazing that it cost 650K to build a new home. I'm not a rocket scientist but shouldn't that cost build a 5,000 sq. ft. house because you own the land?
It's amazing that it cost 650K to build a new home. I'm not a rocket scientist but shouldn't that cost build a 5,000 sq. ft. house because you own the land?
Depends on what you're building. If you're building a simple, boxy, vinyl-sided house with simple finishes, it'll cost nowhere near that amount. The OP is talking about replacing an older home, so if you add in some decent architecture, large windows, wood or brick siding, wood floors, large moldings, etc., the costs start adding up quickly.
Depends on what you're building. If you're building a simple, boxy, vinyl-sided house with simple finishes, it'll cost nowhere near that amount. The OP is talking about replacing an older home, so if you add in some decent architecture, large windows, wood or brick siding, wood floors, large moldings, etc., the costs start adding up quickly.
I guess that's a Jersey price. I've recently looked at new houses that were 2,000 ft. in Florida for 149K and that included the land.
First idea: Years back, I owned an old mansion and had a hassle with my insurance company about this. I saved a ton of $$$ by obtaining a policy for "actual cash value" as opposed to "replacement cost." (MY ACV was about $600K whereas RC was around 1.5M!)
Second idea: Regarding the cost of the premium, consider "voting" with your feet!
If you're a member of a labor union, get a quote from the union's preferred insurer. I have found greater flexibility and desire to please the customer in this relationship because if the insurer doesn't keep its customers happy, the union will switch providers. That could mean a lot of lost business for the insurer.
Some religious and civic organizations have similar relationships with providers of business services such as insurance.
The same holds true if you're an employee of a large corporation. Chances are your employer has a relationship set up with an insurance provider. We save a lot by using this option, then "bundling" our homeowners and auto, just like bradykp suggested.
I believe the secret is to find a "hungry" company. Frankly, some insurers are well-fed and don't want the business! Their rates are placed in the stratosphere to dissuade you from choosing them. Find a company that wants your business.
Why do so many insurance companies ask you "what insurance is right for you?" Looking through other insurance websites, the general feeling is that the "Guaranteed replacement" policy is some sort of premium package and that there are others that can be purchased.
Are there any that actually practice what they preach? Or, rather, what they post?
How can they force you to pay for insurance that you are not willing to pay for? You get what you pay for, but why do you have to get what they say you have to pay for?
Depends on what you're building. If you're building a simple, boxy, vinyl-sided house with simple finishes, it'll cost nowhere near that amount. The OP is talking about replacing an older home, so if you add in some decent architecture, large windows, wood or brick siding, wood floors, large moldings, etc., the costs start adding up quickly.
Exactly (KC's hubby).
Plaster walls alone doubles the estimate price. Here's the thing, they make it like you have to pay someone to rebuild using a trade that is at a premium now, even if it is no longer the BEST thing to do anymore.
Although I really like custom hand-made woodwork, paying a premium to reconstruct it over what you could get by BUYING pre-existing craftsmanship is unforgivable.
If you are not allowed to insure for more than something is worth, why are you forced to insure for 25% more than an ESTIMATE of a fictional reconstruction? Also, if you are forced to buy $XX in insurance, why do you have to submit receipts if your property is lost? Give me what I paid for and if I can build it cheaper by working on it myself or finding better deals, let me keep the $200,000 you overcharged me for for XX years....
[/rant]
Sorry.
Thanks for the info Bob. That IS what we have been hearing, but it is NOT what we like. We are looking for something to go with or some basis to contest these charges for.
We want to insure this house for what it is worth, not what someone tells us we should insure it for.
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