Quote:
Originally Posted by twingles
Exactly. #1 in particular is misunderstood by many people and leads to people being over insured. It is impossible to say one is paying too much or whatever without an apples to apples comparison. Even where you live can affect your rates. And with HO you're probably not making claims unless disaster strikes and then you do not want the fly by night operation.
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There are policies available (I know through Erie, but possibly others) where you may pay for X amount of coverage (in OP's case lets say $700k) however it is a "guaranteed replacement" plan so if it turns out costing more, they will pay more. The catch is that they determine what the estimated base value is (they put your homes info into a formula which pops out what coverage you will pay for).
I agree with others that a higher deductible is worth it given insurance companies will raise your premium based on claims anyway.