home insurance dwelling coverage
Home insurance?
I'm not sure how much home insurance coverage should I have for the house I bought 2 years ago. The cost of the house including the land was $ 96,000. But that includes the price of land, so now I have to renew the insurance policy home and realized that maybe I should reduce the amount coverage of $ 96,000 to around $ 80,000. The amount of rental housing, insurance is the price you paid, $ 96,000. But if something happens and the house needs to get the reconstruction, the cost of construction should not be as high as $ 96,000. I currently owe $ 70,000 mortgage. Do you have any suggestions? I do not know if I can ask the insurance agent to reduce the coverage of housing. But I'm expecting a way to save money on home insurance. Could anyone give me some advice? Thank you.
OK, the market value has nothing to do with the insured value, 95% of the time. You need to insure your home for the cost of rebuilding. I have no idea of what the area of your home, but on average, is $ 150 to $ 200 per square foot, the cost for reconstruction. So if you think $ 96,000 is too much, That means your house is, what, less than 500 square meters. In a bedroom, kitchen, bathroom, all very small. A matchbox of a single floor. What you are to do is call the agent. Ask them to leave, and calculate the replacement cost. A little secret in the industry – it could actually save money if the value increases housing. More insurance claims happen in the homes of lesser value. . . for most insurance companies have a serious "threshold rate" – Example, if you insure your home for $ 99,000, is $ 400 a year, but if you say $ 110,000 is $ 300 per year. That might be the case. Moreover, most standard insurance companies have a "Minimim" level of coverage – you definitely do not want to write insurance in a house of lesser value $ 90,000, or in some cases $ 110,000, because they have more claims. The BEST way to save on your insurance, is to talk to his agent, and increase your deductibles $ 1,000. Make sure you are getting all the right discounts. Keep the house, and upgrade all major systems prior to any of them are aged 20 (plumbing, heating, electrical, roof).
