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Shouldn't Homeowners Cover the Entire Cost of the Home?
June 4, 2019
Understanding Market Value and Replacement Cost
Let’s get right to the bottom line on this answer:
This article first appeared on quora.com https://www.quora.com/Im-buying-my-first-house-and-getting-quotes-from-different-homeowner-insurance-companies-I-noticed-a-lot-of-them-are-only-quoting-me-for-about-90-of-what-Im-paying-for-the-house-Should-homeowners-insurance-cover-the
- The Market Value of a home usually does not equal Cost to Rebuild (replace) the dwelling/building.
- The limit of insurance in this case, should reflect the cost to rebuild (replace)
- Location - Location can significantly influence a home’s value. For example, lakefront and oceanfront properties.
- Demand & Economic Factors - areas where demand for real estate outstrips supply and economic factors drive up residential values.
- Yes (in most instances).
- However, the limit of coverage on the dwelling should reflect the entire cost to rebuild (replace) the structure.
- In some instances, the purchase price (or market value) of the home may be more (or less) than the cost to rebuild (replace).
This article first appeared on quora.com https://www.quora.com/Im-buying-my-first-house-and-getting-quotes-from-different-homeowner-insurance-companies-I-noticed-a-lot-of-them-are-only-quoting-me-for-about-90-of-what-Im-paying-for-the-house-Should-homeowners-insurance-cover-the
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“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
