As a consultant to business clients I get involved in their matters concerning residential builders risk insurance. Recently I’ve been tearing the hair of mine out combating insurance agents as well as trying to get the clients of mine the very best offer on their home insurance. I’ve been tearing the hair of mine out because agents always want to over insure my clients’ homes.
o First, many of my customers appear to be over insured. This happens since they’ve been with similar insurance company for a long time and with an inflation guard added to their home insurance the replacement cost has been going up each year even if building costs are already going forth and back – these inflation guards only go up. First item on the agenda is get at the actual cost to rebuild the house. I’ve finally found a website that I think is fairly accurate if done properly. See the site listed at the bottom of the article — this particular site features a totally free cost estimator and also the very best part is it’s not sponsored by an insurance company and it is free.
o Second, a lot of individuals assume they’ve a lovely home — I know, I do. Nevertheless, doesn’t mean that it was created with gold in cases that are many. Most homes are made about similar in a little along with tract homes better in some custom areas. A lot of the semi custom homes have the extras in the bath, flooring and kitchen but not in the drywall, frame, air conditioning. You might see a few extras in the wiring (pre wired for sounds systems, alarms etc.) So do not inflate what you think the home of yours will cost to rebuild. Should you really have a custom unique home and then add this to the cost estimator – but think imported marble, glass walls, elevators, etc. Have this in mind, insurance companies in many states Don’t shell out the face amount of the policy, they pay to have the home rebuilt as it was before the loss. It’s up to you to be sure it’s not being over insured or perhaps under insured. In case you over insure the home of yours you’ll be paying premium for a product you won’t ever receive.