Is $225,000 insurance too much for this house?
My husband and I are buying a short sale house for $162,000. The property appraiser's website has the house appraised at about $143,000 & total appraisal at about $180,000. It's a brick home w/ vinyl trim. 4 bedrooms, 2 baths. Maple cabinets w/ Corian counter tops. Carpet/Tile flooring. There is about 1700 sq ft living space & about 2600 total sq ft. The home was purchased new in 2007 by the seller for $219,000. The bank says the insurance coverage must be no less than our purchase price of $162,000, but the insurance company recommends more coverage due to not being able to rebuild for the price of $162,000. Would I be overpaying at $225,000??
Asked By: Misty - 6/11/2009
Best Answer - Chosen by Asker
From your description of the house, I wouldn't be shocked if $225,000 was too low for that house. I copied and pasted the information below from the Nationwide web site. It should give you some insight as to why insurance companies want to insure your house for more than you think you should... More
Answered By: Joey M - 6/11/2009
Additional Answers (5)
Answered By: zeuz - 6/11/2009
You might look into a "replacement cost" rider on your homeowners policy. That way you can have less coverage but they guarantee to pay whatever it costs to rebuild to previous standards. It's usually a lot cheaper than being over insured.
Answered By: Beverly S - 6/11/2009
That's about normal. I know it's totally weird to have insurance coverage over the appraisal value. But those are separate. The cost to rebuild would be higher.
Answered By: Veritas et Aequitas () - 6/11/2009
OK, are you insuring the house for MARKET (aka, appraisal) value, for PURCHASE value, for LOAN value, or REPLACEMENT value... More
Answered By: mbrcatz - 6/11/2009
If you believe that you can replace your total living area for under 96 dollars a square foot then go ahead. The insurance compnay is going to have an inspector come out and lok anyway. If you under insure and have a loss they are only going to pay 80% of it. Go witht he 225000 you will be much better off.
Answered By: dirtyinjersey - 6/11/2009
$45/hour Part-Time Job Openings. Requirements: Must Have Computer.
Our Local Jobs Paying $16-$97/Hour-Get Hired Now. Apply Here
(89) Real Jobs Paying $21-$97/Hour- Available Now. Apply Online!
Over 483 Local Jobs Now Hiring In Your Area. $18-$87/Hr - Apply Today!
Other Career Questions
What is your current job? Why did you choose this job? What do you enjoy about your job? What do you dislike about your job? What would be your perfect job? Would you rather have this j...
Where are the jobs? Is productivity and globalization creating a permanent “recession” of jobs? My main issue is I am doing a paper for school and have no idea where to begin. I was hoping suggestions...
Hi ok im 19 and about to start college to do an acess course into a university. Ive been browsing through all the courses and im tottaly stuck! I thought politics but im scared ill end up with some r...
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.