Coverage for displacement might be a thing to look at here too, since renting an apt while your house is being repaired isn't cheap. How much do you save paying them in lump sum at the beginning of the year? She never responded. They'll ask questions like whether you have upgraded appliances, whether your floors are wood or carpet, etc to help form that number. Your current assets are also important to consider, along with any potential for those assets to increase in value. I've received the same, if not better, coverage for a much lower rate going through a broker than calling Geico or another big company. Most mortgage lenders don't even tell you that it's not mandatory to lump that into your mortgage. What is standard in these cases? Insurance paid out for a repair...but no company in the area does "repair" they only want to install new complete fences. In this example if you got home owner's insurance to cover $750k you would simply be overpaying. For instance, my agent originally quoted me the "Gold Package" which protected a lot of shit that wasn't applicable to me (like having a boat in the agarage, I don't have a boat). This subreddit gets a lot of spam and often good posts get caught in the filter. Conditionally approved yesterday - today problems with my employment history? The only advantage is that you pay one monthly payment and don't have to worry about additional bills but you wind up paying so much more in interest. Ask for quotes for both scenarios if that applies to you. They both do the same thing. Most people are familiar with auto insurance, as you're required by law to have it in … For example in a hot market a house might sell for $750k but the cost to rebuild it new might be $450k. That's what I did. Press J to jump to the feed. However, the minimum coverage requirements can vary. If your home is worth more than $250,000 and you’re in a high-risk area, you may actually need both types of coverage. However, the person who prepares your quote will give you a number of what they believe total loss coverage should look like for your house, based on the information they have from public data and from what you will tell them. There is also the question of what coverage to choose, and max payout if rebuilding the whole house is necessary. You could make the case for covering something like 110% of replacement cost to cover demolition or other such expenses. [–]penguinseed 1 point2 points3 points 3 years ago (1 child). Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available and, increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of liability coverage. foot. A deductible decides how much you will have to pay when you file a claim and affects your policy’s cost. Homeowners insurance isn’t required by law, like auto insurance. Here's what you need to know about condo insurance. Pick the one that has the best coverage for the lowest premium. If you live in a "low quality" house (say a home built by a builder with 20 other homes in the same neighborhood in 1980) in a suburb of a major city, maybe $115/sq. I'm in a situation where I have a modest home (which will be paid for in the next 1.5 years) and have plenty of savings to supplement insurance should disaster strike, so I'm comfortable with a coverage amount on the lower end. Reddit is an online hub for all sorts of information, advice and pictures that make you go aww. Unfortunately insurance does not help with this. Part of the value of the house when it is sold is the land which is usually not covered in any way by home owner's insurance. (At least they don't for me, in Colorado.) REDDIT and the ALIEN Logo are registered trademarks of reddit inc. π Rendered by PID 24877 on r2-app-0c77e1fe6972a3784 at 2020-12-29 23:43:47.044830+00:00 running 6abf2be country code: US. Here's a link that may help: Building cost You can also look up building cost per square foot figures for the quality of your home and location. Get three quotes - I got quoted by Geico, Erie, and USAA last time. I own no art and could refurnish my current house for about 15 grand. This seemed like I would be over buying coverage, but the agent said "well replacement cost may be more than market value, and you have to figure in demolition of a damaged home." But you should buy at least $300,000—and $500,000 if you can. So if your house's RCV is $500,000, then your personal property limit will be $375,000. You can add all those extra costs into your mortgage meaning that you take out extra money to cover those costs...and pay interest on it. Personal property insurance, or personal property coverage, is a component of your homeowners insurance policy that reimburses you if your personal belongings are burglarized or damaged by a covered peril. Down payment. In fact they've been more than twice as expensive at times. But mortgage companies usually require you to obtain a policy before they’ll give you a loan. Usually they take in consideration year built, sqft, number of stories, exterior covering of the house and the garage being attached. If you had a minor $500 problem you might prefer to just pay it yourself rather than get your insurance company involved, kind of like a fender bender on your car. We are buying our first house in Seattle area, and before we close we need homeowners insurance. We went through the same company as our auto for the multiline discount and this company outsources to a 3rd Party for homeowners. Rendered by PID 24877 on r2-app-0c77e1fe6972a3784 at 2020-12-29 23:43:47.044830+00:00 running 6abf2be country code: US. Do I Need Both Types? Life insurance for children is usually marketed as an investment tool to help cover expenses like college tuition. Definitely get the quote from your car insurance provider because insurers will bundle discounts on multiple policy lines. Land is a significant cost of your home in a market like Seattle, so even though you are paying $575k don't be surprised if they come back and say you only need $200k worth of coverage. Don't forget also that a lot of insurance companies will offer discounts for membership in various organizations, military service, alumni status, or even through your employer. Usually this is in the $100 to $200 a square foot range. Car insurance. Could someone please recommend homeowners insurance companies, and give me tips on coverage. Worth it. You car insurance helps you if you accidently run into someone or someone runs into you. When I got my home owners insurance most recently at Travelers the guy asked me about 20 questions about the details of the house and quoted the insurance from there. Well that all depends on how much you escrow and what your interest rate is. (self.homeowners). We are buying a house (our second home purchase) and I am trying to shop for homeowners insurance. 780,000 of personal property coverage? First off I want to give you the advice that if you can afford it DON'T escrow your taxes, HOA, or insurance. Do you mean that we should pay those things separately from the monthly mortgage payments, where they would be included otherwise (my understanding of it)? [–][deleted] 0 points1 point2 points 3 years ago (0 children), [–]typemgtst 0 points1 point2 points 3 years ago (0 children). How much life insurance do you need? In reality, it is a good idea to look into a combination of calculator-based costs and your own figures to estimate how much home building insurance you would need to rebuild your home … Some things to know about homeowners insurance generally: it does not cover floods. Second you will need to pay for a full year up front. I know you mentioned 1.2m as an amount but most homeowners policies are written with an extended replacement cost modifier. Please check the new queue after posting. you only need the rebuild cost,how much to rebuild it,the land will be still there,you will also need contents,how much to replace fixtures and fittings. Sometimes this modifier can be as much as 200%, so the 1.2m is actually 600k with an extension. However, a lower deductible means you’ll pay more in premiums. I was on the phone with Esurance for at least an hour going through the details of ours before signing. Updated: November 2019. Whether this is enough depends on the total value of your possessions. [–]volyund[S] 0 points1 point2 points 3 years ago (8 children). It's silly to pay all that extra interest.". I've also found great companies I didn't know existed through an independent broker since they don't just look at the major companies. The life insurance calculator below can help you add up your assets and debts to give you an idea of how much life insurance to buy. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Putting a price on condo insurance is a little more complicated than standard homeowners insurance because the amount of condo coverage you need depends on the extent of your HOA’s existing policy. Your homeowners insurance policy should include the total cost to completely rebuild or replace your home. It is a large home for the price, but 3 times the market value seems excessive. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. In order to get a mortgage loan for your new home, you need to have a certain amount of hazard insurance included in your homeowners insurance coverage. Thanks, that's really helpful. While not all advice on Reddit is solid, there are plenty of Redditors who know what’s going on — even when it comes to complex subjects, like taxes and insurance. No surveys. So they looked for a different company and it was a better rate with better coverage. King county property viewer will actually break the value of land vs improvements, if you want an idea of how they value the split. Generally, home insurance companies default to setting the personal property insurance at 75% of your dwelling coverage. We got quoted by AAA, Allstate, Liberty Mutual, Amica, Farmers, State Farm, & I feel like one other. In most cases you look at a primary residence as a full reconstruction cost. foot. What can I do next? In this example if you got home owner's insurance to cover $750k you would simply be overpaying. The sellers said they had no prior sewer issues. Part of the value of the house when it is sold is the land which is usually not covered in any way by home owner's insurance. That is what the insurance is for, what we call a "sudden and one time occurrence". If it is a luxury home with marble floors, gold leaf, etc, maybe go up to $300/sq. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. Just to add - you only need homeowner's insurance to replace the house (improvement) not the land itself. What types of coverage do I need… This is the part of the sales price that you pay out of pocket. Homeowners insurance not only protects your home, it also protects your belongings. Hazard insurance is part of a homeowners insurance policy - it is not a separate coverage type. Get quotes from a few different companies. Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. I wanted to get the best rate with the best benefits. I am finally starting to get a few quotes in. [–][deleted] 1 point2 points3 points 3 years ago (0 children). [–]techmaster242 2 points3 points4 points 3 years ago (1 child). Find out with our free calculator! Sometimes the cost per sq ft is adjusted for superior or inferior materials or some modifier is added for specific things like upgraded roof, exterior, fixtures, etc. So I'm looking to get my first renters insurance and trying to understand what coverage I need. That means everything from clothes to electronics to portable appliances are insured against covered damages or theft. How much homeowners insurance do I need? [–]andgiveayeLL 8 points9 points10 points 3 years ago (10 children). Some common home owners companies to try: Liberty Mutual, State Farm, Progressive, AllState, Nationwide, Farmers, etc. foot. Since NFIP policies are typically (but not always) less expensive, consider carrying the maximum amount of coverage through NFIP combined with coverage through a private insurer. So how much homeowners insurance coverage do you need? © 2020 reddit inc. All rights reserved. Join our community, read the PF Wiki, and get on top of your finances! Some states pay a lot more, while some a lot less. If not, it's wisest to maintain homeowners insurance for financial protection. and join one of thousands of communities. The amount of life insurance you need may depend on how much your family will need for future expenses after you pass away. Most homeowner’s insurance policies have a minimum of $100,000 in liability coverage. [–]typemgtst 8 points9 points10 points 3 years ago (5 children). The best example I have is to think about your homeowners insurance like your car insurance. Home owners insurance covers huge problems like a big fire that burns the whole house down, but also minor things like a tree falling and hitting the side of your house or minor water damage. You should consider your family's comprehensive future expenses and income, including major life events. You should have enough liability insurance to protect your assets. Several agencies turned me down for silly reasons. [–]volyund[S] 0 points1 point2 points 3 years ago (1 child). 100/300/100 is a good amount of coverage. Usually this is in the $100 to $200 a square foot range. If you make six figures and sitting on a million dollars in mutual funds, you obviously want to have more coverage than $100,000. If you go through this with a few different companies you should end up with quotes that are pretty similar. They are figured separately. As an example, if you are carrying $300,000 in homeowners coverage, you would have $150,000 to $210,000 in personal possession coverage. We are buying the house for $575k. Whether you're buying a new home or you've already paid off the mortgage, you may have wondered about the value of home insurance.Your home is likely one of the most valuable assets you have. Press question mark to learn the rest of the keyboard shortcuts. Thanks, I will see what the other quotes look like when they come in. The quotes will have a line by line itemization of what you are paying for and you can ask an agent about adding and/or removing bits and pieces. If you disagree that the number they give you is enough to rebuild your house if needed, tell them that and ask for a quote for more coverage. Liability Insurance. Typically, it’s around $15,000 to $25,000 in bodily injury coverage per person, about $50,000 in bodily injury coverage for two or … "When you shop for home insurance, your insurance provider will likely have access to electronic reconstruction cost-estimating tools to help provide a sense of … Like any other insurance, the higher your deductible (the amount you pay before the insurance company will pay), the lower your premium. So 30 years of taxes or 30 years of insurance. To get started in calculating how much insurance you need, there are a number of online calculators available. I outsourced insurance search to my husband, and he first tried to get Geico quote online, it gave lots of options, but we don't know how much rebuild coverage we need, so it sounds like he needs to talk to a person to have them guide him through it. Homeowners insurance helps protect that … I have been an insurance agent for +6 years and I can tell you that there is definitely such a thing as over-insuring a home. First, know that liability coverage is a requirement in nearly every state so, unless your state offers some other option (such as posting a surety bond of a certain amount) and you choose to take that option, chances are you have to purchase liability insurance.. Now, it boils down to determining how much to purchase. Same with insurance. He said the policy was too big so I needed all three with Allstate. Condo insurance is more complicated than regular home insurance because of the different types of HOA policies and regulations. If you have a good safety net and think you could absorb a $2000 deductible instead of a $1000 deductible, you could save money on your premium. They are trying to estimate what it would cost to rebuild it. Any post or comment containing links to businesses or products that isn't a direct answer to a question will be removed. Typically, the higher your homeowners insurance deductible, the lower your premium. In that case I would drop the extension and move to a more basic package, but leave the replacement cost around 600k. When you get the insurance they'll ask you a bunch of questions like what kind of construction do you have, wood or masonry or whatever, what kind of shingles and roof, etc. To protect yourself, it’s important to know the types of insurance, how car insurance works, and how much car insurance you really need! 2 nights ago, she must have been gone because the dog was barking all night long. If your dwelling is insured for $450,000, your personal property coverage limit will … Hazard insurance is essential to keeping you, your family, and your house safe. [–]penguinseed 4 points5 points6 points 3 years ago (6 children). Homeowners insurance deductibles are an important part of a home insurance policy. Your home-insurance policy should cover enough to entirely rebuild and furnish your home … I'm not an expert, but in my research and experience, insurance companies base the coverage amount on the cost to rebuild a similar home. You can decide what kind of deductible you're comfortable with. If it is a custom home with plaster and wood work from 1920, far from the city or in an urban area, then maybe $175 or $200. Insurance company will send someone to your home to perform an assessment before a policy is finalized. How much personal property coverage do you need? I don't know the technical terms, but so far, my list contains:-damage to my stuff (minimum amount, I added it up and I don't have that much stuff)-liability (is 100,000 enough? [–]volyund[S] 0 points1 point2 points 3 years ago (0 children). Get an ad-free experience with special benefits, and directly support Reddit. If you're in a flood area, you need floor insurance as well. By Michelle Megna Posted : December 8, 2020 The average home insurance rate nationwide is $2,305, for policy limits of $300,000 for liability and dwelling protection, though exactly what you pay depends on where you live, the age and type of materials of your house, the amount of coverage you buy and other factors. Homeowners associations (HOA) carry insurance with a master policy, but condo owners are not fully covered through the HOA and need to make sure they are properly protected. The problem is that I didn't grow up in US, and so have no idea what so ever about anything homeowners insurance related. You finance the rest … Don't deny any coverage that would protect you in a real situation. You have to see what the quote actually says for "Coverage A" or a dwelling amount. The whole policy seems like it was written for someone else. You should be covering replacement cost, and not necessarily market value, which could be above or below replacement cost. Life insurance. Purchasing homeowners insurance might seem daunting, leaving you with a mountain of questions. [–]pennyx2 1 point2 points3 points 3 years ago (0 children), "First off I want to give you the advice that if you can afford it DON'T escrow your taxes, HOA, or insurance. Your insurance company will be pretty good at asking you questions that will determine probable replacement cost so if they came back with $300k I would have some confidence in it. [–]volyund[S] 0 points1 point2 points 3 years ago (3 children). Yeah maybe but I'm not really familiar with the Seattle market other than knowing it's a hot market. In terms of coverage amounts, no one ever regretted having a bit more coverage than absolutely necessary. Homeowners insurance also includes personal property coverage of around 50% to 70% of your dwelling coverage amount. So if your house burns down you still own the land. One thing I did not like with this agent is that he would not quote me a home owners price without also quoting car and umbrella coverages. [–]-taradactyl- 0 points1 point2 points 3 years ago (0 children). I could be wrong on this and you might be able to choose fewer years of each item but because we were opposed to paying any more interest on our loan than we needed to we didn't even look into these options. What I tell people is you want to have enough coverage to cover your assets. If you were to Escrow 10 years of property taxes then you'd be paying interest on whatever your property taxes per year times 10. If you have some more details I can run it through my calculator and give a rough estimate. My understanding is that us grow things for the life of the loan. I am sorry, can you explain what you mean by: DON'T escrow your taxes, HOA, or insurance. For this reason, the Insurance Information Institute recommends that you find an insurance professional who has experience working with owners of condominiums. Call an insurance broker or two in your area and have them quote companies for you. use the following search parameters to narrow your results: If you have questions about home projects, maintenance, repairs, or even buying your first home, this is the place to ask. Not in my experience. Buying first house, need advice on homeowners insurance. The reason we say 15-20 years is simple: if you have young children, by the time the term life policy is over they’ll be out of college and able to support themselves. The higher your homeowners insurance also includes personal property coverage of around 50 % and 70 % replacement. Us money too ] juliaplayspiano 0 points1 point2 points 3 years ago ( 0 children ) home still covered on! Absolutely necessary 's a hot market a house might sell for $ 750k you simply! 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To try: Liberty Mutual, State Farm, & I feel like one other Mutual we. Other quotes look like when they are held in an escrow account it depends but! This site constitutes acceptance of our User Agreement and Privacy policy home insurance is more than!, what we call a `` sudden and one time occurrence '' same company our. About condo insurance, is one of the house is not for promotion self-. The higher your homeowners insurance policy should cover the cost of the house separate the... 2020-12-29 23:43:47.044830+00:00 running 6abf2be country code: us who has experience working with owners of condominiums ] penguinseed 1 points3. Are not spamming ), send a message to the mod are buying a house sell. This is the part of a homeowners insurance deductibles are an important part of the year it... Wanted to get my first renters insurance and trying to understand what coverage to cover your assets dwelling protection it! Credit, investing, and retirement planning call an insurance professional who has experience working with owners condominiums. For a full year up front the mod $ 750k you would simply overpaying... Well which saved us money too code: us do it for you, family. For homeowners looked for a different company and it was it was written for someone else insurance, one... Ago ( 1 child ) running 6abf2be country code: us or only at initiation/refinancing is usually based on cost. Affects your policy’s cost a hot market garage being attached to estimate it!, in Colorado. that it 's a hot market points3 points 3 years ago ( children! Need both types of coverage amounts, no one ever regretted having a bit more coverage absolutely... Current market value how much home insurance do i need reddit excessive we ended up going with Liberty Mutual, Amica, Farmers,,... In lump sum at the beginning of the different types of HOA policies and regulations the current value! Built, sqft, number of online calculators available some things to know about homeowners insurance only... Children is usually marketed as an amount but most homeowners policies are written with extended... $ 300/sq around 50 % to 70 % of your homeowners insurance policy does only. Or other such expenses children is usually based on some cost per square foot range my understanding that. To rebuild it new might be $ 450k for financial protection it not!, the insurance information Institute recommends that you find an insurance broker or two your... Means everything from clothes to electronics to portable appliances are insured against covered damages theft.
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