Home Buying in 33024>Question Details

purplefan, Home Buyer in Pompano Beach, FL

For insurance how do you figure out the replacement value?

Asked by purplefan, Pompano Beach, FL Wed Oct 16, 2013

I have gotten several insurance quotes and the coverage amounts they recommend for replacement of dwelling go anywhere from 30% below the purchase price to 20% above. We are getting a short sale in Rock Creek so the purchase price may be a slight discount although I really don't know how much. Also, I do believe the land should be worth something as it is in a nice neighborhood with good schools. None of the quotes really came in in the middle either they were all significantly above purchase price or significantly below? Any thoughts?

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On your appraisal will be cost to replace new. This is what they insurance agency can go by. Now with that said, there are some insurance policies that can even cost less with more coverage. Find an insurance agent you trust and know will do the right thing and not add on coverages not needed just to bump up premiums. If you need some insurance company contacts, feel free to contact me.
0 votes Thank Flag Link Thu Oct 17, 2013
In the worse case scenario:IF the house burn down to the ground, the LAND is not affected; that's why the replacement cost part of insurance is for structure and your belongings (appliances,
cabinets, etc.) only...

You can consult with a builder for THE COST TO rebuilt, nowadays, the subject property...

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0 votes Thank Flag Link Wed Oct 16, 2013
Your appraisal should help the insurance agents and BCPA has a breakdown between the dwelling and the land.
0 votes Thank Flag Link Wed Oct 16, 2013
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