homeowner’s insurance advice?

[cantab]

My Allstate agent recommends increased coverage. Currently I am at $150 per square foot. The policy provides 10% extra for code upgrades and 50% extra for cost of rebuilding. The agent says the effective maximum coverage is therefore $225 per square foot.

The house is from the 1970s, west of the 5 freeway, with some upgrades: new kitchen, windows, etc. Nothing unusual.

What is reasonable coverage? I am risk-neutral. Worst case, I could find an extra $100K or $200K if needed to rebuild, but I’d prefer not to.

Are any companies clearly better than Allstate, either on price or on willingness to pay claims?

[Anonymous]

If your agent is recommending you to increase your coverage after you have done some remodeling, then he or she is doing her job. According to a survey by Marshall & Swift / Boeckh, 2 out of 3 homes are underinsured by 27%. Hence, if you fall into that category and if your home costs $1,000,000 to rebuild, but your dwelling is insured at $730,000, you’re looking at coming up with another $270,000. And I believe that survey, for in the 2007 Witch Creek wild fires, many homes were underinsured.
As per my experience, I have seen that most homes are in fact under insured. And, I believe that there are several reasons as to why this is the case. First, most of the time, unfortunately, insurance is sold on price rather than need. If you see the commercials on TV all but two companies advertising try to convince you that if you switch to their company that will save you a bunch of money. Your home may need another $270,000 to rebuild, but in order to insure the house up to value it will also cost you more.
Which takes us to the second point, many homeowners are looking to save money on their insurance, and don’t want to pay more for their insurance. For example, if my agency presents a quote that insures your home to value at $1,000,000 and the cost to insure, hypothetically speaking comes out to $1,000, and another agency indicates $730,000 with a lower price of $700, odds are my agency will not insure the home.
Yet, in some cases, the homeowner will insure up to value, if he or she is educated on the subject. Too often this will not happen unless you have a good and knowledgeable agent or broker. A good agent should notice that your home was built in 1970 and yet you have only 10% Building Code coverage.
Hence, there are other good insurance companies out there, and good agents to protect your dreams. If you need a second opinion on your insurance http://www.fast2insure.com

[Anonymous]

If your agent is recommending you to increase your coverage after you have done some remodeling, then he or she is doing her job. According to a survey by Marshall & Swift / Boeckh, 2 out of 3 homes are underinsured by 27%. Hence, if you fall into that category and if your home costs $1,000,000 to rebuild, but your dwelling is insured at $730,000, you’re looking at coming up with another $270,000. And I believe that survey, for in the 2007 Witch Creek wild fires, many homes were underinsured.
As per my experience, I have seen that most homes are in fact under insured. And, I believe that there are several reasons as to why this is the case. First, most of the time, unfortunately, insurance is sold on price rather than need. If you see the commercials on TV all but two companies advertising try to convince you that if you switch to their company that will save you a bunch of money. Your home may need another $270,000 to rebuild, but in order to insure the house up to value it will also cost you more.
Which takes us to the second point, many homeowners are looking to save money on their insurance, and don’t want to pay more for their insurance. For example, if my agency presents a quote that insures your home to value at $1,000,000 and the cost to insure, hypothetically speaking comes out to $1,000, and another agency indicates $730,000 with a lower price of $700, odds are my agency will not insure the home.
Yet, in some cases, the homeowner will insure up to value, if he or she is educated on the subject. Too often this will not happen unless you have a good and knowledgeable agent or broker. A good agent should notice that your home was built in 1970 and yet you have only 10% Building Code coverage.
Hence, there are other good insurance companies out there, and good agents to protect your dreams. If you need a second opinion on your insurance http://www.fast2insure.com

[Anonymous]

If your agent is recommending you to increase your coverage after you have done some remodeling, then he or she is doing her job. According to a survey by Marshall & Swift / Boeckh, 2 out of 3 homes are underinsured by 27%. Hence, if you fall into that category and if your home costs $1,000,000 to rebuild, but your dwelling is insured at $730,000, you’re looking at coming up with another $270,000. And I believe that survey, for in the 2007 Witch Creek wild fires, many homes were underinsured.
As per my experience, I have seen that most homes are in fact under insured. And, I believe that there are several reasons as to why this is the case. First, most of the time, unfortunately, insurance is sold on price rather than need. If you see the commercials on TV all but two companies advertising try to convince you that if you switch to their company that will save you a bunch of money. Your home may need another $270,000 to rebuild, but in order to insure the house up to value it will also cost you more.
Which takes us to the second point, many homeowners are looking to save money on their insurance, and don’t want to pay more for their insurance. For example, if my agency presents a quote that insures your home to value at $1,000,000 and the cost to insure, hypothetically speaking comes out to $1,000, and another agency indicates $730,000 with a lower price of $700, odds are my agency will not insure the home.
Yet, in some cases, the homeowner will insure up to value, if he or she is educated on the subject. Too often this will not happen unless you have a good and knowledgeable agent or broker. A good agent should notice that your home was built in 1970 and yet you have only 10% Building Code coverage.
Hence, there are other good insurance companies out there, and good agents to protect your dreams. If you need a second opinion on your insurance http://www.fast2insure.com

[Anonymous]

If your agent is recommending you to increase your coverage after you have done some remodeling, then he or she is doing her job. According to a survey by Marshall & Swift / Boeckh, 2 out of 3 homes are underinsured by 27%. Hence, if you fall into that category and if your home costs $1,000,000 to rebuild, but your dwelling is insured at $730,000, you’re looking at coming up with another $270,000. And I believe that survey, for in the 2007 Witch Creek wild fires, many homes were underinsured.
As per my experience, I have seen that most homes are in fact under insured. And, I believe that there are several reasons as to why this is the case. First, most of the time, unfortunately, insurance is sold on price rather than need. If you see the commercials on TV all but two companies advertising try to convince you that if you switch to their company that will save you a bunch of money. Your home may need another $270,000 to rebuild, but in order to insure the house up to value it will also cost you more.
Which takes us to the second point, many homeowners are looking to save money on their insurance, and don’t want to pay more for their insurance. For example, if my agency presents a quote that insures your home to value at $1,000,000 and the cost to insure, hypothetically speaking comes out to $1,000, and another agency indicates $730,000 with a lower price of $700, odds are my agency will not insure the home.
Yet, in some cases, the homeowner will insure up to value, if he or she is educated on the subject. Too often this will not happen unless you have a good and knowledgeable agent or broker. A good agent should notice that your home was built in 1970 and yet you have only 10% Building Code coverage.
Hence, there are other good insurance companies out there, and good agents to protect your dreams. If you need a second opinion on your insurance http://www.fast2insure.com

[Anonymous]

If your agent is recommending you to increase your coverage after you have done some remodeling, then he or she is doing her job. According to a survey by Marshall & Swift / Boeckh, 2 out of 3 homes are underinsured by 27%. Hence, if you fall into that category and if your home costs $1,000,000 to rebuild, but your dwelling is insured at $730,000, you’re looking at coming up with another $270,000. And I believe that survey, for in the 2007 Witch Creek wild fires, many homes were underinsured.
As per my experience, I have seen that most homes are in fact under insured. And, I believe that there are several reasons as to why this is the case. First, most of the time, unfortunately, insurance is sold on price rather than need. If you see the commercials on TV all but two companies advertising try to convince you that if you switch to their company that will save you a bunch of money. Your home may need another $270,000 to rebuild, but in order to insure the house up to value it will also cost you more.
Which takes us to the second point, many homeowners are looking to save money on their insurance, and don’t want to pay more for their insurance. For example, if my agency presents a quote that insures your home to value at $1,000,000 and the cost to insure, hypothetically speaking comes out to $1,000, and another agency indicates $730,000 with a lower price of $700, odds are my agency will not insure the home.
Yet, in some cases, the homeowner will insure up to value, if he or she is educated on the subject. Too often this will not happen unless you have a good and knowledgeable agent or broker. A good agent should notice that your home was built in 1970 and yet you have only 10% Building Code coverage.
Hence, there are other good insurance companies out there, and good agents to protect your dreams. If you need a second opinion on your insurance http://www.fast2insure.com

[NotCranky]

Cantab,

I think your agent is making a good suggestion.You can go to about $200 per square foot. That will up the potential of the 50% rider also, putting you around $300 per sqft.I believe you also have coverage for demolition and clean-up before rebuilding. That should do very well for now,including handling any code upgrades, not forgetting that 10%.There is plenty of coverage to allocate toward code upgrades even if 10% wouldn’t cover it otherwise.

If you go this route, verify that the rider stays intact. I recently did the same thing with Allstate and still have all the coverages mentioned here, including the rider at 50%.

[NotCranky]

Cantab,

I think your agent is making a good suggestion.You can go to about $200 per square foot. That will up the potential of the 50% rider also, putting you around $300 per sqft.I believe you also have coverage for demolition and clean-up before rebuilding. That should do very well for now,including handling any code upgrades, not forgetting that 10%.There is plenty of coverage to allocate toward code upgrades even if 10% wouldn’t cover it otherwise.

If you go this route, verify that the rider stays intact. I recently did the same thing with Allstate and still have all the coverages mentioned here, including the rider at 50%.

[NotCranky]

Cantab,

I think your agent is making a good suggestion.You can go to about $200 per square foot. That will up the potential of the 50% rider also, putting you around $300 per sqft.I believe you also have coverage for demolition and clean-up before rebuilding. That should do very well for now,including handling any code upgrades, not forgetting that 10%.There is plenty of coverage to allocate toward code upgrades even if 10% wouldn’t cover it otherwise.

If you go this route, verify that the rider stays intact. I recently did the same thing with Allstate and still have all the coverages mentioned here, including the rider at 50%.

[NotCranky]

Cantab,

I think your agent is making a good suggestion.You can go to about $200 per square foot. That will up the potential of the 50% rider also, putting you around $300 per sqft.I believe you also have coverage for demolition and clean-up before rebuilding. That should do very well for now,including handling any code upgrades, not forgetting that 10%.There is plenty of coverage to allocate toward code upgrades even if 10% wouldn’t cover it otherwise.

If you go this route, verify that the rider stays intact. I recently did the same thing with Allstate and still have all the coverages mentioned here, including the rider at 50%.

[NotCranky]

Cantab,

I think your agent is making a good suggestion.You can go to about $200 per square foot. That will up the potential of the 50% rider also, putting you around $300 per sqft.I believe you also have coverage for demolition and clean-up before rebuilding. That should do very well for now,including handling any code upgrades, not forgetting that 10%.There is plenty of coverage to allocate toward code upgrades even if 10% wouldn’t cover it otherwise.

If you go this route, verify that the rider stays intact. I recently did the same thing with Allstate and still have all the coverages mentioned here, including the rider at 50%.

[Anonymous]

Unfortunately 10% building ordinance may not be enough especially for a building that is built in 1970. The word is that California wants to require insulation be added into the walls. If this comes to pass, then even 25% building ordinance coverage may not be enough.
http://www.fast2insure.com

[Anonymous]

Unfortunately 10% building ordinance may not be enough especially for a building that is built in 1970. The word is that California wants to require insulation be added into the walls. If this comes to pass, then even 25% building ordinance coverage may not be enough.
http://www.fast2insure.com

[Anonymous]

Unfortunately 10% building ordinance may not be enough especially for a building that is built in 1970. The word is that California wants to require insulation be added into the walls. If this comes to pass, then even 25% building ordinance coverage may not be enough.
http://www.fast2insure.com

[Anonymous]

Unfortunately 10% building ordinance may not be enough especially for a building that is built in 1970. The word is that California wants to require insulation be added into the walls. If this comes to pass, then even 25% building ordinance coverage may not be enough.
http://www.fast2insure.com

[Author]

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