Insure for Replacement Cost?

[an]

[quote=Raybyrnes]
What you may also want to check on your policy is that it has a cost of inflation rider. This prevents you from going 10 years without adjusting for costs. This is what caused many people to be underinsured.[/quote]
Yep, my policy have that. It might be standard practice for AAA, I’m not sure.

[joec]

Bump and wanted to see what people are now paying for home coverage…

From looking at my policy, the coverage is a lot more expensive than back in 2009. That’s probably to be expected, but does it really cost over $200/sqft now to rebuild a house in San Diego?

From looking at new and old $/sqft search, it seems like this seems to be the correct price while it was about $130 back in 2010 or so (some graphs seem to end there for some reason).

What are people seeing in insurance premiums now? We are near $2k/year for guaranteed replacement cost…over 3k+ sqft track home in 4S.

[ltsddd]

[quote=joec]

What are people seeing in insurance premiums now? We are near $2k/year for guaranteed replacement cost…over 3k+ sqft track home in 4S.[/quote]

Yup, I am seeing the same thing. It’s about 2% of the value of the house. Interestingly, the insurance for my rentals are still hovering around the “traditional” 1% of the property value.

[all]

[quote=joec]Bump and wanted to see what people are now paying for home coverage…

From looking at my policy, the coverage is a lot more expensive than back in 2009. That’s probably to be expected, but does it really cost over $200/sqft now to rebuild a house in San Diego?

From looking at new and old $/sqft search, it seems like this seems to be the correct price while it was about $130 back in 2010 or so (some graphs seem to end there for some reason).

What are people seeing in insurance premiums now? We are near $2k/year for guaranteed replacement cost…over 3k+ sqft track home in 4S.[/quote]

50% increase over 2010 sound plausible. The cost of skilled labor is up by that much and materials went up more than 50% – lumber is double what it was in 2008-2009.

Just look around you – in 2009 you had several units in development within 5 miles of 4S. Must be more than 200 today.

[Balboa_Again]

For our recent quote (Farmers) the replacement value per sqft was about $178 including debris removal, and they allow up to 129%, so $230/sqft.

This is for ~1400 sqft in Midcity, not on a canyon, but with a pool and fireplace. With the other coverage — contents, loss of use, etc., the policy is about 800 a year.

My parents live in the Midwest and have had full replacement with USAA for decades. They have gotten their money’s worth thanks to the weather around there (plus normal house stuff like an overflowing washing machine). Lose a couple of shingles? New roof! They recently had their siding redone because a branch tore through a bit on a part that doesn’t face the street. Because the original color and texture is no longer available, USAA did the entire house in the new stuff. The adjuster pointed out a dent on the garage door at the time and kind of tried to bully my parents into replacing it. They declined.

[joec]

Thanks for sharing…I kept my full replacement cost policy since I suppose, prices have doubled since…

[earlyretirement]

Definitely it makes sense to go for replacement cost vs. actual cost. You don’t want to be underinsured.

Also, make sure you shop around. When buying my home in Santaluz I found there was a HUGE spread between various companies. Even different offices within the same company in different neighborhoods would have shockingly different values.

I found a GREAT insurance company that was much lower than all the other companies that I got quotes from.

[ltsddd]

I recently took a closer look at my home insurance since I noticed the cost to insure my primary has gone up a lot more than the rentals in recent years.

I found out the dwelling coverage for the rentals is not a “guaranteed replacement cost coverage” as expected but an “extended replacement cost coverage”. WTF? THe pigglords on this board, would you care to share what’s your coverage is like for your rentals?

[Author]

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