1 reply to this topic

[Agent_007]

I continue to receive emails from MF netizens regarding home coverage costs to rebuild their homes ensuring their insurance policies have enough coverage.

I stumbled upon the below info so I thought I would share it with you so you can educate yourselves if your home is covered for catastrophic loss.

In no way is this an endorsement of the below site. I personally have not used it.

Kiplinger’s Personal Finance. 2008/06/00. Page 83. This Ask Kim column responds to a reader’s question as to why her homeowners insurer says her house, which is worth about $550,000, only needs $454,000 in replacement coverage. The columnist explains that the difference is because the insurance value of the home does not take into account the value of the land on which it is built. However, to make sure there will be enough money to rebuild, for example, if rebuilding costs go up unexpectedly, a homeowner can buy an endorsement that adds up to 25 percent to the insured amount. The columnist also notes that for a fee of $7.95 homeowners can get an estimate of their eventual building costs from www.accucoverage.com.

As always, each home is unique and is built with different materials, along with varying degrees of skilled labor requirements. These features/costs do affect how much coverage you should have per square foot in your home.

[Warren G]

Spend $3k to $7k on fire sprinklers and you won't have to worry about rebuilding your home after a fire because in 99% of cases it won't burn down. And no one ever dies in a house protected by fire sprinklers. "You can look it up."