How much home insurance do we need?
July 28, 2014 10:38 AM Subscribe
We're looking to switch providers, and the quotes are based on very different replacement-value amounts. What do we actually need?
posted by Dashy to Home & Garden (6 answers total) 2 users marked this as a favorite
We bought a house last year for $PP (purchase price). At that time I went with the employer-discount-associated Company 1 for home insurance, who insured it for $PP of replacement value. For Reasons, I'm looking to leave Company 1.
Company 2 is quoting our replacement cost as 150% of $PP, and the quote comes out to $850/yr, while Company 1 was insuring us for $PP at $430/yr.
I know that replacement cost is "the cost it would take to rebuild your home". I'm not a contractor, but I also understand that whatever the cost would be, it's highly variable. I do think Company 2's 150% value is too much, as bigger newly built homes close by are selling for much less. The quote for Company 2 came from their generator, which took square footage, 'builder grade' bathrooms, attached garage, etc. into account and spat out the 150% of $PP number, saying we should be insured for that much.
So, are we currently underinsured? How would I know, short of finding, and wasting the time of, 3 contractors?