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how much home insurance do i need reddit

I outsourced insurance search to my husband, and he first tried to get Geico quote online, it gave lots of options, but we don't know how much rebuild coverage we need, so it sounds like he needs to talk to a person to have them guide him through it. Any post or comment containing links to businesses or products that isn't a direct answer to a question will be removed. Sure the earthquake deductible is 20% of the cost of the house but that's less than 100% and a fairly small annual premium. We ended up going with Liberty Mutual, we transferred our car insurance to LM as well which saved us money too. They are figured separately. Most homeowner’s insurance policies have a minimum of $100,000 in liability coverage. If your home is worth more than $250,000 and you’re in a high-risk area, you may actually need both types of coverage. 100/300/100 is a good amount of coverage. Your homeowners insurance policy should include the total cost to completely rebuild or replace your home. Join our community, read the PF Wiki, and get on top of your finances! Press question mark to learn the rest of the keyboard shortcuts. Call an insurance broker or two in your area and have them quote companies for you. Buying first house, need advice on homeowners insurance. Home owner's insurance should cover the cost to rebuild the house back to how it is now. The best example I have is to think about your homeowners insurance like your car insurance. What types of coverage do I need… By Michelle Megna Posted : December 8, 2020 The average home insurance rate nationwide is $2,305, for policy limits of $300,000 for liability and dwelling protection, though exactly what you pay depends on where you live, the age and type of materials of your house, the amount of coverage you buy and other factors. [–]bippitybippityboop 0 points1 point2 points 3 years ago (0 children). To protect yourself, it’s important to know the types of insurance, how car insurance works, and how much car insurance you really need! Ceiling fans sold at Home Depot recalled because blades may spin off, Renovations performed by seller done erroneously, causing damage to home. [–]volyund[S] 0 points1 point2 points 3 years ago (0 children). The house is not in a flood area, thankfully, so I think we just need the standard. When you get the insurance they'll ask you a bunch of questions like what kind of construction do you have, wood or masonry or whatever, what kind of shingles and roof, etc. Investment properties are usually a fair market value. However, the person who prepares your quote will give you a number of what they believe total loss coverage should look like for your house, based on the information they have from public data and from what you will tell them. Car accident damaged our iron fence. As an example, if you are carrying $300,000 in homeowners coverage, you would have $150,000 to $210,000 in personal possession coverage. Personal property insurance, or personal property coverage, is a component of your homeowners insurance policy that reimburses you if your personal belongings are burglarized or damaged by a covered peril. Coverage for displacement might be a thing to look at here too, since renting an apt while your house is being repaired isn't cheap. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. foot. Here's what you need to know about condo insurance. Do I Need Both Types? Some common home owners companies to try: Liberty Mutual, State Farm, Progressive, AllState, Nationwide, Farmers, etc. In that case I would drop the extension and move to a more basic package, but leave the replacement cost around 600k. Typically, the higher your homeowners insurance deductible, the lower your premium. For example in a hot market a house might sell for $750k but the cost to rebuild it new might be $450k. It's silly to pay all that extra interest.". So if your house burns down you still own the land. If your dwelling is insured for $450,000, your personal property coverage limit will … Remember Liability Coverage: Your homeowners insurance policy doesn't only provide protection for the structure and contents. But mortgage companies usually require you to obtain a policy before they’ll give you a loan. The quotes will have a line by line itemization of what you are paying for and you can ask an agent about adding and/or removing bits and pieces. The sellers said they had no prior sewer issues. If you live in a "low quality" house (say a home built by a builder with 20 other homes in the same neighborhood in 1980) in a suburb of a major city, maybe $115/sq. Thanks, that's really helpful. Typically, it’s around $15,000 to $25,000 in bodily injury coverage per person, about $50,000 in bodily injury coverage for two or … Car insurance. The mortgage company assumes people want to do this because it's more convenient. I have been an insurance agent for +6 years and I can tell you that there is definitely such a thing as over-insuring a home. We got quoted by AAA, Allstate, Liberty Mutual, Amica, Farmers, State Farm, & I feel like one other. I texted her yesterday morning letting her know the dog was barking and crying. I wanted to get the best rate with the best benefits. Your home-insurance policy should cover enough to entirely rebuild and furnish your home … I am sorry, can you explain what you mean by: DON'T escrow your taxes, HOA, or insurance. Do you mean that we should pay those things separately from the monthly mortgage payments, where they would be included otherwise (my understanding of it)? If you're in a flood area, you need floor insurance as well. [–]pennyx2 1 point2 points3 points 3 years ago (0 children), "First off I want to give you the advice that if you can afford it DON'T escrow your taxes, HOA, or insurance. Updated: May 2020. Whether this is enough depends on the total value of your possessions. I was on the phone with Esurance for at least an hour going through the details of ours before signing. [–]-taradactyl- 0 points1 point2 points 3 years ago (0 children). How much homeowners insurance do I need? I've received the same, if not better, coverage for a much lower rate going through a broker than calling Geico or another big company. They'll ask questions like whether you have upgraded appliances, whether your floors are wood or carpet, etc to help form that number. Hazard insurance is part of a homeowners insurance policy - it is not a separate coverage type. Purchasing homeowners insurance might seem daunting, leaving you with a mountain of questions. However, there are better options available. She never responded. You could make the case for covering something like 110% of replacement cost to cover demolition or other such expenses. So they looked for a different company and it was a better rate with better coverage. Not in my experience. Thanks, I will see what the other quotes look like when they come in. This subreddit gets a lot of spam and often good posts get caught in the filter. They did all the work and made it super easy for me. There is also the question of what coverage to choose, and max payout if rebuilding the whole house is necessary. One thing I did not like with this agent is that he would not quote me a home owners price without also quoting car and umbrella coverages. foot. Homeowners insurance also includes personal property coverage of around 50% to 70% of your dwelling coverage amount. How much personal property coverage do you need? You should be covering replacement cost, and not necessarily market value, which could be above or below replacement cost. Well that all depends on how much you escrow and what your interest rate is. For this reason, the Insurance Information Institute recommends that you find an insurance professional who has experience working with owners of condominiums. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. [–]saml01 0 points1 point2 points 3 years ago (0 children). [–]volyund[S] 1 point2 points3 points 3 years ago (4 children). REDDIT and the ALIEN Logo are registered trademarks of reddit inc. π Rendered by PID 24877 on r2-app-0c77e1fe6972a3784 at 2020-12-29 23:43:47.044830+00:00 running 6abf2be country code: US. Like any other insurance, the higher your deductible (the amount you pay before the insurance company will pay), the lower your premium. [–]andgiveayeLL 8 points9 points10 points 3 years ago (10 children). Condo insurance is more complicated than regular home insurance because of the different types of HOA policies and regulations. you only need the rebuild cost,how much to rebuild it,the land will be still there,you will also need contents,how much to replace fixtures and fittings. For example in a hot market a house might sell for $750k but the cost to rebuild it new might be $450k. If you go through this with a few different companies you should end up with quotes that are pretty similar. Replacement cost is usually based on some cost per square foot based on your area and the type of house it was. You need enough insurance to cover the cost of rebuilding your house at current construction rates (this includes your garage, shed, or similar structures). Updated: November 2019. Around $300k was the number we got yesterday. You should have enough liability insurance to protect your assets. How do I find out the cost of the house separate from the land? King county property viewer will actually break the value of land vs improvements, if you want an idea of how they value the split. Definitely get the quote from your car insurance provider because insurers will bundle discounts on multiple policy lines. In this example if you got home owner's insurance to cover $750k you would simply be overpaying. Most mortgage lenders don't even tell you that it's not mandatory to lump that into your mortgage. Liability Insurance. Life insurance for children is usually marketed as an investment tool to help cover expenses like college tuition. You finance the rest … Sometimes this modifier can be as much as 200%, so the 1.2m is actually 600k with an extension. Do you think $300k is a feasible cost to build a new 4bd 2ba house in Seattle? Part of the value of the house when it is sold is the land which is usually not covered in any way by home owner's insurance. (Boxers are a dangerous dog breed??) If the raw reconstruction amount comes to 1.2m then there is a chance that the agent is inflating it as an upsell or CYA on his part. They are trying to estimate what it would cost to rebuild it. When a home insurance company insured a wrong home address for you, is your correct home still covered? We have a similar amount in Seattle. However, the minimum coverage requirements can vary. Insurance company will send someone to your home to perform an assessment before a policy is finalized. Homeowners insurance deductibles are an important part of a home insurance policy. You should consider your family's comprehensive future expenses and income, including major life events. [–]volyund[S] 0 points1 point2 points 3 years ago (3 children). [–]techmaster242 2 points3 points4 points 3 years ago (1 child). foot. You can decide what kind of deductible you're comfortable with. Insurance paid out for a repair...but no company in the area does "repair" they only want to install new complete fences. How much do you save paying them in lump sum at the beginning of the year? Worth it. [–][deleted] 1 point2 points3 points 3 years ago (0 children). Basically you should carry enough coverage so that someone can come in and rebuild your house the way it is now in the event of some kind of catastrophe. A policy usually provides between 50% and 70% of your homeowners coverage for contents coverage. That is what the insurance is for, what we call a "sudden and one time occurrence". The life insurance calculator below can help you add up your assets and debts to give you an idea of how much life insurance to buy. If you do have this much money and are willing to take the risk of having to use it if your house is destroyed, then that's your choice. Life insurance. In most cases you look at a primary residence as a full reconstruction cost. Usually this is in the $100 to $200 a square foot range. If you have a good safety net and think you could absorb a $2000 deductible instead of a $1000 deductible, you could save money on your premium. Land is a significant cost of your home in a market like Seattle, so even though you are paying $575k don't be surprised if they come back and say you only need $200k worth of coverage. Also, if this is all too much for you to handle, you could hire a broker to do it for you. In order to get a mortgage loan for your new home, you need to have a certain amount of hazard insurance included in your homeowners insurance coverage. In reality, it is a good idea to look into a combination of calculator-based costs and your own figures to estimate how much home building insurance you would need to rebuild your home … Putting a price on condo insurance is a little more complicated than standard homeowners insurance because the amount of condo coverage you need depends on the extent of your HOA’s existing policy. Get quotes from a few different companies. In terms of coverage amounts, no one ever regretted having a bit more coverage than absolutely necessary. Usually this is in the $100 to $200 a square foot range. Most people are familiar with auto insurance, as you're required by law to have it in … Find out with our free calculator! Just to add - you only need homeowner's insurance to replace the house (improvement) not the land itself. My current insurance is for only slightly more than the market value of my home. A deductible decides how much you will have to pay when you file a claim and affects your policy’s cost. In fact they've been more than twice as expensive at times. What can I do next? Things like central air and a finished basement also effect the cost but you want to be careful of an agent selling you on an extended amount as opposed to an actual inflated amount. 780,000 of personal property coverage? First off I want to give you the advice that if you can afford it DON'T escrow your taxes, HOA, or insurance. Since NFIP policies are typically (but not always) less expensive, consider carrying the maximum amount of coverage through NFIP combined with coverage through a private insurer. Don't forget also that a lot of insurance companies will offer discounts for membership in various organizations, military service, alumni status, or even through your employer. Our broker told us to get quotes from our car insurance company, which is Geico. While not all advice on Reddit is solid, there are plenty of Redditors who know what’s going on — even when it comes to complex subjects, like taxes and insurance. Having $1.2 million of coverage for a house with market value of $400k doesn't make sense to me, I can't imagine a situation where replacement cost would be 3x market value, unless the house is full of art and collectibles or something. I don't know the technical terms, but so far, my list contains:-damage to my stuff (minimum amount, I added it up and I don't have that much stuff)-liability (is 100,000 enough? This is the part of the sales price that you pay out of pocket. So I'm looking to get my first renters insurance and trying to understand what coverage I need. Buying first house, need advice on homeowners insurance. Some states pay a lot more, while some a lot less. [–]UncleLongHair0 1 point2 points3 points 3 years ago (0 children). [–]penguinseed 1 point2 points3 points 3 years ago (1 child). (At least they don't for me, in Colorado.) (self.homeowners). Hazard insurance is essential to keeping you, your family, and your house safe. Your current assets are also important to consider, along with any potential for those assets to increase in value. Generally, home insurance companies default to setting the personal property insurance at 75% of your dwelling coverage. Homeowners associations (HOA) carry insurance with a master policy, but condo owners are not fully covered through the HOA and need to make sure they are properly protected. [–]penguinseed 4 points5 points6 points 3 years ago (6 children). Also can this arrangement be changed mid loan, or only at initiation/refinancing? If your post does not appear there (and you are not spamming), send a message to the mod. Homeowners insurance not only protects your home, it also protects your belongings. He said the policy was too big so I needed all three with Allstate. It seems like each company offers different services. [–]juliaplayspiano 0 points1 point2 points 3 years ago (0 children). How much condo insurance coverage do i need ? The problem is that I didn't grow up in US, and so have no idea what so ever about anything homeowners insurance related. Unfortunately insurance does not help with this. Same with insurance. Look into companies that have agents in your area, that way if you ever have an issue, you can just give them a call rather than having to go through an automated service. I know you mentioned 1.2m as an amount but most homeowners policies are written with an extended replacement cost modifier. I'm in a situation where I have a modest home (which will be paid for in the next 1.5 years) and have plenty of savings to supplement insurance should disaster strike, so I'm comfortable with a coverage amount on the lower end. How much life insurance do you need? Quote how much home insurance do i need reddit says for `` coverage a '' or a dwelling amount lowest..., Nationwide, Farmers, etc, maybe go up to $ 300/sq protection it! Insurance generally: it does not appear there ( and you are not spamming ), send a message the... People want to do this because it 's silly to pay when you file a claim and your... Back to how it is now $ 375,000 you should end up with that... Do it for you increase in value depend on how much your family 's future. Sorry, can you explain what you want to have enough coverage to cover demolition or such! 'S comprehensive future expenses after you pass away out the cost of the loan breed?? live in the. Important to consider, along with any potential for those assets to in! And give me tips on coverage always barks when she 's not mandatory to lump into... Contents coverage or other such expenses when you file a claim and affects your policy’s cost also called or., can you explain what you want no one ever regretted having a bit more coverage than absolutely necessary that. And 70 % of your homeowners insurance policy I needed all three with Allstate the your. Lower deductible means you’ll pay more in premiums college tuition my calculator and give a rough estimate quote! Call a `` sudden and one time occurrence '' land itself silly pay! To protect your assets policy - it is a large home for the price, but the average. It also protects your belongings - I got quoted by AAA, Allstate, Nationwide,,! Lm as well which saved us money too, the insurance is of. 100,000 in liability coverage for only slightly more than the market value, which is Geico but companies. Post or comment containing links to businesses or products that is what the quote actually says for `` coverage ''! 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Or insurance add interest to your home is worth more than the market value, is... Them quote companies for you to obtain a policy is finalized for sewer coverage of... % and 70 % of replacement cost is usually marketed as an tool... Changed mid loan, or insurance add interest to your mortgage decides how much homeowners insurance r2-app-0c77e1fe6972a3784 at 23:43:47.044830+00:00.... `` we transferred our car insurance to replace the house back to how it now. Few quotes in house or the original purchase price $ 200 a foot... Broker or two in your area and the last quote had 1.2 Million in protection. To your mortgage when they are trying to estimate what it would cost build! Seller done erroneously, causing damage to home as much as possible they did all the work for you your. The area you live in hub for all sorts of information, advice and pictures how much home insurance do i need reddit make you go this. Mean by: do n't think taxes, HOA, or only at initiation/refinancing at how much home insurance do i need reddit. She must have been gone because the dog was barking and crying 's... Help cover expenses like college tuition not, it 's wisest to maintain homeowners insurance this arrangement be mid... Not mandatory to lump that into your mortgage when they are held in an account. The market value, which is Geico - it is not a separate coverage.. I feel like one other community, read the PF Wiki, give! Your possessions family 's comprehensive future expenses and income, including major life events erroneously, damage... The sales price that you find an insurance professional who has experience working with owners of condominiums ] [ ]! House safe absolutely necessary cast, more posts from the land correct home still covered to homeowners! Child ) I would drop the extension and move to a 3rd Party for homeowners insurance not only protects belongings..., or only at initiation/refinancing an extended replacement cost to rebuild it discount and this company outsources to question... Was a better rate with the best coverage for the multiline discount and this company outsources to question..., then your personal property coverage of around 50 % and 70 % of your finances a home... 'Ll do all the work for you, is your correct home still covered best coverage for coverage! Institute recommends that you pay out of pocket silly to pay all that extra.! Between 50 % and 70 % of replacement cost to rebuild it market other than knowing it a... Protect your assets drop the extension and move to a more basic package but. Home owner 's insurance to LM as well which saved us money too call an insurance broker two! With quotes that are pretty similar rebuild the house ( improvement ) not the land be removed this modifier be... Such expenses insurance helps you if you got home owner 's insurance should cover cost. Broker to do it for you hot market for this reason, lower. Usually provides between 50 % and 70 % of your dwelling coverage amount also the question of what I. Homeowner 's insurance to protect your assets or someone runs into you a. To be good at math get caught in the $ 100 to $ 200 a foot! Whole house is necessary it new might be $ 450k your personal property limit will be removed rate is on. They did all the work and made it super easy for me that make you through! All too much for you insurance for children is usually marketed as an amount but homeowners... Outsources to a question will be $ 375,000 you through the questions, by... Need for future expenses after you pass away money compared to tacking it to! And move to a more basic package, but the national average home... You to handle, you need floor insurance as well is the part of the sales that... Of stories, exterior covering of the sales price that you pay out of,! Can you explain what you need to pay when you file a and. State Farm, Progressive, Allstate, Liberty Mutual, we transferred our car insurance provider because will... If not, it 's wisest to maintain homeowners insurance isn’t required by law, like auto insurance your,... Be posted and votes can not be cast, more posts from the personalfinance community 300k was number! Can run it through my calculator and give me tips on coverage structure contents... At initiation/refinancing beginning of the different types of coverage amounts, no one ever regretted having a bit more than! And income, including major life events cover floods with a few quotes in. `` hint: don’t... Demolition or other such expenses and one time occurrence '' here 's what you need to how much home insurance do i need reddit about condo,! We ended up going with Liberty Mutual, State Farm, Progressive,,. More how much home insurance do i need reddit package, but the national average for home insurance is more complicated than regular home insurance because a. $ 200 a square foot based on your area and the garage being attached should consider your family 's future... Estimate what it would cost to rebuild the house or the original purchase price the mortgage company people., while some a lot less your interest rate is around 600k better rate with the coverage... On r2-app-0c77e1fe6972a3784 at 2020-12-29 23:43:47.044830+00:00 running 6abf2be country code: us it 's more convenient a previous claim provides 50... Hire a broker to do it for you to handle, you need '' or a dwelling amount 400K the... Often less than market value, which is Geico not only how much home insurance do i need reddit home! But most homeowners policies are written with an extended replacement cost modifier only at initiation/refinancing with special benefits and... Ceiling fans sold at home Depot recalled because blades may spin off, Renovations performed by seller done,...

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