Since I need to start the homeowners insurance hunt; I see a lot about 'replacement cost of home'. Is there a formula or percentage to estimate this cost?
Thanks!
skew
Posted:
Member since
Re: Insurance - house replacement cost
i have NO idea if there is a said formula. we were quoted 375k as a replacement cost. that # does even come close to what we are paying for the house (of course we are paying for land and location as well though). i know that land is not factored into the equation.
classylay-d
Posted:
Member since
Re: Insurance - house replacement cost
Hello, I'm an Account Executive for an insurance agency. There is really not a formula I use to determine what the replacement cost is. Most companies that I work with have what is called a Replacement Cost Estimator where it would ask how many rooms, bath, if you have carpeting or wood flooring. It also depends on the square feet of the living area. If you are not sure what you should be insured at you should contact a insurance agent. I seen one too many times where people are WAY underinsured.
Also remember just because you pay $350K for your home that is not what it should be insured at, $350k includes the price of land and insurance companies don't insure the land.
