I'm shopping insurance right now and noticed a difference between my current insurance companies replacement cost ($1M) and what another company was proposing ($600K). Both of them supposedly use an outside service to determine the replacement cost, so not sure why they would be so far off. These are both large insurers as well, Allstate and Farmers.
With Allstate, they were my insurer when I purchased the house for around $500K and are aware of updates I had done (addition, roof, siding, etc).
With Farmers, they say they use similar tools to us, but theirs came in much lower and, as a result, the premiums are much lower. I have no idea what the cost of rebuilding my house would be, but don't want to be underinsured. Does anyone have experience with this? I believe Farmers does have a rider called "Guaranteed Replacement Cost" in case there is a gap, but the agent seemed to think their number for rebuilding would be accurate. I guess that are assuming a price of $230 per SF.
With Allstate, they were my insurer when I purchased the house for around $500K and are aware of updates I had done (addition, roof, siding, etc).
With Farmers, they say they use similar tools to us, but theirs came in much lower and, as a result, the premiums are much lower. I have no idea what the cost of rebuilding my house would be, but don't want to be underinsured. Does anyone have experience with this? I believe Farmers does have a rider called "Guaranteed Replacement Cost" in case there is a gap, but the agent seemed to think their number for rebuilding would be accurate. I guess that are assuming a price of $230 per SF.
Statistics: Posted by davebo — Wed Jul 31, 2024 12:09 am — Replies 1 — Views 183