Homeowner's Insurance Question... | TigerDroppings.com

Posted byMessage
GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8539 posts

Homeowner's Insurance Question...



We're building and I'd like to know what to ask the Agents we're thinking of using to put into a quote.

Obviously we want Dwelling, Other Structures, Personal Property, Loss of Use and Personal Liability.

But how much coverage should we be asking for in regards to all of these?

TDMT Insurance Experts, ASSEMBLE!!!!!!!!







Back to top
Share:
wickowick
LSU Fan
Head of Island
Member since Dec 2006
23457 posts
 Online 

re: Homeowner's Insurance Question...


Going to depend on how much stuff you have and how much house you buy. The standard is the replacement cost on the home, other structures (outbuildings, driveways, fences, etc) is 10% of the dwelling coverage and the contents is a percent of dwelling. Lots of use is usually an incurred cost...





Back to top
  Replies (0)
nogoodjr
Member since Feb 2006
283 posts

re: Homeowner's Insurance Question...


I am not an agent, but I did loose a house to fire in 2007. You tell the agent the square footage and they work a formula to determine replacement cost. You don't have to use their number, but normally if you do you will get a 20% increase in coverage if needed.

Example 300,000 house.
270,000 replacement cost (slab and lot not insured)
If needed you will get another 54,000 in coverage.

Tearing down and rebuilding is expensive and the 20% extra is good to have. Personal property is normally a percentage of dwelling coverage. Additional expenses are pretty standard. Add riders for things you have above standard coverage limits.

Example guns (more than 2k), jewelry (very expensive), art ect..






Back to top
  Replies (0)
CHSBears
Texas A&M Fan
Baton Rouge
Member since Aug 2007
518 posts

re: Homeowner's Insurance Question...


I would also look into a large umbrella policy.





Back to top
krange1
LSU Fan
Destrehan, LA
Member since Mar 2012
171 posts

re: Homeowner's Insurance Question...


If you're looking to get full replacement cost on your dwelling the average is $100-$110 dollars per sqft. Example 1600 sqft building will be in the realm of 160,000 to 166,000. Your agent should get more details of the description of your dwelling and will run a remplacement cost estimator for you.

Most homeowners have the formula
Dwelling (example 200,000)
Other Structures 10% (20,000)
Personal Property starts out at 50% (100,000)
Liability starts at $100,000.
Loss of Use/Additional Living Expense is different through each company. Some may not even have it.
If you're in Louisiana you may want to look into the hurricane deductible. Some companies offer a 2% hurricane deductible and some offer as high as 5%.
Since you are building, a hip roof recieves a discount on most homeowners policies.






Back to top
  Replies (0)
rpg005
Member since Apr 2010
672 posts

re: Homeowner's Insurance Question...


quote:

I would also look into a large umbrella policy.


An umbrella policy does not cover property-- it is only an excess to your primary liability coverage.






Back to top
CHSBears
Texas A&M Fan
Baton Rouge
Member since Aug 2007
518 posts

re: Homeowner's Insurance Question...


What are you going to do when a minor child of yours gets in a wreck and in a civil case of wrongful death has a 1 million plus judgement against him/her/you and your assets.





Back to top
rpg005
Member since Apr 2010
672 posts

re: Homeowner's Insurance Question...


quote:

Obviously we want Dwelling, Other Structures, Personal Property, Loss of Use and Personal Liability.


Give the agent details about the house. Sq Footage, # of bedrooms/baths, etc...They will come up with a replacement cost. The other coverages are a percentage of your dwelling. It can be increased but typically not decreased.

I would schedule all of your art, guns, jewelry, etc, if they are over $2500 in value.






Back to top
rpg005
Member since Apr 2010
672 posts

re: Homeowner's Insurance Question...


quote:

What are you going to do when a minor child of yours gets in a wreck and in a civil case of wrongful death has a 1 million plus judgement against him/her/you and your assets.


Thats liability coverage, not property. Most companies require you to have a minimum of $250/500 limits on your auto insurance to get an umbrella. If the insured had a $1,000,000 umbrella in this situation he would be covered for $1,250,000-- if more than one person in the vehicle then he would be covered for $1,500,000.

An umbrella has nothing to do with how much coverage you have on your dwelling, contents, etc.






Back to top
  Replies (0)
wickowick
LSU Fan
Head of Island
Member since Dec 2006
23457 posts
 Online 

re: Homeowner's Insurance Question...


quote:

I would schedule all of your art, guns, jewelry, etc, if they are over $2500 in value.


I would get a stand alone policy for the jewelry and guns.

Jewelry is likely to be lost or stolen due to the value, size and amount it is worn. I don't want to file a homeowners claim and jack up my home rates.

For guns, different policies have different limits. I have a stand alone policy for guns that is a blanket coverage for up to $35k for $135 per year. Appraisals are needed on any one gun if the value is more than $10k. Covers everything except flood (because I live in a flood zone)...






Back to top
  Replies (0)
Chad504boy
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
80697 posts

re: Homeowner's Insurance Question...


quote:

We're building and I'd like to know what to ask the Agents we're thinking of using to put into a quote.

Obviously we want Dwelling, Other Structures, Personal Property, Loss of Use and Personal Liability.



Dwelling Value: Replacement cost of home maybe plus a tad more just in case
Other Structures: 10% unless you need more
PP: 50%-70% depending on what you need
Loss of Use: 20% pretty standard
PL: 300k minimum... sometimes only roughly $20 more to go to 500k



This post was edited on 3/20 at 2:32 pm


Back to top
GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8539 posts

re: Homeowner's Insurance Question...


Home appraised for $145K
Dwelling Coverage: $145K
Other Structures: $2.9K
Personal Property: $72.5K
Loss of Use: $29K
Personal Liability - Each Occurrence: $100K
Medical Payments to Others - Each Person: $1K

Additional Coverage Included:
Personal Property Replacement Cost: $5K
Fungi, Mold, Wet/Dry Rot Included Water Backup/Sump Pump: $5K

Total Cost: $700/year.






Back to top
wickowick
LSU Fan
Head of Island
Member since Dec 2006
23457 posts
 Online 

re: Homeowner's Insurance Question...


quote:

Other Structures: $2.9K


Low, got a fence, shed, driveway, tree (even if it isn't yours) that falls on any of those (cut up and removal)...






Back to top
  Replies (0)
Chad504boy
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
80697 posts

re: Homeowner's Insurance Question...


quote:

Home appraised for $145K
Dwelling Coverage: $145K
Other Structures: $2.9K
Personal Property: $72.5K
Loss of Use: $29K
Personal Liability - Each Occurrence: $100K
Medical Payments to Others - Each Person: $1K

Additional Coverage Included:
Personal Property Replacement Cost: $5K
Fungi, Mold, Wet/Dry Rot Included Water Backup/Sump Pump: $5K

Total Cost: $700/year.


Whatever agent is trying to sell you 2% other structures and 100k liability is a sleezeball agent trying to get the premium as loww as possible to only get a sale. Word of advice, buy from someone else.






Back to top
GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8539 posts

re: Homeowner's Insurance Question...


quote:

Chad504boy
quote:

Whatever agent is trying to sell you 2% other structures and 100k liability is a sleezeball agent trying to get the premium as loww as possible to only get a sale. Word of advice, buy from someone else.


This will be the first-ever HOI and home purchase, so explain to me why 100K is sleazeball?

Also, I have no other structures like a shed or awning that I'm building. So what would "other structures" cover outside of those things?






Back to top
Slickback
New Orleans Pelicans Fan
Deer Stand
Member since Mar 2008
26080 posts

re: Homeowner's Insurance Question...


Liability is inexpensive with a HO policy. Probably only another $20 or so to go up to $300k and probably only another $10-12 on top of that to go up to $500k. With our litigious society, you are almost more likely to be sued over a liability claim than have a total loss on your house.


Whatever company you go with will insure your home for replacement cost, therefore they will run a replacement cost estimator (based mainly on sq ft, along with some other items) and you will be required to insure your home for at least that value.

Make sure you get replacement cost on your home and personal property and increased replacement cost on your home.






Back to top
  Replies (0)
donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
12218 posts
 Online 

re: Homeowner's Insurance Question...


quote:

This will be the first-ever HOI and home purchase, so explain to me why 100K is sleazeball?


It isn't necessarily sleezeball, but 100k isn't a lot in the scheme of things. The price for 300k or 500k isn't much more, so it's worth it to protect yourself.






Back to top
  Replies (0)
Chad504boy
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
80697 posts

re: Homeowner's Insurance Question...


quote:

Also, I have no other structures like a shed or awning that I'm building. So what would "other structures" cover outside of those things?



driveway, a fence if you get one.






Back to top
  Replies (0)


Back to top