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Dragoon
Tulane Fan
Member since Jul 2019
76 posts

How Much Of My Home's Dwelling Cost Should I Insure For?
Looking at adjusting our premium; 80% versus 100% will save considerably on the premium, but we don't want to be underinsured.

Our carrier (USAA) had the highest dwelling cost estimate of any of the other 5 companies we received quotes for, so chances are good they could be inflating the actually re-build cost.

However, I don't know how to accurately gauge the re-build cost without going through an agent, and I can't trust them due to their bias.

USAA dwelling cost at 100% is roughly $216 per square foot; location is Southern Pines, NC.



This post was edited on 8/12 at 10:52 pm


Golfer
LSU Fan
Member since Nov 2005
72626 posts
 Online 

re: How Much Of My Home's Dwelling Cost Should I Insure For?
quote:

USAA dwelling cost at 100% is roughly $216


You’re looking to save a few bucks a year to forgo 20% in proceeds from a total loss?


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reb13
Ole Miss Fan
Dallas, TX
Member since May 2010
10773 posts

re: How Much Of My Home's Dwelling Cost Should I Insure For?
I just had the same experience, USAA was $100k higher on rebuild but $300 a year cheaper. Allstate was apples to apples pretty close to USAA. Do you have a mortgage? Don’t they make you have 100% coverage?
This post was edited on 8/12 at 9:58 pm


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Mr.Perfect
LSU Fan
Louisiana
Member since Mar 2013
16646 posts
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re: How Much Of My Home's Dwelling Cost Should I Insure For?
Just remember there is usually a difference in the replacement cost and the actual cash value


Dragoon
Tulane Fan
Member since Jul 2019
76 posts

re: How Much Of My Home's Dwelling Cost Should I Insure For?
Agreed, just want to make sure I'm not over-insuring as well.


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TDsngumbo
USA Fan
Member since Oct 2011
17625 posts
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re: How Much Of My Home's Dwelling Cost Should I Insure For?
If you insure it for 80% of the replacement cost, any claim you have will only be covered at 80% of whatever the amount of that claim is. Total loss or not.

Hailstorm comes through and causes $10,000 in damage to your roof? You only get covered up to $8,000 minus your deductible.

Underinsuring your home is dumb.
This post was edited on 8/13 at 8:14 am


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bayou choupique
LSU Fan
the banks of bayou choupique
Member since Oct 2014
1181 posts

re: How Much Of My Home's Dwelling Cost Should I Insure For?
quote:

USAA dwelling cost at 100% is roughly $216 per square foot; location is Southern Pines, NC.


i had usaa for years until i shopped their number. I live in Holly Springs NC and went to Farm Bureau. The auto was about the same but the home owners was a big savings for similar coverage.


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TigerTatorTots
New Orleans Pelicans Fan
The Safeshore
Member since Jul 2009
74919 posts

re: How Much Of My Home's Dwelling Cost Should I Insure For?
quote:

If you insure it for 80% of the replacement cost, any claim you have will only be covered at 80% of whatever the amount of that claim is. Total loss or not.

Hailstorm comes through and causes $10,000 in damage to your roof? You only get covered up to $8,000 minus your deductible.
This seems wrong


MsState of mind
Mississippi St. Fan
State of Denial
Member since Aug 2013
1814 posts

re: How Much Of My Home's Dwelling Cost Should I Insure For?
Just insure it to replacement cost. Marshall and Swift will do the RCE and that’s what appraisers use when doing the “cost” approach.


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Ric Flair
LSU Fan
Charlotte
Member since Oct 2005
10386 posts

re: How Much Of My Home's Dwelling Cost Should I Insure For?
In NC, check prices for Amica. We have been pleased with their service.

Is your house on a 30 acre lot or a 1/3 acre lot? Over $200 sq/ft to rebuild seems awfully steep for just the dwelling for anywhere in the south.
This post was edited on 8/13 at 7:22 pm


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Tiger Prawn
LSU Fan
Member since Dec 2016
12390 posts

re: How Much Of My Home's Dwelling Cost Should I Insure For?
quote:

If you insure it for 80% of the replacement cost, any claim you have will only be covered at 80% of whatever the amount of that claim is. Total loss or not.

Hailstorm comes through and causes $10,000 in damage to your roof? You only get covered up to $8,000 minus your deductible.
In LA, 80% is the minimum amount of coverage to avoid a co-insurance penalty. If you're insured at 80%, then you get paid the full amount on the claim, minus only the deductible. But if you're at 79% then you're getting a 21% co-insurance penalty plus the deductible taken out.

OP said he's in NC, so I don't know the insurance law there. I'd still recommend insuring for 100% of value (and the insurer may require you to), but if the 80% rule is the same in NC as it is in LA, then at least stay 90% or better. You don't want to cut it close to 80% where you even risk the possibility of having a claim, adjuster coming out, then them saying your replacement value is actually a little higher meaning you're slightly below 80%.



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