This topic contains 5 replies, has 1 voice, and was last updated by Anonymous 8 years, 2 months ago.
- May 14, 2011 at 5:23 am #210278
Iam thinking about applying for a credit card online, and I wanted to know once I get approve, will they call me and verify my information like background information, idenity, etc… or will they just send me my card in the mail?
- June 22, 2011 at 2:11 am #325057
Effectively, you have to have your agent review your account, and look at your house.
You have to review the policy to see what the terms are – the coinsurance required, the enhancement endorsement you have on it, etc, and then they have to calculate the cost to rebuild your house.
It’s not a big deal, but NOT something you can do yourself.
- June 22, 2011 at 3:11 am #325058
Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of construction, type of roof, fire protection class, location (inside or outside of the city), age of the dwelling, and building costs in your area. Some companies run credit scores and CLUE (Comprehensive Loss Underwriting Exchange) report to see about undisclosed claims activity.
The best thing to do is call a LOCAL independent agent. Don’t go across town, or to some other city – look for someone CLOSE. Just look in the phone book for the PIA or Big I (Trusted Choice) logos and you will find a professional licensed agent that will be able to help you solve your insurance problems, and give you rate comparisons of several different companies.
An independent insurance agent will normally have a dozen different companies and if he cannot help you, he should be networked with other local agents that can.
Some companies supply their agents with “costimators” that can be as simple as “$ x per square foot” to some that are as complex as you can get (wanting to know the percentage of hardwood flooring versus carpet, versus tile and type of wall covering – paint versus wallpaper versus paneling)
Like MB said, it would be best to contact your agent and have them review your file. You need to do this periodically just to see if there are any better deals. Some companies give credits whem you insure the dwelling to 100% replacement cost but be careful NOT to falll below 80% replacement to avoid any co-insurance penalties.
Good luck and I hope this helps!
- June 22, 2011 at 3:15 am #325059
The standard form of calculation observed is via the individual insurance carrier’s Replacement Cost Estimator (RCE) which is a computer program based on the following:
Age of Home
Type of roof covering (shingle, concrete tile, tar & gravel, etc.)
Shape of Roof (geometry hip vs. gable vs. falt, or other
Construction Type (frame, masonry block, brick, etc.)
Foundation (on the slab, basement, crawspace, piers, etc.)
Heated Sq Ft
Attached structures (porches covered or open, wood decks, screen porch enclosure, enclosed glass porch, garage, etc.
How many bathrooms
French, sliding doors, french, bay, atrium windows
Kind of installed flooring
and on it goes depending on that company’s desire for detail and specifics. The key word to understand it is only an ESTIMATOR and all estimators are subject to the input influence of the operator and their interpretation on completing the valuations fill-in-the blank along with that company’s established value factors based on a pre-set per sq. ft. dollar figure, etc..
I have had the same home have a 30k swing value because of interpretation between companies and agents. It is important to have your home insured properly because the goal of insurance is to help you recover but not profit from. If you are underinsured, then it will be up to the policy declared limit and you will have to seek the balance. If it is over insured, then it will be paid at the believed replacement value and you have paid all that extra premium of the balance difference for no reason
Some policies have a language that if you do not insure your home with xx% of the replacment cost, then claims will be paid out at Acutal Cash Value (translation – nickel and dime you, pro-rata depreciated) not to exceed the policy declared limit in lieu of fair replacement cost up to the declared policy limit. The standard % is 80, however I have recently seen some state 100% because of the recent aftermaths of hurricanes, tornadoes, earthquakes, and fires have created a turmoil and lawsuits for insurance companies “paying under” the coverage limit for underinsured homes.
If you feel you have a good relationship with your insurance agent and trust their judgement of valuation, then your agent will serve you best in which you sit and discuss the amenities of your home as he/she completes the estimator program. Otherwise, hiring an independent State Certified Appraiser to walk you property inside and out should be the more accurate determination of replacement. The figure you will want to look at is called Total Cost Estimated Like New. This is the believed raw value minus land (as most home policies do not include insurance for it) and market value (location, location, location just simply means who is willing to pay how much for my home).
Before investing in the cost of an appraiser, it is important to ask your agent if the insurance company insuring you honors such reports. Unfortunately, the past years of the mortgage loan industry fostered a distrust with appraisals from some insurance companies because the appraiser was issuing the figures to meet the guidelines of the loan approval instead of truly evaluation of cost. This sometimes would create a $ 67/sq ft replacement figure to as high as $ 233 /sq ft in comparable neighborhoods because of the loan, when the average cost was established as $ 110-$ 125 per sq ft. range tt rebuild.
It is important to have your home valuation done no later than every 2-3 years as costs radically change over time. Ideally, it should be done annually
Hope that help.
- June 22, 2011 at 3:49 am #325060
According to Marshall & Swift/Boeckh, a company that monitors property values for the insurance industry, 58% of single-family homes are not insured for the full cost of rebuilding them. On average, these homes are underinsured by 21%.
Many insurance companies offer “extended replacement cost” on their homeowner’s policies. This allows for up to 20% more than the stated coverage to be paid toward replacement costs. Marshall & Swift/Boeckh takes this coverage into account when calculating underinsurance, however, so the insurance gap remains.
To avoid underinsurance, read your policy to see if your policy offers extended replacement cost coverage. If so, find out how much coverage you have. If you have been in your home for a few years and especially if you have made substantial upgrades to it, contact your insurance agent for an analysis of your home’s replacement cost. This could result in increased premiums, but the additional amount you pay will be well worth it.
- June 22, 2011 at 4:16 am #325061
You should contact a local agent who can run a cost estimator on your house. You might want to make sure you are insured with a company that covers 125% of your listed dwelling amount. I always thought that was a nice feature since house prices can go up significantly in a year. A local agent would be happy to help you through this.
To connect with a local agent, fill out the quote form located at . A local agent will contact you and help you get started.
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