OT home insurance message board

exodia

Does anyone know of a good message board for Home insurance questions ?

My agent and I are having a disconnect on replacement value versus market value.

Thanks

Tom

goose3

try here on General Discussion. The one guy there is an insurance guy

kidsox

I have Met Life homeowners. My agent accepted SMR as the benchmark of value and I added sportscards to the policy, much as you would insure artwork.

cjb1977

I am a multi-line insurance adjuster, maybe I can help you. Let me know where the disconnect is.

FYI in order for you to collect RCV you must actually replace the item or you are given ACV/Market Value. ACV/Market Value is the value of item at the time of the loss.

exodia

OK

This not card related. I will use sample numbers for my home owners insurance


The tax appraised value of my home is $ 100. This is very close to the market price based on recent sales and on the market comps.

I estimate the land is worth $ 33 and the home is worth $ 67. The land value is close to a recent lot that sold for $ 40.

The insurance value of the home is $ 86. This seems to be much higher than the appraised value of $ 67.

My agent tell me there is no correlation between the market value of the home minus land ( $67) and the replacement cost value ( $ 86).

I disagree , while the correlation is not perfect , there seem to me to be some relationship between market value and replacement cost. I my home is over insured. I live in the Boston area

The insurance value on last year policy was $ 75.



Thanks

Ironmanfan

Exodia, I am a licensed insurance agent & (basically speaking) market value has nothing to do with it. The company is promising to "rebuild" your home should there be a total loss, not "sell" your property as a realtor would. For the majority of the population the cost to rebuilds their homes far exceeds their relative market value (I will also add that the cost of building materials in the past few years has outpaced regular inflation). I have similar discussions with my policyholders everyday. Hope this helps.

Ironmanfan

Also, things that affect a homes "market value" such as location, the condition of your neighbors property, whether their is a school, park or adult book store across the street are "blind" to your insurance policy .

RipublicaninMass

<< <i>Also, things that affect a homes "market value" such as location, the adult book store across the street are "blind" to your insurance policy . >>



You can go blind from that?? I thought that was only an old wives tale

stown

<< <i>Exodia, I am a licensed insurance agent & (basically speaking) market value has nothing to do with it. The company is promising to "rebuild" your home should there be a total loss, not "sell" your property as a realtor would. For the majority of the population the cost to rebuilds their homes far exceeds their relative market value (I will also add that the cost of building materials in the past few years has outpaced regular inflation). I have similar discussions with my policyholders everyday. Hope this helps. >>



Exactly.

Think of it this way, if your home burns to the ground, you still have the land.

In regards to building costs, the premium had not kept up with building costs (ie concrete, labor, dry wall, lumber, ect). Therefore, they have been sorta catching up and used Katrina as a good excuse. Prices will start coming down but still be at least 25% higher than a year or so ago.