House Insurance - How Does It Work? (1 Viewer)

[Colton]

Thanks for the great replies. To answer a few questions, our house was built in 1983. We are currently insured with AAA since they had the best price. The house was recently appraised at $120,000 although we purchased it for $115,000. If it was ever destroyed - I would want it to be rebuilt exactly as it was.

- Colton

 

[Jay Taylor]

Colton, be sure you find out what it would take to rebuild your home with the same features and size rather than relying on the appraised value to determine your insurance needs. Removing the old debris and replacing it with a brand new home could be significantly more than the appraised value of your 22-year-old home.

The good news is that if a disaster did occur and you rebuilt a new home of the same size your appraised value would probably be much higher because the home would be brand new.

 

[Peter Burtch]

YMMV. Depends on the policy, and which company you are working with. My parents' best friends had a major home fire a few years ago. Their 6 mo. old Infinity (auto) was replaced. Allstate or State Farm was their insurer.

best,
Pedro