Homeowners insurance, am I paying too much?

[amarowsky]

I was curious if I am paying too much for my insurance. The coverage amount was generated solely by my insurance company (AAA). But the coverage amount is substantially higher than either the market cost or the estimated rebuild value.

Coverage amount: $262,000
Market Price approx: $145,000
Complete rebuild cost estimate (@$135/ft^2): $193,000
Annual Premium: $833

This just seems kind of high. I really don't know what most other people are paying. I was wondering if I should look into lowering this, or if it is fairly normal cost across the board.

[feh]

Do some comparison shopping. Go online and get some quotes.

[kork13]

Your insurance coverage includes enough for a catastrophic loss... Think "tornado destroyed everything" or "flood swept the house away". So that includes your rebuild cost, plus replacement of everything that's in your house (furniture, clothes, electronics, all other possessions), plus temporary lodging after the disaster. The numbers you have all sound pretty reasonable.

[Nutria]

"flood swept the house away".

Probably not. Need Flood Insurance for that.

[kork13]

Probably not. Need Flood Insurance for that.

Ok, not a flood.... Point is, the maximum is there to assume a total & catastrophic loss of everything

[bjl584]

Homeowner insurance, like auto insurance, can vary greatly by region.

The best advice is to shop around and get a few quotes.

[greenskeeper]

I was curious if I am paying too much for my insurance. The coverage amount was generated solely by my insurance company (AAA). But the coverage amount is substantially higher than either the market cost or the estimated rebuild value.

Coverage amount: $262,000
Market Price approx: $145,000
Complete rebuild cost estimate (@$135/ft^2): $193,000
Annual Premium: $833

This just seems kind of high. I really don't know what most other people are paying. I was wondering if I should look into lowering this, or if it is fairly normal cost across the board.

Does your property have any land? Seems odd that the rebuild cost is higher than the market price since you don't insure the land.

My homeowners insurance is about $600/yr and the market value of the house is $260k but the rebuild cost is around 180k

[Joan.of.the.Arch]

The rebuild price can be more than the market price. Sometimes it has do do with the increased price of using materials comparable to the original.

Amarowski, I'll have to get out my insurance records to see what we pay. It comes due in two months (we pay yearly) and I don't recall how much it is for how much coverage.

[greenskeeper]

The rebuild price can be more than the market price. Sometimes it has do do with the increased price of using materials comparable to the original.

I've never seen a higher rebuild price compared to market price. Not in any type of real estate private or commercial.

[Jluke]

For rebuild, you may need to take into consideration costs for tear down and removal of debris from your property prior to rebuilding.

[broke-buddy]

I was curious if I am paying too much for my insurance. The coverage amount was generated solely by my insurance company (AAA). But the coverage amount is substantially higher than either the market cost or the estimated rebuild value.

Coverage amount: $262,000
Market Price approx: $145,000
Complete rebuild cost estimate (@$135/ft^2): $193,000
Annual Premium: $833

This just seems kind of high. I really don't know what most other people are paying. I was wondering if I should look into lowering this, or if it is fairly normal cost across the board.

Is there a reason you have a coverage so much higher than your house value? I am asking because I am in the same situation. I figure the insurance company will do what it can to cover the minimal and anything of of value will be denied due to lack of receipt or lack of evidence it was in the house or actually covered.