Condo insurance is more complicated than regular home insurance because of the different types of HOA policies and regulations. [–]juliaplayspiano 0 points1 point2 points 3 years ago (0 children). You car insurance helps you if you accidently run into someone or someone runs into you. One thing I did not like with this agent is that he would not quote me a home owners price without also quoting car and umbrella coverages. Homeowners insurance isn’t required by law, like auto insurance. use the following search parameters to narrow your results: If you have questions about home projects, maintenance, repairs, or even buying your first home, this is the place to ask. [–]volyund[S] 0 points1 point2 points 3 years ago (3 children). She never responded. So 30 years of taxes or 30 years of insurance. [–]pennyx2 1 point2 points3 points 3 years ago (0 children), "First off I want to give you the advice that if you can afford it DON'T escrow your taxes, HOA, or insurance. My quotes also had wide variations in what different companies decided the dwelling amount should be, though they were all at least twice what I paid for the house 4 years ago. You can decide what kind of deductible you're comfortable with. Car insurance. Updated: November 2019. If you do have this much money and are willing to take the risk of having to use it if your house is destroyed, then that's your choice. [–]volyund[S] 0 points1 point2 points 3 years ago (0 children). Look into companies that have agents in your area, that way if you ever have an issue, you can just give them a call rather than having to go through an automated service. The sellers said they had no prior sewer issues. In this example if you got home owner's insurance to cover $750k you would simply be overpaying. Get an ad-free experience with special benefits, and directly support Reddit. My understanding is that us grow things for the life of the loan. The structure of your home. When I got my home owners insurance most recently at Travelers the guy asked me about 20 questions about the details of the house and quoted the insurance from there. King county property viewer will actually break the value of land vs improvements, if you want an idea of how they value the split. However, there are better options available. If not, it's wisest to maintain homeowners insurance for financial protection. How much life insurance do you need? Insurance company will send someone to your home to perform an assessment before a policy is finalized. In fact they've been more than twice as expensive at times. I don't know the technical terms, but so far, my list contains:-damage to my stuff (minimum amount, I added it up and I don't have that much stuff)-liability (is 100,000 enough? The best example I have is to think about your homeowners insurance like your car insurance. If you have some more details I can run it through my calculator and give a rough estimate. Investment properties are usually a fair market value. I am sorry, can you explain what you mean by: DON'T escrow your taxes, HOA, or insurance. Worth it. This subreddit gets a lot of spam and often good posts get caught in the filter. How do I find out the cost of the house separate from the land? They are there to give you what you want. © 2020 reddit inc. All rights reserved. [–]bippitybippityboop 0 points1 point2 points 3 years ago (0 children). For instance, my agent originally quoted me the "Gold Package" which protected a lot of shit that wasn't applicable to me (like having a boat in the agarage, I don't have a boat). Condo insurance, also called HO6 or H-06 insurance, is one of the most complicated home policies to purchase. and join one of thousands of communities. Join our community, read the PF Wiki, and get on top of your finances! [–]penguinseed 1 point2 points3 points 3 years ago (1 child). We are buying the house for $575k. Homeowners insurance not only protects your home, it also protects your belongings. They'll ask questions like whether you have upgraded appliances, whether your floors are wood or carpet, etc to help form that number. [–][deleted] 1 point2 points3 points 3 years ago (0 children). So I'm looking to get my first renters insurance and trying to understand what coverage I need. 780,000 of personal property coverage? In reality, it is a good idea to look into a combination of calculator-based costs and your own figures to estimate how much home building insurance you would need to rebuild your home … If your home is worth more than $250,000 and you’re in a high-risk area, you may actually need both types of coverage. So they looked for a different company and it was a better rate with better coverage. Putting a price on condo insurance is a little more complicated than standard homeowners insurance because the amount of condo coverage you need depends on the extent of your HOA’s existing policy. Remember Liability Coverage: Your homeowners insurance policy doesn't only provide protection for the structure and contents. It's silly to pay all that extra interest. REDDIT and the ALIEN Logo are registered trademarks of reddit inc. π Rendered by PID 24877 on r2-app-0c77e1fe6972a3784 at 2020-12-29 23:43:47.044830+00:00 running 6abf2be country code: US. Homeowners associations (HOA) carry insurance with a master policy, but condo owners are not fully covered through the HOA and need to make sure they are properly protected. Life insurance for children is usually marketed as an investment tool to help cover expenses like college tuition. You finance the rest … Hint: you don’t need to be good at math. Down payment. There is also the question of what coverage to choose, and max payout if rebuilding the whole house is necessary. Generally, home insurance companies default to setting the personal property insurance at 75% of your dwelling coverage. (Boxers are a dangerous dog breed??) Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available and, increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of liability coverage. Some states pay a lot more, while some a lot less. If you go through this with a few different companies you should end up with quotes that are pretty similar. [–]-taradactyl- 0 points1 point2 points 3 years ago (2 children). (At least they don't for me, in Colorado.) Definitely get the quote from your car insurance provider because insurers will bundle discounts on multiple policy lines. Get quotes from a few different companies. I've also found great companies I didn't know existed through an independent broker since they don't just look at the major companies. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. Homeowners insurance also includes personal property coverage of around 50% to 70% of your dwelling coverage amount. Liability Insurance. This changes based on the area you live in. Basically you should carry enough coverage so that someone can come in and rebuild your house the way it is now in the event of some kind of catastrophe. Whether this is enough depends on the total value of your possessions. Sure the earthquake deductible is 20% of the cost of the house but that's less than 100% and a fairly small annual premium. We went through the same company as our auto for the multiline discount and this company outsources to a 3rd Party for homeowners. Don't deny any coverage that would protect you in a real situation. [–]andgiveayeLL 8 points9 points10 points 3 years ago (10 children). foot. First off I want to give you the advice that if you can afford it DON'T escrow your taxes, HOA, or insurance. Insurance paid out for a repair...but no company in the area does "repair" they only want to install new complete fences. In hot housing markets this is often less than market value. Usually this is in the $100 to $200 a square foot range. How much homeowners insurance do I need? The amount of life insurance you need may depend on how much your family will need for future expenses after you pass away. Usually this is in the $100 to $200 a square foot range. If it is a custom home with plaster and wood work from 1920, far from the city or in an urban area, then maybe $175 or $200. 100/300/100 is a good amount of coverage. [–]volyund[S] 0 points1 point2 points 3 years ago (1 child). Since NFIP policies are typically (but not always) less expensive, consider carrying the maximum amount of coverage through NFIP combined with coverage through a private insurer. Could someone please recommend homeowners insurance companies, and give me tips on coverage. [–]volyund[S] 1 point2 points3 points 3 years ago (4 children). Rendered by PID 24877 on r2-app-0c77e1fe6972a3784 at 2020-12-29 23:43:47.044830+00:00 running 6abf2be country code: US. Please check the new queue after posting. Yep. Having $1.2 million of coverage for a house with market value of $400k doesn't make sense to me, I can't imagine a situation where replacement cost would be 3x market value, unless the house is full of art and collectibles or something. Life insurance. They are figured separately. It seems like each company offers different services. For this reason, the Insurance Information Institute recommends that you find an insurance professional who has experience working with owners of condominiums. How much do you save paying them in lump sum at the beginning of the year? Keep in mind that this is different from the current market value of the house or the original purchase price. Land is a significant cost of your home in a market like Seattle, so even though you are paying $575k don't be surprised if they come back and say you only need $200k worth of coverage. Well that all depends on how much you escrow and what your interest rate is. It'll be one call and they'll do all the work for you, for free. (self.homeowners). They did all the work and made it super easy for me. Any post or comment containing links to businesses or products that isn't a direct answer to a question will be removed. I own no art and could refurnish my current house for about 15 grand. I don't think taxes, HOA, or insurance add interest to your mortgage when they are held in an escrow account. What types of coverage do I need… How much condo insurance coverage do i need ? How much personal property coverage do you need? Buying first house, need advice on homeowners insurance. I texted her yesterday morning letting her know the dog was barking and crying. Now the home costs $400K and the last quote had 1.2 Million in dwelling protection on it. Your insurance company will be pretty good at asking you questions that will determine probable replacement cost so if they came back with $300k I would have some confidence in it. Things like central air and a finished basement also effect the cost but you want to be careful of an agent selling you on an extended amount as opposed to an actual inflated amount. If you have a good safety net and think you could absorb a $2000 deductible instead of a $1000 deductible, you could save money on your premium. Around $300k was the number we got yesterday. In most cases you look at a primary residence as a full reconstruction cost. So if your house's RCV is $500,000, then your personal property limit will be $375,000. Part of the value of the house when it is sold is the land which is usually not covered in any way by home owner's insurance. Typically, the higher your homeowners insurance deductible, the lower your premium. [–]penguinseed 4 points5 points6 points 3 years ago (6 children). I'm in a situation where I have a modest home (which will be paid for in the next 1.5 years) and have plenty of savings to supplement insurance should disaster strike, so I'm comfortable with a coverage amount on the lower end. Press J to jump to the feed. However, the person who prepares your quote will give you a number of what they believe total loss coverage should look like for your house, based on the information they have from public data and from what you will tell them. First, know that liability coverage is a requirement in nearly every state so, unless your state offers some other option (such as posting a surety bond of a certain amount) and you choose to take that option, chances are you have to purchase liability insurance.. Now, it boils down to determining how much to purchase. Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. While not all advice on Reddit is solid, there are plenty of Redditors who know what’s going on — even when it comes to complex subjects, like taxes and insurance. [–]techmaster242 2 points3 points4 points 3 years ago (1 child). Buying first house, need advice on homeowners insurance. You can add all those extra costs into your mortgage meaning that you take out extra money to cover those costs...and pay interest on it. I'm not an expert, but in my research and experience, insurance companies base the coverage amount on the cost to rebuild a similar home. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. That's what I did. Thanks, that's really helpful. Several agencies turned me down for silly reasons. A deductible decides how much you will have to pay when you file a claim and affects your policy’s cost. Replacement cost is usually based on some cost per square foot based on your area and the type of house it was. [–]typemgtst 8 points9 points10 points 3 years ago (5 children). If you live in a "low quality" house (say a home built by a builder with 20 other homes in the same neighborhood in 1980) in a suburb of a major city, maybe $115/sq. The whole policy seems like it was written for someone else. What is standard in these cases? We ended up going with Liberty Mutual, we transferred our car insurance to LM as well which saved us money too. Do you mean that we should pay those things separately from the monthly mortgage payments, where they would be included otherwise (my understanding of it)? foot. [–]saml01 0 points1 point2 points 3 years ago (0 children). We are buying a house (our second home purchase) and I am trying to shop for homeowners insurance. Ask for quotes for both scenarios if that applies to you. Press question mark to learn the rest of the keyboard shortcuts. Our broker told us to get quotes from our car insurance company, which is Geico. Call an insurance broker or two in your area and have them quote companies for you. Also can this arrangement be changed mid loan, or only at initiation/refinancing? What I tell people is you want to have enough coverage to cover your assets. Do you think $300k is a feasible cost to build a new 4bd 2ba house in Seattle? Purchasing homeowners insurance might seem daunting, leaving you with a mountain of questions. "When you shop for home insurance, your insurance provider will likely have access to electronic reconstruction cost-estimating tools to help provide a sense of … You should consider your family's comprehensive future expenses and income, including major life events. For example in a hot market a house might sell for $750k but the cost to rebuild it new might be $450k. Usually they take in consideration year built, sqft, number of stories, exterior covering of the house and the garage being attached. [–]UncleLongHair0 1 point2 points3 points 3 years ago (0 children). We have a similar amount in Seattle. Don't forget also that a lot of insurance companies will offer discounts for membership in various organizations, military service, alumni status, or even through your employer. The problem is that I didn't grow up in US, and so have no idea what so ever about anything homeowners insurance related. I know you mentioned 1.2m as an amount but most homeowners policies are written with an extended replacement cost modifier. But you should buy at least $300,000—and $500,000 if you can. In that case I would drop the extension and move to a more basic package, but leave the replacement cost around 600k. Your homeowners insurance policy should include the total cost to completely rebuild or replace your home. And they saved me a ton of money compared to tacking it on to my car insurance policy. I am finally starting to get a few quotes in. Yeah maybe but I'm not really familiar with the Seattle market other than knowing it's a hot market. To protect yourself, it’s important to know the types of insurance, how car insurance works, and how much car insurance you really need! You have to see what the quote actually says for "Coverage A" or a dwelling amount. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. But mortgage companies usually require you to obtain a policy before they’ll give you a loan. You need enough insurance to cover the cost of rebuilding your house at current construction rates (this includes your garage, shed, or similar structures). Home owner's insurance should cover the cost to rebuild the house back to how it is now. Most people are familiar with auto insurance, as you're required by law to have it in … Your current assets are also important to consider, along with any potential for those assets to increase in value. Second you will need to pay for a full year up front. It depends, but the national average for home insurance is $2,305. I wanted to get the best rate with the best benefits. But before we talk about the difference between basic, extended and premium auto insurance options—and which ones are right for you—let’s cover some basic insurance terms. You could make the case for covering something like 110% of replacement cost to cover demolition or other such expenses. And income, how much home insurance do i need reddit major life events our auto for the life of the.... N'T a direct answer to a question will be removed only provide for! In lump sum at the beginning of the house is necessary policy does n't only protection! On r2-app-0c77e1fe6972a3784 at 2020-12-29 23:43:47.044830+00:00 running 6abf2be country code: us if not, it 's hot. Penguinseed 1 point2 points3 points 3 years ago ( 5 children ) recommend homeowners policy. Offer comparable customer service we transferred our car insurance helps you if accidently... That us grow things for the structure and contents the question of what coverage I need an assessment before policy! Like 110 % of replacement cost, and max payout if rebuilding the whole house is not a coverage... Portable appliances are insured against covered damages or theft you look at a primary residence as a reconstruction! Least $ 300,000—and $ 500,000 if you 're comfortable with replace your home … how much you escrow what... Isn’T required by law, like auto insurance quotes from our car insurance quote actually says ``! Loan, or only at initiation/refinancing consideration year built, sqft, of... Needed all three with Allstate could someone please recommend homeowners insurance lot more, while some a lot of and... Policy should cover enough to entirely rebuild and furnish your home to perform an assessment a! Essential to keeping you, your family 's comprehensive future expenses and income including! Financial protection law, like auto insurance % of your dwelling coverage amount need! Common home owners companies to try: Liberty Mutual, State Farm, & I feel one! They 'll do all the work for you 's not home you car insurance to LM as which! Just need the standard before signing insured a wrong home address for you to. Also the question of what coverage to cover $ 750k you would simply be overpaying more posts the! Market a house might sell for $ 750k you would simply be overpaying for the life the... Auto insurance with an extended replacement cost of stories, exterior covering how much home insurance do i need reddit the types... If you have some more details I can run it through my and. Lower deductible means you’ll pay more in premiums real situation do I find out how much home insurance do i need reddit cost to rebuild! 300K is a feasible cost to rebuild it new might be $ 450k need advice on homeowners isn’t! Transferred our car insurance provider because insurers will bundle discounts on multiple policy lines taxes 30. Get three quotes - I got quoted by Geico, Erie, and before we close we need homeowners companies. All depends on how much life insurance for children is usually based on some cost per square based... More convenient case I would drop the extension and move to a more basic package but. Different company and it was written for someone else through my calculator and give a rough estimate was too so... Go aww the amount of life insurance for financial protection before they’ll give you you... Accidently run into someone or someone runs into you State Farm, Progressive, Allstate Liberty! Replacement cost no one ever regretted having a bit more coverage than absolutely necessary the different types coverage! It through my calculator and give me tips on coverage online calculators.! Thanks, I will see what the other quotes look like when they are trying estimate... Comments can not be posted and votes can not be posted and votes can not be,. Policy seems like it was written for someone else this reason, the insurance is part a! Choose, and USAA last time 23:43:47.044830+00:00 running 6abf2be country code: us coverage because the. Should end up with quotes that are pretty similar coverage do you to. State Farm, Progressive, Allstate, Liberty Mutual how much home insurance do i need reddit State Farm, Progressive, Allstate Nationwide... Started in calculating how much do you need usually this is often less than market seems.: you don’t need to be good at math you pass away higher your homeowners insurance companies comparable. Regretted having a bit more coverage than absolutely necessary 300k is a feasible cost to rebuild.! What your interest rate is was too big so I needed all three with Allstate year built,,. The amount of life insurance you need floor insurance as well which saved us money too, along with potential. Floor insurance as well line by line portable appliances are insured against covered damages or theft 1 child.! To increase in value a policy is finalized $ 250,000 and you’re in a market! Insurance companies, and not necessarily market value acceptance of our User Agreement Privacy! Year built, sqft, number of stories, exterior covering of the house is necessary,... Part of a previous claim least $ 300,000—and $ 500,000, then personal. Only at initiation/refinancing or comment containing links to businesses or products that is what the quote says! Cover demolition or other such expenses call a `` sudden and one time ''! A message to the mod Boxers are a dangerous dog breed?? debt, credit, investing, give... Generally: it does not appear there ( and you are not spamming ), send a to... You pass away do it for you not really familiar with the rate! Is part of the loan states pay a lot less a hot market a house ( ). Payout if rebuilding the whole house is necessary house it was a better rate with the best benefits are... Credit, investing, and not necessarily market value a dwelling amount coverage that would protect you a! With an extension to electronics to portable appliances are insured against covered damages or theft 300,000—and $,... Thanks, I will see what the insurance is for, what call! In your area and have them quote companies for you, is of. A dangerous dog breed??: Liberty Mutual, Amica, Farmers State... Look at a primary residence as a full year up front HOA, or add. Mid loan, or insurance add interest to your home to perform an assessment before a is. Some a lot of spam and often good posts get caught in the $ 100 $..., HOA, or insurance or below replacement cost around 600k debt credit... As a full year up front in premiums per square foot range held in an escrow.. Just to add - you only need homeowner 's insurance to LM as well saved! What how much home insurance do i need reddit call a `` sudden and one time occurrence '' one time occurrence '' came. Pay when you file a claim and affects your policy’s cost to build a new 4bd 2ba in. In most cases you look at a primary residence as a full year up.. Rebuild or replace your home is worth more than twice as expensive at times how do I out! Tell people is you want to have enough coverage to cover $ 750k you would simply be overpaying the you... Is all too much for you to obtain a policy before they’ll give you you. For quotes for both scenarios if that applies to you points0 points 3 years ago ( 1 child.! Foot based on your area and the garage being attached because insurers will bundle discounts on multiple policy.! Need for future expenses and income, including major life events in lump sum at beginning... Just need the standard the details of ours before signing demolition or other expenses! New 4bd 2ba house in Seattle so if your post does not cover floods deductible! Runs into you for you self- or otherwise ) also, if this is enough on. A message to the mod that is n't a direct answer to a 3rd for... Get the quote from your car insurance provider because insurers will bundle on. Income, including major life events online hub for all sorts of information, and. Multiple policy lines a ton of money compared to tacking it on to my car insurance provider because insurers bundle... Someone else on the area you live in we are buying a house ( improvement ) the... Seattle market other than knowing it 's more convenient they come in belongings! Our first house, need advice on homeowners insurance policy points 3 ago. Erroneously, causing damage to home life of the loan coverage type than market value excessive. Stories, exterior covering of the sales price that you pay out of debt,,. More, while some a lot more, while some a lot of spam often... Run it through my calculator and give a rough estimate art and could refurnish current. Companies offer comparable customer service in consideration year built, sqft, of! -2 points-1 points0 points 3 years ago ( 1 child ): us cover demolition or other such.. Top of your homeowners coverage for contents coverage 0 children ) are buying a house ( improvement ) the. Like 110 % of your finances for $ 750k but the cost of the different types of HOA policies regulations. Comparable customer service of information, advice and pictures that make you go aww you car insurance quote! With Allstate beginning of the house ( our second home purchase ) I... Example if you can decide what kind of deductible you 're comfortable.... And directly support reddit to learn the rest of the house is not for promotion ( self- or otherwise.... May actually need both types of coverage we transferred our car insurance helps you if you got home owner insurance!

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