[FenneyGirl]

Originally Posted by Hape2Bhr

I am beginning the search for Homeowners Insurance. Coverage A is the costliest section, and I have received large variances between some of the proposals. We have a mortgage and I do know the mortgage provider requires at least enough coverage to cover our balance. The other variable is replacement cost due to catastrophic damage. We live in a CYV, and I would like to know what is considered the replacement cost of a 2B2B CYV. Is this information readily available?

Coverage A is determined what it will cost to replace your home , not at market value , but the actual cost to repair and or repair. If building costs have increased , that is considered. A software program actually does this. I was a homeowners claims adjuster for over 25 years. I was licensed in all states.

When you get your policy , the policy service rep will ask you for info on your home. Type of structure, features like granite vs laminate countertops. Etc.

I would suggest insure the home for replacement costs. Make sure that you insure your personal property , Coverage C, what it would cost to place your items. I had one claim where a persons home totally burned down to the ground. Their Cov C was $60,000. Their Steinway piano was valued at $75,000.

Never cheap it out on HO insurance. The RCC changes all the time. Get full coverage.

[vds2020]

Originally Posted by retiredguy123

I was referring to the amount of insurance needed to make you whole. If you receive less than market value from the insurance policy, you will lose money. I would want to receive enough money to buy another house. I wouldn't want to wait 6 months to a year for a new house to be built on the same lot. And who will pay for your housing expenses while the new house is being built? Also, I don't think you can rebuild a house for less than market value because your construction cost will be way higher than The Villages' construction cost.

Replacement cost has nothing to do with market value.

[Gatorfan1]

Originally Posted by retiredguy123

Thanks. I understand, but to make you whole, all you need is a settlement for the market value of the house, so you can purchase another comparable house. I think the market value of the house is an important factor in how much insurance you need. I wouldn't want to pay for $400K in insurance to insure a house with a market value of only $300K.

Insurance companies insure for cost to rebuild when you purchase. Inflation coverage is included which increases your coverage based on actual cost to rebuild. There is a replacement cost endorsement you can purchase. % of replacement cost depends on what company offers. 20%, 25%, etc. You do have to rebuild for the inflation endorsement to respond.

Mortgage companies in Florida under Florida law can not require
Insurance company to insure mortgage amount if it is more than actual cost to rebuild.

This is why it is important to talk to local Agents who knows Florida laws.