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Hey all, I have a question about home insurance... We are buying a pretty small house (~2000 sq ft) in Denver, Co for almost $600,000. Yes, I know it's ridiculous. It is what it is. I've talked to a few insurance companies and it looks like the max we can insure the structure for is around $320,000 or so, which is what they estimate the cost to rebuild is. I'm pretty worried we might be underinsured. I understand we are paying a premium for the location and the land, which can't be insured. We won't have a mortgage, so I don't need to worry about that aspect, and we'd be well covered for the cost of our belongings. I've done some reading and found some references to insuring for "market value", but talking with the insurance agents, they don't seem to think that's an option. Should I just push back on the cost to rebuild and argue that it should be a bit higher? Or is that an accurate estimate? So, though it is nice to pay less for insurance, we don't want to lose everything when our ridiculously expensive tiny house burns down 
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May 9, 2016 17:30
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| # ¿ Apr 29, 2024 21:36 |
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It is small when you have 3 kids
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May 9, 2016 17:35
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Sorry to start the house-size debate again The house is actually 1,835 sq ft. It's a 3 bedroom with 1.5 bathrooms. I think it's pretty small, especially for the price we're paying, but we wouldn't be buying it if we didn't think it would work for us. We won't have a mortgage because we are making quite a bit of profit on selling our current house, plus borrowing a lot of money from our families, plus we never spend money on anything but kids and food so have saved a lot. We tried buying with a traditional mortgage, but always lost the houses we wanted, so did an all cash purchase and got the house. We will get an appraisal done, that's a good idea! But would that necessarily reflect the cost to rebuild? Seems silly to hire a contractor to give us an estimate on rebuilding the house, but maybe we'll have to do that. Eta: Good point on the umbrella coverage. We have a lot right now, but will see about bumping it up.
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May 9, 2016 20:04
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In a home improvement dilemma here... We just bought a house and want to put in AC - for our comfort and for my wierdo pets. Every contractor we've had out has suggested also upgrading our furnace, which works fine, but is 16 years old and not high efficiency. They all give some kind of bullshit excuse as to why it needs to be done now when the AC is installed instead of when the furnace finally craps out. We can afford both, no problem, but didn't really want to rip out the functional furnace right now. Replacement furnace would be a 98% efficiency. Should we just do this now, or wait until our furnace dies? Help me out, homeowners!
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Jun 2, 2016 14:07
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