Check your policy to make sure you have replacement cost coverage on your contents. Otherwise -if you have a loss, you will only get the depreciated value.(That may be why your coverage is so low in cost)
Why all this talk about electrical and water supply. The insurer is not going to have to pay for the house.
Yep, I didn't even think to mention that!! He's probably got the old HO2 dwelling fire policy - it's what companies I've written for issue on houses built prior to 1940 and not updated completely.
Thanks for the reply. You always have to ask questions to make sure you get what you want. A standard policy gives you depreciated value. I have a home business and without additional coverage, they will not cover any equipment used for work. I do have replacement value coverage. That is IF I can prove what we have/had. That is one of the reasons the wife and I took an inventory. Otherwise I bet a person could be nickled and dimed to bankruptcy try to replace a household worth of goods. Silly rabbit, tricks are for hookers.
Thanks for the concern. The house has updated wiring ( read copper and grounded, + GFCI where needed) instead of the aluminum crap. They stopped short of replacing the main panel probably due to the cost ( 1k plus ) and the fact they shut off your power until the job is done and inspected which would be a real pain. We never have never blown a breaker due to excessive demand. I hired an electrician ( and a structural engineer ) to check the house before we signed for it. We are building a new garage ( yeah ) with its own connection and meter. When that is done a nice 200 amp panel will be installed downstairs.
So tell me, what is that all about? Not that I think an ins. company would look out for me ( gag choke )
There are different kinds of homeowner's policies - HO3 is the typical policy, which covers all risks. The older from - HO2 is still issued however, for houses that are older and don't have updated electrical, heating, plumbing systems. There's a lot to it - some I probably don't know. HO2 covers specific, stated risks, and does not come with replacement value. Sometimes a company has their own "form" approved - it will still fall into these two categories, but does not have HO3 or HO2 written on the policy. If you have replacement value on the house not just the contents, then you have HO3. Replacement value on the house means that they will build the new house with the exact same materials and features as the house you lost (in whatever caused the claim - like a fire). With older homes, they often have to specify an "equivalent house" on today's market, because the same materials and workmanship are no longer available or in use. Another thing to consider with a home as old as yours - if they have this law in your state - is additional coverage (an endorsement) that says the ins company will also give you additional items that are now required by changes in the buidling code. Now, you might think that would be included in the words "replacement cost" but it isn't. Many states and localities have changed their building codes frequently, so it is important coverage if your company offers it in your state.
This thread has gotten off track. It started out about renters insurance so how and why has the subject switched to homeowners insurance?
I do not think that a discussion of ANY kind of insurance is "going off on a tangent" on this board. After job loss,the biggest cause of credit problems and bankruptcy are uninsured losses. From inadequate health,auto and life insurance to the wrong kind of, or no coverage for renters or homowner's the lack of insurance can destroy everything in your good credit.
I personally paid less for RENTERS INSURANCE because of the FACT I was NOT paying for the "STRUCTURE"...
That is the way it SHOULD be. However, I have also been looking at ins. for rental properties so I just need to insure the property. On a house valued what mine is, the premium is only 8% cheaper than insuring property and contents.
======================== Using the ignore feature is just plain dumb: Ignore short for IGNORANT Ya Know!
Re: RENTERS Insurance Question - BRZ?? breeze | 5458 posts since Feb 2001 205.252.74.25 | 05.30.2002 @ 00:56 Ohh - somebody doesn't like what we're talking about? Try the ignore feature. I love it. <giggle> Breeze _____________________________ I'd rather be at the beach ====================== How would you know if you're on Ignor ance ?
How will my garage having it's own meter jack up my electric bill? As it is residential and on the same property, I only have to pay the base service fees for one meter which are about $42/mth. Then I have to pay consumption for both meters. In some locations you have to pay the base charge for each meter however, where I live, they don't gouge you like that.
This is what i was talking about. Your total electric cost will still be more than it was because consumption will increase. Also you have to watch if you are paying a step rate based the amount of usage.
