Home Owners Ins - Replacement Dwelling Cost?
Our H/O and auto insurance policies are up for renewal next month, so we figured we should shop and compare two other reputable, nationwide companies to our current carrier. Our current carrier wants the replacement cost at $480k. That is up $30k from prior year. The two other companies I have received quotes from, both came up with computer generated replacement costs of $390k. Then, those two companies will pay another 20% on top of the 100% if needed. I have asked both companies to have dwelling at $425k or $450k. The one carrier is still less expensive by $700 to our current carrier, so it is really a no brainer in switching, but I am trying to understand why the replacement costs vary at two coming in at $390k and the one at $490k.
I called our current company and they didn't have any explanation except "Be careful and make sure you are fully insured".
I know the real estate market doesn't necessarily reflect the construction market, but we could only sell our house for approx. $75k more than the $480k replacement cost and that includes the land.
How do you know what "fully insured" is? Does anyone know what the construction cost per sq ft is in
the NY tri-state area? We are in lower NY state, on the NJ border.
Thanks for any advice.