Reasonable Insurance quote

9 Replies

I'm actually speaking with Justin this week. We messaged yesterday, and from what multiple people have told me now, I'm feeling hopeful he'll come in with the winning quote.

 Some of the other quotes I've seen were literally $3000- $7100. 

Greetings. It's difficult to say why you think these quotes are unreasonable without providing the coverage and the cost.
Are they unreasonable because they don't insure what is needed for the price? Are they high based on your expectations? Are they high but insure what needs to be insured but you did not realize the cost involved? What sort of policy are you compsring them with to make you think the premium is unreasonable?

Much success.

Yeah, I think $3000 may be about right. The big thing is the rebuild value the put on it. It is crazy right now. I'm purchasing a house for $265k and insurance company says it costs $756k to rebuild. 

It is likely that the Replacement Cost coverage is causing the insurance to be higher than you expect.   The Replacement Cost is the amount that the company is estimating the house would cost to rebuild from the foundation up with the same kind and quality.  Often on older houses or ones constructed of brick or stone you can find a company that will insure it for the functional Replacement Cost.  That is the cost to rebuild to the same function (wood frame construction, drywall rather than plaster, etc.).  If that does not work you can find companies that will insure for the Actual Cash Value (Replacement less depreciation).  That will often be more in lne with the purchase price.  The downside is that, in a loss, the depreciation is taken from the claim amount.  So if you have $50,000 in damage and the house has depreciated 60% you would only receive $30,000 ($50,000 x .60)).

I write a lot of rental properties in CT and have found that the best company for a property can vary based on location (fire protection differs by town and even with towns), condition of the property, and how updated the plumbing, roof, electric, heat are among other factors.  Definitely shop around and ask questions about alternatives, high deductibles, etc.

I tend to look at things differently than most. My W2 job has me talking to a lot of people normally. One of my customers works for an insurance agent. So he puts food on my table I put food on his. That being said I have always found his quotes to be reasonable and if he does not know how to respond to an idea he finds out and gets back to me. 

Remember that price is not everything. Service counts as well. That being said give my guy a call - his name is Jamie Milligan - tell him I sent you and he should take care of you. I would explain what you are looking for and what you want to budget for insurance coverage. 

Jamie Milligan (Farmers Insurance)


@Ryan Newport I feel slightly better about the policy I just signed for a 2 building 3 unit that was $1956 that they said I could rebuild both buildings for $457,000.

The agent told me $50,000 of cyber coverage was $80 more and $100,000 of cyber coverage was about $150 more. This was the first time I have been offered this or have even heard of it. For any who do not know as I didn’t it’s in case you keep tenants data on your computer or with a company like and it gets hacked and stolen and you are sued you can pay to settle with your tenants.