We are purchasing our first duplex and I received quotes from a couple sources for insurance. The house is approx 2100 sq ft, and purchase price is $56k. The comps in the neighborhood are similar.
This is what I received for 40% replacement:
Dwelling (Coverage A) 103,200 $883.00
Dwelling Extension 28,000 $28.00
Personal Property (Coverage B) 5,160
Business Liability (Coverage L) each occurrence $300,000
Business Liability (Coverage L) annual aggregate $600,000
Premises Medical Payments (Coverage M) each person $1,000
Policy deductible 1,000
Total Annual Premium 911.00
The 100% coverage was set at $258k, with premium of $2143. I know to bump up the deductible to $2500, but no 2100 sqft house in this city ever cost $258k (without land). So, it seems that the best path is to set the placement at 50% of full, with a $2500 deductible. I don't under stand how they calculate the $258k, that is VERY high for this area. But, I'm sure they don mind me paying higher premiums...
The insurance companies aren't worried about what something is worth, but what it will cost to rebuild.
One issue (in Texas and I believe in all states) is if you insure for 40%, lets say you have a loss of $100k (not a total loss), less your deductibe, say $2,500,,,,you think you would get $97,500,,,but that is not true, you are only insuring 40%, so you will get 40% of the $97,500.
Remember that insurance companies know that it is far more likely to have a less than complete loss,,so you can't insure for 40%, and get them to pay up to that point (did that make sense) unless you have a total loss.
Insurance laws vary from state to state (also rates vary wildly from state to state), so check with another agent in New York.
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