We were just on the phone with our insurance company and discovered that they had many of the property characteristics wrong on a house that we own. The result is that we will likely need to pay a few extra hundred dollars per month due to the errors they had in their system.
My question is, what is a reasonable rebuild cost for a single family row home in Philadelphia with mid-grade finishes? The square footage is 2,565 but it is a pretty standard 3 story brick row home from the 1930's with an attached wall on one side and an alley on the other. I don't want to be under-insured, but their initial estimate was $750k to rebuild which seems extremely high to me, since that shouldn't include the land value.
We have another property in NJ, about an hour away that is about 500sqft smaller, but with additional exterior decks and a pitched roof with a rebuild cost estimated closer to $350K.
Any help or suggestions would be greatly appreciated!
We had the same issue with insurance company. I think they know all about the property, just using that excuse to increase the premium.
@Maureen Campbell curious which insurer you used. For my single family row homes, I use Liberty Mutual (there's not many companies that insure the flat roof homes). In any event, it depends what materials construct the home. If the entire home is brick (front, back, sides) they will take that into account. For example, my 2 story (1000 sq ft) SFH (row home) in a C+ neighborhood.. insurance is $850/annual (home value of $150K) because it's a brick front and back home. To compare: I had a duplex, 2,000 sq ft of living space, corner property, 2 car garage, basement. Exterior was cinder block which then had stucco. That cost $1200/year (overall value of $500K)
Both homes were fully rehabed with new electric, plumbing, roof, windows, wired smokes.. trying to get the best discounts. And those were the rates i paid!
Insurance agent told me it's based on the material and laying brick (to replace like with like) is expense. I would advise you get a 2nd quote though as well. Finally, bundling multiple services (house, umbrella, your cars) with the same carrier will definitely save you money via multi policy discounts.
I don't know what insurer you're using, but for my personal residence which is in northern NJ and about 2250 sq. ft home I'm paying $1100 a year and that's including a $1million dollar umbrella policy and auto insurance for one year with huge limits on 1 car. I use Amica because Consumer Reports rated in it #1 for home insurance in terms of client service and lowest number of claim denials.
Thanks for the replies. We were already paying roughly $1100 annually for the home with incorrect information. We have USAA and have had great experiences with them for many years, but this rate increase (if my husband had the numbers correct) would triple that. We do have a brick home, but the façade is the only exterior brick. The back and side wall are stucco.
We are going to have an insurance inspector come out to see if they still come up with the same number, but if the rate jumps a couple hundred dollars we will definitely look at switching insurers. We were looking for a company to do our umbrella policy through as well, so I appreciate the recommendations @Philip Ing and @Mike B.
@Maureen Campbell i use liberty mutual company. I have an agent/Direct contact who is great to work with, I've been with him a few years now. PM me if you want his contact info. Thanks
Join the Largest Real Estate Investing Community
Basic membership is free, forever.