After reviewing our latest renewal it seem our replacement value's have gotten out of line and our insurance company doesn't seem to want to do anything about it. The built-in 3-4% inflation rate increase really adds up after several years of compounding! I sent a list to our broker of what I thought needed to be adjusted and it was months before they got a response and then the insurer just kind of moved the values around and the premium came out the same...go figure.
I want to be fully insured and am not looking to save penny's here - it's just frustrating to have similar properties with replacement costs that are hundreds of thousands apart.
Anyway, is this a fight worth having or am I just wasting my time?
Replacement cost is often a different number with different companies. Using construction estimating programs the company is attempting to figure out the cost to rebuild with the same kind and quality. Hopefully you are with an independent agent that represents multiple companies. If so, have them check the replacement cost with other companies. That may produce different results. If you are with a captive agent (they only represent one carrier) its probably time to shop with some other agents. If you do find a company that is willing to do a lower "Replacement cost" (not actual cash value) see if they have an endorsement that provides additional coverage (usually 25% or 50%) above the limit if the replacement cost exceeds whats estimated on the policy. That way, if the new company is using inaccurate estimates of the rebuilding cost, you have some additional coverage.
Hey @Bryan L. 2-4% inflation increases are pretty standard. The buildings can be the same sq ft. but have different year build dates, zip code rates, construction type, basement vs slab and other minor differences that all change the rates of the premium. So it is possible for two very similar homes with each around the same sq. ft. to have different rates. If you cannot get anywhere with your current agent then maybe shopping around on them will get them to move quicker for you. Who knows you may even find better rates or more consistent rates at least.
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