Hey all,
I imagined this had been asked before, but I haven't had any luck finding any threads specific to this topic.
My wife and I are in the process of closing on a home, and I am shopping for home owners insurance. The biggest factor in the rate is the home's replacement cost, and I am having troubles finding any information about how to accurately determine this.
The home in question was built in 1999 and the original owner paid ~$125,000. We are buying it for $127,000, and it appraised for $128,000. On the appraisal, they say the replacement cost is $131,000, but $35,000 of that is for the land. Would you get insured for the full $131,000? Or $96,000 (total value minus land value)? Or would you want to pad this?
Thanks for the help!