The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: HipGnosis on September 11, 2017, 10:14:08 AM
-
I am shopping for home insurance. For my residence.
The insurance companies are telling me I should buy a policy that covers the 'rebuild' cost, which is considerably more than the property is worth, and therefor the premium cost is higher.
I have no affinity to my neighborhood and wouldn't put more money into a property than it would be worth (because of the worth of the neighboring properties).
Do I need a policy (other than liability) for any more than the property is worth?
-
If you have a mortgage you need enough to satisfy the loan.
If you have own the property you need enough to satisfy YOU.
I could not find any company to insure my house in NC for less than 80% of rebuild. I, like you, would never rebuild the house in that area (I'd clear and sell the lot).
Companies are betting they will not pay for a loss so they want as much from you as they can get. IF you are willing to take the loss, you don't have to have insurance. You could just buy a liability policy to protect your other assets.