We bought a property with an old house on it - it was neglected, but still in good shape. We caught it before it started to degrade. In true mustachian fashion, we decided to make it livable, and have been renovating it (mostly by ourselves) over the past decade. We started with a new foundation, and then moved on to new windows, chimney, insulation, siding, metal roof, etc.
Through it all, we were insured by one company that didn't require a house inspection, and although it was more expensive that other people I knew were paying, we just trudged along whilst we worked hard on renovations. (100+ yr old house, ~1750 sq ft 2-level, electric+certified wood heat, $1000/yr insurance, even with $2500 deductible).
As the renovations are basically complete, and the rate continued to rise somewhat dramatically, I decided it was time to shop around for a better rate. Our broker quickly found us one, and we switched. A house inspection was done, which raised some minor things we have to address, but nothing serious. However, the valuation of the house came back in ridiculous territory - $400k+ replacement value, $75k+ for some outbuildings, and $277k belongings. This would result in pretty much a doubling of the rate we were originally quoted ($823/yr suddenly became $1500+/yr, with a $600+ payment due within 2 weeks). Also, as part of the process we discovered that our previous agent at this brokerage had entered things incorrectly, meaning that it was possible we weren't actually properly insured all this time.
The reason given for the stupid cost is that replacement cost for an older home is more expensive due to the unique materials used back then (i.e. hemlock framing and sheathing boards, which is the only part of the original house remaining now). However, if something were to happen to this house, we'd never attempt to replace it like it is - I'd go with a different layout entirely. Also, their valuation for the outbuildings are out to lunch (I could replace them all professionally for $25k MAX), and we do not have anything remotely close to $277k worth of belongings. I'm sure $100k would more than cover replacements. It all feels like it's a classic bait and switch by the insurer to milk us for an increased premium.
So we want to cap our coverage at $250k for the house, which would allow us to build something suitable, $25k for the outbuildings, and probably $100k for belongings. However, the company flat-out refused to consider it, despite me clearly explaining how they are out to lunch and that we'll take ALL of our business elsewhere, so now we're forced to shop around.
So this has all been yet another one of those completely unnecessary stressful events that pop up when trying to spend money (something I don't recommend - most businesses seem to only be interested in sinking un-removable cash-suckers into you, rather than fairly exchanging items of value for currency). However, it's house insurance, so further attempts must be made.
Can anyone offer any advice about insurance options/insurers that might be able to accommodate me with a reasonable insurance plan? Or any other advice related? I contacted the IBC, but their response distilled down to "you'll have to shop around". We just want to be covered for liability, and to make sure that if something unfortunate were to happen, we could still afford to have a comfortable place to live. You know, basic mustachian stuff. I've never attempted to make a claim, and wouldn't unless it was something serious. I'm in Atlantic Canada, if that has an impact.
