DDI Insurance Agency

24522 Harper Avenue

St Clair Shores, MI 48080

(313) 925-3216

[email protected]​

My Blog


A Homeowners Quote in the Mail

Posted on September 5, 2013 at 8:21 AM
A Quote in the Mail
Many of us (I did!) have received homeowners quotes in the mail that look "to good to be true".
If that quote is based on the Market Value or Purchase Price of your home, the better expression would be "Buyer Beware".
Why do you need to purchase Replacement Cost or Reconstruction Cost on your dwelling?
Let's take a look and see.
Rebuilding Is Different Than Buying
The cost to buy a home is different than the cost to rebuild. So you can’t rely on your home’s market value to set your insurance limits. An appropriate amount of insurance coverage will permit you to rebuild your home in the event of a loss. That replacement value depends on the physical characteristics of your home, as well as the price of labor and materials in your area.
It also includes the cost to remove the damage property or the repair the damaged portion to it's original state when you have a partial loss. Demolition, debris removal, code compliance and other fees also add to reconstruction expense.
Time is also a factor in reconstruction as you would like to get back into your home as soon as possible.
This is substantially higher than new construction, and since market values change with the economy, the are you live in, school choices and many other factors, this amount will not be accurate.
I'm just concerned with paying off my mortgage.
A policy based on your mortgage only works for a total loss, and sometimes not even then.
You see if you policy is a "market value", and "actual cash value" or a "repair cost policy", a partial loss will be depreciated and only a portion will be paid.
My policy Reads Replacement Cost
There is a co-insurance clause in your policy, generally 80%. This means that you (the insured) have agreed that the amount your insuring for is at least, 80%, of the cost to rebuild.
If this is not true at the time of a claim, a co-insurance penalty is applied to the loss. This penalty acts like a deductible in the fact that YOU are responsible for that portion.
So there are many things to consider when you and your agent determine the amount of insurance you need for your home. For many of us, this is our largest investment, and our family home, we want to protect it properly.
Make sure your conversations with your agent are informative,
and don't fall for the "quote in the mail" .

Categories: actual cash value, homeowners insurance, How much coverage do I need for my home, how much insurance do I need, insurance, Market Value, Repair Cost, replacement cost, Why do I need so much insurance, Why is my homeowners premium so high

Post a Comment


Oops, you forgot something.


The words you entered did not match the given text. Please try again.


Reply Barbara Noseda
2:10 PM on June 11, 2014 
Very cool website. It seems to have everything you might need. love you.
Reply live
10:45 PM on July 25, 2014 
Diese ernst Dollar Boni Sportwetten und Casino Online-Casino ist kann sein a ausgezeichneter Ort zu besitzen unterhaltsam und Erwerb Dur . live wetten Die Gleichung Begehren und bieten wurde das Prinzip fuehren zu Unternehmen jedem Markt .
Reply online sport
10:38 PM on August 12, 2014 
Aber was passiert, kommt, wenn sie wann immer sie zaehlen und auch the Erloes. Das ist sie set der regelmaessig die Bedeutung von Steh von ein World Wide Web -Sportwetten ist der Schluessel die des Einrichtung.
Reply Sportwetten Tipps
3:16 PM on August 13, 2014 
Auch Temperatur Situationen moeglicherweise Einfluss Vermutung.Ironischerweise Logik wird Ihnen sagen, die die Chancen von a Serie fortDoppelZimmer mit jeweils jedes einzelne zusaetzliche Woche und auch muessen Wette zu gegen sie.
Reply www
5:33 PM on November 25, 2017 
Great site!
Reply top 5
5:34 PM on November 25, 2017 
Great job!
Reply review
5:35 PM on November 25, 2017 
Great article!
Reply www
5:36 PM on November 25, 2017 
Great site!
Reply top
5:36 PM on November 25, 2017 
Great job!
Reply pills
11:02 AM on December 12, 2017 
Great content!
Reply vigrx
11:06 AM on December 12, 2017 
Great site!
Reply www
11:11 AM on December 12, 2017 
Great writing!
Reply pills
11:16 AM on December 12, 2017 
Awesome site!
Reply top 5
11:20 AM on December 12, 2017 
Great article1
Reply top 5 pumps
9:36 AM on March 7, 2018 
Awesome content!
Reply pumps
9:47 AM on March 7, 2018 
Great article!
Reply top 5
9:56 AM on March 7, 2018 
Great job!
Reply reviews
10:05 AM on March 7, 2018 
Great site!
Reply pump top 5
10:23 AM on March 7, 2018 
Great job!
Reply top 6 pills
3:31 PM on March 16, 2018 
Great site!