Alright so the past 2-3 years, (1) we've had home inflation increasing the value of homes, and (2) we've had construction cost going up.
Now, I'm renewing my insurance, and my insurer says my home is worth $50,000 more, if they have to replace and rebuild everything.
And their calculation is like $80,000 more than the value in Zillows.
The premium also goes up by 33%.
Now I say the increase is too high for 33%, because my home price did not go up that high.
So if I choose a lower amount like $30,000 lower, to save on Premium, what if real construction cost has gone up?
My question is - can I build a smaller home? Right now, I have 3,400+ sq.ft. and if say, for example, I get a very high quote from a builder, do I have to option to build a 3,000 sq.ft home instead of a 3,400 sq. ft home.
How do insurance treat this if the construction companies come up with higher estimates ?
Thanks for any feedback
Now, I'm renewing my insurance, and my insurer says my home is worth $50,000 more, if they have to replace and rebuild everything.
And their calculation is like $80,000 more than the value in Zillows.
The premium also goes up by 33%.
Now I say the increase is too high for 33%, because my home price did not go up that high.
So if I choose a lower amount like $30,000 lower, to save on Premium, what if real construction cost has gone up?
My question is - can I build a smaller home? Right now, I have 3,400+ sq.ft. and if say, for example, I get a very high quote from a builder, do I have to option to build a 3,000 sq.ft home instead of a 3,400 sq. ft home.
How do insurance treat this if the construction companies come up with higher estimates ?
Thanks for any feedback