Watch Those Home Owner's Insurance Policies

Here is some practical advice from "Richard R" about the amount of insurance you may be holding on your home. Richard writes ...

Mish

We just got our homeowners insurance policy from a company who took government money and voila, presto, the value of our house went up! Our plain-Jane ranch home has under 2400 sq ft, vinyl siding, asphalt shingle, gravel driveway and 2 car garage with no outbuildings or hot tubs. It was valued at $697,000 replacement cost without the land.

By questioning and reviewing the house it was reduced by their own formulas to $492,000 replacement cost. This is probably high but not crazy for Southern Connecticut.

Difference in policy premium is almost 25%!

I can't imagine what the difference might be in Las Vegas where 4000 sq ft homes that sold for 1.3mm now routinely go for $395k...

Have a great weekend.

Regards,

Rich

Thanks Rich!

Please check your policies and make sure you are not overpaying!

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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