Home owner's insurance

[Mark Stone]

Hey everyone, I just got a new quot for my homeowner's insurance on the triplex I own and in live in.

I noticed the premium jumped from $1480 to $1743, is this typical. I mean a $263 or 17% seems a little fishy to me. 

Also, the amount for the dwelling coverage is about what I paid for the place 2 years ago. Do you typically cover 80% of purchase price or something like that for the dwelling, and assume the other portion is for the land?

Thanks in advance for any advice!

[John Mocker]

Mark,

First a caution about using a different basis than Replacement cost for valuing the building.  If the limit does not reflect the cost to rebuild you will not have the funds from the proceeds to rebuild.  Further, on a partial loss having Replacement cost coverage will normally fund the full cost of the repairs on a covered loss. 

The increase in the cost of the homeowners seems high but you have to look at what increase has there been over time.  Insurance companies have to file their rates.  Often they will wait a couple years before refilling so the rate is a combination of several years increase. 

The important thing you want to find out is the competitiveness of that quote.  If that is still the best rate then you have to live with it.  If not, then you can renew with a different carrier and save.