Landlord Insurance by sq. ft. or by appraised value

[Carl Graff]

I am in the process of obtaining landlord insurance for 2 properties:

1. 2300 sq. ft. home with 3 car garage and in-ground pool worth ~ 560K

2. 504 sq. ft. condo in La La Jolla worth ~ 285K 

I am getting suggestions on coverage by property value but I think it should be square feet because the condo is worth about 285K and 5 miles away would be worth half that. I will call construction companies but I think they quote by square foot.

I am amazed at the lack of information available for average cost per square foot to rebuild condo just interior and house everything.

Best ballpark I can get is $75 - $125 / ft for condo and $200 - $250 /ft for house.

Also insurance agencies I have dealt with tend to jack up the personal property limits for example $20K personal property for a 1 br 1ba 504 sq. ft. condo - give me a break.

Here is what I will go with unless someone has better recommendation:

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Condo 504 sq ft HOA covers all external :

504 * $100 ~ $50K Property + $6K Personal (appliances mainly)

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House 2300 * $225 ~ $518K Property + $10K Personal (appliances mainly)

Also what if it cost less than the insured amount does the insurer get to keep the extra?

Any feedback appreciated.  

Carl

[Mike McCarthy]

Insurance companies have formulas for calculating replacement value based on a handful of simple variables. Square footage, numbers of bed/bath, construction types, etc.

It gets them a replacement value with mostly public data and possibly a brief inspection. It gets them close enough for them to feel comfortable insuring your property.

Why don't you give an agent a call and get an estimated replacement value and cost?