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Home Ownership Made Easy
579 hits
| Feb 16, 2005 2:47 am |
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re: Insurance Costs |
Michael Keong
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Jensen ,
Probably you have been misinformed.When a property(house) is being insured, it is insured on the replacement cost of the house and not on the land.The land cannot be destroyed.
Similarly , land can only appreciate in value but a house is depreciated over time.
Maybe in CA because it is in the San Andreas Fault, properties are subjected to be destroyed including land assuming that the land the house sits on a hilly slope could be flattened in the event of a major earthquake.
Otherwise, I think it is wrong for an agent to quote you on the whole property (including land).
Hope this helps.
Michael.
> Jensen Wong wrote:
> Hi everyone.
>
>I'm pretty new to Ryze, and I don't know if this topic has been covered yet. Probably has, but what the heck. Dealing with homeowners insurance is not that hard, but the thing to remember when you get quotes is to get enough insurance to rebuilt the house. Most agents will insurance the entire value of the home, which is crazy in CA because of real estate values. A 1/2 million dollar home can realistically be insured for about $200,000 because that's about what it would cost to rebuilt it if something happened to the house. When you talk about affordability, this is one place where you can help cut down the costs.
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>Any comments
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>Jensen Wong
>Farmers Insurance
>California
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>
>P.S. For those of you in CA, especially the Bay Area, feel free to contact me to talk more.
>1-408-394-5030 
Private Reply to Michael Keong (new win) |
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