Texas>home of GW Bush, Dick Armey, Tom Delay, Phil Gramm
Check how much home-owners insurance you are buying.
I had occasion today to talk with my insurance company (USAA) regarding the upcoming renewal on my homeowners policy.
My policy I suppose has always had an automatic coverage escalation clause intended to keep the value of insurance current with, over the 30+ years I've had the policy, inflation as regarded the cost to rebuild the house in case of total loss. Most years the amount of insurance I bought on whatever house I lived in went up.
Today, it was by chance in discussing something else about my coverage that the lady at USAA made me aware that the current replacement cost to rebuild my house was $173,000. The recent policy I had received that covered the renewal information showed the Dwelling Protection to be $233,000, which is the level the cost to rebuild had risen to back at this time last year 12/09, and from $213,000 in 12/08.
So the cost of rebuilding my home has deflated from the $233,000 in 2010 to $173,000 for the one year insurance period commencing on 12/2/10. Though the premium for this coming year would have increased by about 10% had I continued to insure the house for $233,000.
The point of this post is to suggest to those who own homes that perhaps the cost of reconstructing them has diminished and thus owners may be paying for more homeowners insurance than is needed. I revised my coverage to $175K, thus reducing my previum for the coming year by $120.
Jim 69 y/o
"...Texans...the lowest form of white man there is." Robert Duvall, as Al Sieber, in "Geronimo." (see "Location" for examples.)
Dedicated to the idea that all people deserve a chance for a healthy productive life. B&M Gates Fdn.
Good judgement comes from experience; experience comes from bad judgement. Unknown.
Copyright iTulip, Inc. 1998 - 2016 - All Rights Reserved
Opinions expressed herein are those of the posters, not those of iTulip, Inc., its owners, or management. All material posted on this board becomes the intellectual property of the poster and iTulip, Inc., and may not be reposted in full on another website without the express written permission of iTulip, Inc. By exception, the original registered iTulip member who authored a post may repost his or her own material on other sites. Permission is hereby granted to repost brief excerpts of material from this forum on other websites provided that attribution and a link to the source is included with the reposted material.
Nothing on this website is intended or should be construed as investment advice. It is intended to be used for informational and entertainment purposes only. We reserve the right to make changes, including change in price, content, description, terms, etc. at any time without notice. By using this board you agree that you understand the risks of trading, and are solely responsible for your own investment and trading decisions. Read full legal disclaimer.
Journalists are not permitted to contact iTulip members through this forum's email and personal messaging services without written permission from iTulip, Inc. Requests for permission may be made via Contact Us.
Objectionable posts may be reported to the board administrators via Contact Us.