"jim" wrote in message ...
Chia Pet wrote:

I've been watching real estate around me with absolute astonishment.
After
being evicted from our apartment last December because the landlord sold
the
house, we bought a home for $51k and insured it for $75. We did alot of
work
on it to make it nice. But regardless of that, real estate prices have
gone
crazy and we couldn't replace our home with less than $100-125k now,
less
than a year later.

The other night I had a nightmare that my house burnt down and, even
after
hopefully convincing the insurance company we deserve $75k, we had $75k
and
were hopelessly unable to buy a home.

The good news is I woke up and the house is fine and near a fire hydrant
and
fire house. The bad news is that really is my insurance situation. The
purchase price is the insurance company's weapon against a higher claim
(the
purchase price was abnormally low even then). But replacement even with
a
$25k increase would definitely be impossible now.

Is there a way out of this nightmare???
Yes, insure it for full value, that way you covered if the dream comes
true.....

But the issue is precicely full value. How to prove it without selling my
home?

Consider the prior owner had the tax assessment so high that after I bought
it the taxes were cut in half even though the average property value (and
tax) went up 15% in the city after reassessment.

Actual price cut my taxes from the fictitious assessment of the city. Actual
trumps some fictional assessment.

So, I have this huge adjustment in my taxes whuich is money from heaven,
based on actual selling price. But, then, what about insurance??? There is
my nightmare. Actual is very potent.