wrote in message
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On Tue, 11 Nov 2003 06:24:35 GMT, "Chia Pet" Chia
wrote:

Ok, the thing that worries me is this. I insure for replacement value.
The
insurance company says " replacement value is the cost to buy a similar
property - market value - the price you paid, perhaps with an inflation
adjustment. Certainly not the price of those other more expensive
properties
which, based on what you paid, your property surely isn't."

You can buy $1 million insurance on a $100k property. If it burns, you
just
get $100k.

Actually, you can't.


So how to assure convergence between reality and insurance adjustors?


Everything you said above is incorrect. You can insure the house for
replacement
cost. That means if it burns down, they build you a similar house on the
same
piece of dirt. Not replacement "value" to buy a different house on a
different
piece of dirt - THE COST TO REPLACE BY REBUILDING. Home insurance is not
the
same as car insurance. You need to do a little homework. My insurance not
only
covers the actual replacement cost, but additionally provides the same
amount
for "loss of use" protection. That pays my rent and other expenses during
the
time my house is unavailable to live in.

BB

Ok, thanks. I'll look into it.