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In article ,
says...
I could reduce the amount of the coverage, of course, and lower the
premium somewhat. But do I, a mere homeowner, really know what it
would cost to rebuild if my house was burned to the ground? Doubtful!
So like most of us poor saps, I am forced to keep the amount somewhat
larger than I think I really need -- or else get some sort of
re-appraisal every year, which I doubt anyone would do.
Actually, that's what some insurance companies now do -- instead of
storing a preset dollar amount in their computers and increasing that by
some blanket percentage every year, they're storing dozens of data points
on the home and running a new replacement cost estimate every year at
renewal. Most don't invent the formula themselves, they use Marshall &
Swift/Boekh or the like, with regional factors for labor and materials
costs. This does require the insurance company to know more about your
home, but it also allows a more accurate increase in cost for different
styles of construction. And it helps avoid E&O claims when you have a
total loss and discover your automatic increase was indadequate.
--
is Joshua Putnam
http://www.phred.org/~josh/
Books for Bicycle Mechanics and Tinkerers:
http://www.phred.org/~josh/bike/bikebooks.html
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