Home Ownership (misc.consumers.house)

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Default Homeowner's insurance: home purchase price, and, multi-home dilemma

Here is the scenario; (my insurance company won't do it, and I
wondered if this is common practice, and how I can get what I am
looking for)

Problem #1: I bought an older home (1876), in mint condition. My
purchase price was 1/4 what the insurance company indicated was the
replacement value (the purchase price was average, if not above
average, for the area). All I want to do is insure the property for
the purchase price (if it burns down/hit by a tornado/destroyed by
lightning, I would just take that money and move somewhere else). For
this discussion, let's ignore the contents, as that would be insured
separately.
My insurance company indicated that they would not issue insurance to
me for that value...
I don't see why... I will carry liability insurance, etc... Is this
just a method for insurance companies to extract more from me?
Granted, it IS unusual to only want to recoup the purchase price of
the house, but since I have options of other places to live, and I
paid cash for the house, if catastrophe struck, I would take the
insurance settlement, sell the house as-is, and just move on. (Will
they cash me out?)

Problem #2: In this scenario, there are two houses, each spouse using
one house as a primary residence (we legally each have a house as a
primary residence). Job reasons forced this situation. One house is
worth 10X the other house. I want to move the 80% of the contents of
the higher-valued house to the lower-valued house (hey, how many rooms
of stuff does a GUY need?).... The typical rule is that the contents
of a house is insured for 75% of the value of the house... So here is
the problem: the lower-valued house has stuff in it worth 2-3X the
value of that house, and the higher-valued house has almost nothing in
it.... So I am paying insurance to insure the contents of the higher-
valued house (which has almost no contents), and I am way under-
insured on the contents of the low-valued house. My insurance company
indicated I would have to get a binder to insure the contents of the
low-valued house, and would not drop my premium to have the insurance
on the low-valued house essentially dropped. So in effect, I am paying
literally TWICE to insure my personal effects.

I need insurance help ;-(

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Default Homeowner's insurance: home purchase price, and, multi-home dilemma

On Sep 27, 5:17 am, no1herenow wrote:
Here is the scenario; (my insurance company won't do it, and I
wondered if this is common practice, and how I can get what I am
looking for)

Problem #1: I bought an older home (1876), in mint condition. My
purchase price was 1/4 what the insurance company indicated was the
replacement value (the purchase price was average, if not above
average, for the area). All I want to do is insure the property for
the purchase price (if it burns down/hit by a tornado/destroyed by
lightning, I would just take that money and move somewhere else). For
this discussion, let's ignore the contents, as that would be insured
separately.
My insurance company indicated that they would not issue insurance to
me for that value...
I don't see why... I will carry liability insurance, etc... Is this
just a method for insurance companies to extract more from me?
Granted, it IS unusual to only want to recoup the purchase price of
the house, but since I have options of other places to live, and I
paid cash for the house, if catastrophe struck, I would take the
insurance settlement, sell the house as-is, and just move on. (Will
they cash me out?)

Problem #2: In this scenario, there are two houses, each spouse using
one house as a primary residence (we legally each have a house as a
primary residence). Job reasons forced this situation. One house is
worth 10X the other house. I want to move the 80% of the contents of
the higher-valued house to the lower-valued house (hey, how many rooms
of stuff does a GUY need?).... The typical rule is that the contents
of a house is insured for 75% of the value of the house... So here is
the problem: the lower-valued house has stuff in it worth 2-3X the
value of that house, and the higher-valued house has almost nothing in
it.... So I am paying insurance to insure the contents of the higher-
valued house (which has almost no contents), and I am way under-
insured on the contents of the low-valued house. My insurance company
indicated I would have to get a binder to insure the contents of the
low-valued house, and would not drop my premium to have the insurance
on the low-valued house essentially dropped. So in effect, I am paying
literally TWICE to insure my personal effects.

I need insurance help ;-(


Call an independent agent who works with many different companies.
He / she will be able to find a company that suits your needs.

JK

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