Florida Coverage Amount No Mortgage

[sawgrass42]

I recently purchased a home in Gulf Breeze Fl.
Is it possible to get coverage of a lower amount than replacement amount estimate of insurance co.The home is paid for and I would like 150k ,their replacement estimate is 304k,The house is 2000sf ,block,built in 1958.
Sawgrass

 

[fearsback]

Unfortunately not. They base it on the rce soothe house can be rebuilt in case of a catastrophe. With no mortgage you can raise deductibles or even take off wind sorry to reduce the premium if you really want. Not my recommendation. Good luck.

 

[BigIVU]

If an HO-8 homeownes form is used, coverage can usually be placed on a market value or actual cash value basis. This is the valuation provision in the Loss Settlement clause of the "ISO standard" HO-8 policy:

Buildings under Coverage A or B:
a. If you repair or replace the loss to restore the building structure for the same occupancy and use at the same site within 180 days of the date of loss, we will pay the lesser of the following amounts:
(1) The limit of liability that applies to the damaged or destroyed building structure; or
(2) The necessary amount actually spent to repair or replace the loss to the building structure but no more than the cost of using common construction materials and methods where functionally equivalent to and less costly than obsolete, antique or custom construction materials and methods.
b. If you do not make claim under Paragraph a. above, we will pay the least of the following amounts:
(1) The limit of liability that applies to the damaged or destroyed building structure;
(2) The market value at the time of loss of the damaged or destroyed building structure exclusive of land value; or


(3) The amount which it would cost to repair or replace that part of the building structure damaged or destroyed with material of like kind and quality less allowance for physical deterioration and depreciation.

 

[Stevis50]

Right now the company I work for the lowest we can go is 80% ITV on a property and we only do it if you put up a fuss. We have to go through a HUGE speech about it because it changes your contract, make sure we have your rebuilt current as of today's date, and go from there. Anything less than 80% we send you away (to Citizens usually). But it's also so hard to get HO with us as it is, (location, wind hazard, sinkhole, year built) most of them go there anyway... I've heard a few will go to 60 but have yet to get a name and I hear they're non-standard.

Plus when I do go down to 80% unless you're in Miami-Dade where the rates are sky-high anyway, the premium difference is so little isn't worth the coverage loss IMO.

 

[Underwriter2Agent]

Can I ask what company you work for?

 

[Stevis50]

Yes, I work for USAA. Standard we do 100% with a 25% "Home Protector" coverage added. We can go to 95% with no contract change. Anything under 95% changes our contract. But I will still get the man that insists his home we have valued at $525k can be rebuilt for $300k max by his builder friend and he doesn't want the coverage, so we have that option...

 

[OKYINSURANCE]

You might want to check into some type of "umbrella coverage". Either look into encompass or MetLife's "Grand Protect"

 

[Underwriter2Agent]

Yes, I work for USAA. Standard we do 100% with a 25% "Home Protector" coverage added. We can go to 95% with no contract change. Anything under 95% changes our contract. But I will still get the man that insists his home we have valued at $525k can be rebuilt for $300k max by his builder friend and he doesn't want the coverage, so we have that option...

How frequently are you writing in Miami Dade?

 

[Stevis50]

Personally I have yet to accept one. Up until recently it was a no-write county, so unless it was already on the books as soon as they said it was there it was declined. Now they did away with no-write counties. But there are so many other restrictions in place unless it's an IBHS certified home I can't see it being accepted.

 

[b61mack]

No write county, is red lining!!! A very big no no!!