HO3 Without the Bells and Whistles

[rokosz]

Anybody know of an insurer that will insure an SFD (in NY) for an amount (less than replacment) that I request? I don't need personal belongings coverage, or sewer backup etc. Just a simple, if, in the case of total structural loss, the insurer pays x dollars
My current insurer won't and a few others (Alls,SW, Adir.) won't either.

thanks.

 

[Guest]

Anybody know of an insurer that will insure an SFD (in NY) for an amount (less than replacment) that I request? I don't need personal belongings coverage, or sewer backup etc. Just a simple, if, in the case of total structural loss, the insurer pays x dollars
My current insurer won't and a few others (Alls,SW, Adir.) won't either.

thanks.

Why are you trying to sell such a crap policy? If no one offers it, than that should tell you something.

 

[djs]

Your client will likely end up with a co-insurance problem. Then you will likely end up with an E&O claim. All of this to save what? $50 a year????

Many companies offer dwelling only, no extras. Well, can't speak for New York, they have some strange rules, but in most states These are frequently more expensive than a true homeowners policy, since there is a reason people buy them.

Question is, what is it you are really trying to accomplish? At some point, you have to ask yourself if you are really doing the right thing!!!!!

Dan


P.S. No company in their right mind will offer a policy under 80% replacement value, with most not offering under 100%. Its a lawsuit waiting to happen.

 

[rokosz]

thanks for the replies all,

I am the homeowner not an agent. I'm not risk averse and just want enough dwelling coverage to satisfy the mortgage company (up to the amount of their interest in the property (which is far less than "replacment")).

"Dwelling only" sounds good from another perspective of mine: the sfd is a 2nd home with (essentially) garage sale furnishings.

The "full replacement" coverage is currently at 519K w/ personal prop cvge at 65K. Even if I include the boiler, K appliances, h20 heaters as personal property I've got a hard time exceeding $15K for PP expenses (including labor). I've requested PP covg on the renewal of $10K. Its in the system, the agent told me underwriting might not like it and kick it out.

It strikes me that as a consumer, ill-advised or not, there _should_ be someone out there who can write a policy for X$ coverage on a dwelling. If it gets blown away by a tornado --X$ is the payment to the HO. I keep on thinking of all the bizarre things Lloyds of L would (still does?) insure. Do they have an office in the US?

 

[Guest]

thanks for the replies all,

I am the homeowner not an agent. I'm not risk averse and just want enough dwelling coverage to satisfy the mortgage company (up to the amount of their interest in the property (which is far less than "replacment")).

"Dwelling only" sounds good from another perspective of mine: the sfd is a 2nd home with (essentially) garage sale furnishings.

The "full replacement" coverage is currently at 519K w/ personal prop cvge at 65K. Even if I include the boiler, K appliances, h20 heaters as personal property I've got a hard time exceeding $15K for PP expenses (including labor). I've requested PP covg on the renewal of $10K. Its in the system, the agent told me underwriting might not like it and kick it out.

It strikes me that as a consumer, ill-advised or not, there _should_ be someone out there who can write a policy for X$ coverage on a dwelling. If it gets blown away by a tornado --X$ is the payment to the HO. I keep on thinking of all the bizarre things Lloyds of L would (still does?) insure. Do they have an office in the US?

Call an Insurance Company and ask them to design a one time policy JUST FOR YOU!

 

[Guest]

The insurance company is collecting a premium based upon frequent and severe losses. Since total losses rarely happen and small losses occurr more frequently the insurance company would have to charge a higher premim to insure a dwelling at less than the replacement cost.

Check with your lender. Generally, lenders are prepared to insure dwellings due to the failure of the owner to provide proof of insurance. It is highly likely if the lender obtained the insurance and insured the dwelling for the loan amount the cost would be substantially higher than if you obtained a policy in the amount of the dwelling's replacement cost.

Find a carrier that will offer various deductibles that may meet your desire for risk tolerance.

 

[Guest]

The insurance company is collecting a premium based upon frequent and severe losses. Since total losses rarely happen and small losses occurr more frequently the insurance company would have to charge a higher premim to insure a dwelling at less than the replacement cost.

Check with your lender. Generally, lenders are prepared to insure dwellings due to the failure of the owner to provide proof of insurance. It is highly likely if the lender obtained the insurance and insured the dwelling for the loan amount the cost would be substantially higher than if you obtained a policy in the amount of the dwelling's replacement cost.

Find a carrier that will offer various deductibles that may meet your desire for risk tolerance.

Dont need anymore Cowbell........

a lender policy will be triple the cost of a normal policy....

 

[plins]

How about a basic ACV DP1?

 

[jhuang]

How about a basic ACV DP1?

Most lender conditions require "replacement cost" policy.

 

[Insurance1guru]

Insurers by law have to insure the home for at least 80% of the replacement value on a replacement policy. Some will allow the Personal property limit to be reduced but it usually does not lower the rate by that much. You could go with higher deductibles as that will make a sizable reduction in the price.

You could also look at at a Fire policy which is a dwelling policy only but the lender may not allow a high deductible or Fire policy. I recommend you calling a couple of independent brokers because they should have access to all this discussed here. Good luck