I bought a new construction home for $208,000. My dwelling coverage is at $150,000 and my broker (through work) and MetLife have told me this is sufficient since the MetLife A+ (or whatever it's called) would make up the difference no matter what the current value of the home is. Before switching to MetLife, my previous broker (who also sells MetLife along with other lines like the Safeco I had with her) questioned that, but my mortgage was approved without any problems so I guess everything is OK. She felt that the home should at least be covered for the $208K I paid. Thoughts?
MetLife Homeowner's A+ Dwelling Coverage ?
- Thread starter TwoCents
- Start date
- 15,041
You home should be covered to replacement cost. Being a new purchase, the purchase price and RC should be fairly close, but that is no guarantee. Ask the MetLife agent to see the Replacement Cost Estimator he prepared. It sounds like he is counting on extended coverage to get you there and depending upon the exact policy language, you and he could be sorely disappointed.
I am surprised that the loan was approved, typically mortgage companies complain whenever the Coverage A is less than the loan amount and have to be shown that the RCE and that the policy is written on a replacement cost basis to be satisfied.
I am surprised that the loan was approved, typically mortgage companies complain whenever the Coverage A is less than the loan amount and have to be shown that the RCE and that the policy is written on a replacement cost basis to be satisfied.
- 2,623
Replacement cost and purchase price can be close or far apart. One can be higher than the other in both directions depending on location.
Try this replacement cost estimator. It's pretty comprehensive and adjusts for location.
Building-Cost.net - Start Your Valuation
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