Over Inflated Replacement Cost Estimates

[Insursync]

I've battled with my carriers for years on this. I'm convinced they are doing it on purpose to increase premiums. How is it that the RCE from carrier A is $1.5mill and carrier B is $2.4mill after inspection. Prior to 2020, I had a client that built his property for $900k and we insured the new construction home and RCE came back at $1.8mill.

 

[Allen Trent]

I've battled with my carriers for years on this. I'm convinced they are doing it on purpose to increase premiums. How is it that the RCE from carrier A is $1.5mill and carrier B is $2.4mill after inspection. Prior to 2020, I had a client that built his property for $900k and we insured the new construction home and RCE came back at $1.8mill.

I am guessing carriers got burned a lot with both Guaranteed Replacement Cost & Extended Replacement cost paying out way, way more than insured amount in total losses.

I know several agents that were sued when Extended Replacement cost wasnt even close to enough at time of total loss with builders charging maximum costs greater than they were charging for new construction they were building on other projects. Tends to happen when 3rd parties are paying