I have a insurance question...

Ok I have Hagerty on my car,, agreed value of 12,500,,, It gets totaled I get that amount.
Easy..............

I have my house Insured for 135k... I have had it that way ,and paid the premium on that much for 5 years... I only owe 51k,,, but with the value of houses dropin my house is valued at 115k now... Now how does this work out for me if my house burns down...
Do I get the 135 I have been payin for? The 115 Im payin taxes on? Or the 51 I owe??
I really hate to ask the insurance company itself that.....

My homeowners is for replacement value not value of the house (lot has value even if house is destroyed somehow). Look at your policy it should have the info. Also ask you agent, they can tell you. My agents are nice people and have helped way more than hinder when it comes to insurance.

Will depend on your State laws. BUT, you won't "gain" from your house being destroyed. They will rebuild (up to the value of your insurance) and "IF" they run short, you'll make up the difference. That's why most states, if not all, require they 'replace' the house. Unless the slab, foundation and all the 'hookups' and land it sits on is destroyed, you'll be fine. Again, if your house is burned to the ground and it was worth less than when you bought it, you won't get the difference. You'll get the house rebuilt.

Now, put the matches down. :D

My home owner's policy has a clause that increases the insured dollar value of the policy each year as the value of the house increases. I'm guessing that your agent could set yours up the same way if you talk to him.

NO I dont have the matches in my hand!!!!!

The reason Im worried is that my wife had a microwave SERIOUS melt down,,
she burned it up , along with the 2 cupboards and contents on the wall above it..
My brother in law was there and almost couldnt put it out with the extinguisher..

WARNING: do not actually turn the micro wave on for 20 min without anything in it azz a cookie timer,, that plate inside it that goes around in circles will actually cook and turn to liquid glass catching the micro wave on fire -while yer wife is in the basementn scrapbooking.... fyi the cookies ended up burnt also.. And so was I when I got home!!

And the last time I asked an Insurance agent something they raised my auto insurance $235,, ,, thats why I have Hagerty now instead o state farm on my chevelle..

Now if the house woulda went up and I wanted to rebuild somewere else how would that work??

Why are you afraid to talk to your agent? Time for discussions about your policy is before you have a problem. JWA I am really surprised that you have a full replacement policy unless it is tied to a realistic annual review for the premium values. I have a realistic set limit on my house policy, with riders to increase the values for personal property in the garage and secondary tool equipment shed. If your policy value is 135K (structure only land cost is not included) you will get what it costs up to that amount to replace the home. If it costs less the insurance company just has to pay out less, you don't get the difference. If you have mortgage insurance that will just pay off the loan balance if you are disabled or die, depending on how the policy is written. Talk to your agent and make sure you have what you need and understand what you do not have.

My home owner's policy has a clause that increases the insured dollar value of the policy each year as the value of the house increases. I'm guessing that your agent could set yours up the same way if you talk to him.

I think if you read your policy the insurance amount increases as the replacement cost increases, not as the value of your home increases. They are two different things. Housing prices have dropped considerably but the cost to rebuild it if it were completely destroyed has not dropped as much. Two basically identical homes in different areas may have totally different market values but replacement cost would be pretty much the same.

I think if you read your policy the insurance amount increases as the replacement cost increases, not as the value of your home increases. They are two different things. Housing prices have dropped considerably but the cost to rebuild it if it were completely destroyed has not dropped as much. .

House prices here have not dropped at all. Our part of the country never inflated houses beyond what they were worth so they haven't had to "correct" the prices. We have had slow and sensible increases all along so we don't have to worry about a price crash now.

House prices here have not dropped at all. Our part of the country never inflated houses beyond what they were worth so they haven't had to "correct" the prices. We have had slow and sensible increases all along so we don't have to worry about a price crash now.

Lucky you. Nice to be in a stable real estate market. Anyway what I said still applies. You typically insure your house for replacement cost, what it cost to rebuild it and replace the belongings, not what the market value of the house is. Maybe they do it a little a different where you are. My house is insured for replacement cost, which is a lot less than the market value of the house. If it burned to the ground I would still own the 1 1/4 acres it's on. The land and where it is located are a big portion of a homes value.

Declining or rising market the cost of materials and labor typically still go up every year so my insurance is adjusted each year to reflect that.