Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Nov 13, 2012

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Insurance Question from Belhaven, NC

Asked on 11/13/2012

I would like to insure my house for less then the replacement cost. Is there a insurance company that will let me do that. NULL

Answer given on November 15, 2012

There are very few homeowner insurance companies that will write insurance on a home for less then the full replacement cost of the home. The premiums charged are based on insuring a home for full replacement cost. If they write the insurance for less, then the premium they receive does not reflect the rating structure.If you underinsure your home, say for 50% of the replacement cost value, then if there is a loss that is only a partial loss, then the insurance company will have to pay nearly the full amount of the policy for damage that is partial. You may save money, but the insurance company loses. Also, if there is a total loss, you will not get sufficient reimbursement to rebuild your home.Insurance companies use different ways to determine replacement cost of a home. If you shop around you may find a company that will insure the home for a lower amount thus keeping your insurance costs down.


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