I would like to insure my house for less then the replacement cost. Is there a insurance company that will let me do that.
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Nov 13, 2012
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
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.
IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.