Only want to purchase a $60000 policy

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

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...

Full Bio →

Written by

UPDATED: Mar 29, 2012

Advertiser Disclosure

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 Carthagena, OH

Asked on 03/29/2012

Only want to purchase a $60000 policy my home was built in the 40s as a fishing cabin its 900 sq ft. I only want to buy a policy for about $60000 because if anything happens to it it would be replaced with a mobil home not a cabin Every place i have priced tells me how much i would have to purchase, most well over $100000 Why cant i decide how much I want not what the industry wants?

Answer given on March 29, 2012

Insurance companies are not willing to allow their clients to underinsure a property because the cost of the insurance does not properly cover the risk to the company.If you insure the home for 1/2 of its value, and only a portion is damaged in a fire or claim, the insurance company may have to pay out the full value of the policy even though it is a partial loss. This works against the insurance company as to its right to collect a fair premium for an insured risk.There are some insurance companies that will allow you to insure a property for a lesser amount, but they usually will depreciate any loss rather than paying a replacement cost figure. Most of these companies are specialty companies and are few and far between. You should talk to your agent about such insurance. If you do not have an agent, find an independent agent who may have access to such an insurance company.You may also check into a higher deductible and insure the property for its full replacement cost value. The increased deductible may help offset any addiitonal costs you incur for having to purchase more insurance.


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.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption