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Increase premuium after contract

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What is the name of your state (only U.S. law)? MA

I purchased a home insurance through an agent. The house rebuild value has been estimated reasonably in the statement I received. After two months, the insurance tells me that the new inspection indicate the value of the house is 30% more than original estimated, thus it asks me to pay $420 extra annual premium.

The new estimate is absurdly higher than all comparable houses in my area. How do I defend myself for this matter? Any suggestion is appreciated.

L.M.
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? MA

I purchased a home insurance through an agent. The house rebuild value has been estimated reasonably in the statement I received. After two months, the insurance tells me that the new inspection indicate the value of the house is 30% more than original estimated, thus it asks me to pay $420 extra annual premium.

The new estimate is absurdly higher than all comparable houses in my area. How do I defend myself for this matter? Any suggestion is appreciated.

L.M.
If the house were to burn down 6 months from now do you want to get full replacement cost or would you rather be stuck getting 3/4ths of what it would cost to rebuild?
 
If the house were to burn down 6 months from now do you want to get full replacement cost or would you rather be stuck getting 3/4ths of what it would cost to rebuild?
Current estimation is already 20-30% higher than actual rebuilding cost. Several very nearby neighbors' houses were recently bought by builders to re-build new houses, so it is easy to know the land value and cost of rebuilding. Insurance new estimate is 50-60% higher than the estimations from bank hired appraisal made this year, also about 50% higher than zillow.com.

Do you have more question and you can give some suggestions?
 
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LdiJ

Senior Member
Current estimation is already 20-30% higher than actual rebuilding cost. Several very nearby neighbors' houses were recently bought by builders to re-build new houses, so it is easy to know the land value and cost of rebuilding. Insurance new estimate is 50-60% higher than the estimations from bank hired appraisal made this year, also about 50% higher than zillow.com.

Do you have more question and you can give some suggestions?
I think that you could very well be wrong about actual rebuilding cost.

All I know, with complete certainty is that many people have believed that they were adequately insured only to find out that they were not. Bank appraisals of value have zero to do with costs of rebuilding.

You are talking about 420.00. That is about 35 dollars a month. I would rather be over insured than under insured when talking about that small of an amount in monthly escrow. I have seen too many under insured people end up totally screwed when disaster happens.
 

Just Blue

Senior Member
What is the name of your state (only U.S. law)? MA

I purchased a home insurance through an agent. The house rebuild value has been estimated reasonably in the statement I received. After two months, the insurance tells me that the new inspection indicate the value of the house is 30% more than original estimated, thus it asks me to pay $420 extra annual premium.

The new estimate is absurdly higher than all comparable houses in my area. How do I defend myself for this matter? Any suggestion is appreciated.

L.M.
Hey Mike...Why don't you get insurance through a different company?

:confused:
 

Cedrus

Member
Mike: Was the first premium based on your info that you gave the insurance agent? And was the higher premium after an agent came your house for a inspection/pictures?

You seem to have a handle on construction costs in your neighborhood. So if a good number is $100 sq/ft, it sounds like you are now based on $150 sq/ft ? Is your house a better quality construction than the new ones being built in your area?
 

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