04-09-2012 12:15 PM
Well we are working with our 3rd lender and we have an accepted offer on a nice home. Set to close next month!!!
inspection and VA APPRAISAL this week. my question is about insurance. the house is 7 years old in a subdivision that is still building houses, floor plans start in the 170,000.00.
Our offer was right around 200,000. On the house we love. it is a large home 4000 sq Ft 4 beds 4 bathrooms. but we are checking insurance rates and they are nuts we checked 4 places that range from 400,000.00 to 600,000.00 dwelling coverage. yearly price 1600- 2200 a year. The agents keep saying it is because the house is big and that it would cost more then 400,000.00 to rebuild it if it was damaged!!! NOTHING in the house is upgraded all builder grade standard stuff. basic carpet, basic vinyl floors in kitchen and bathrooms. laminate counters, basic cabinets. Basically a blank slate for years to come for us to make it our home!
Does this seem reasonable ? Our realtor thinks it sounds ridiculous. We want to insure our home correctly not too little but certainly not over insure it. How do you know when you have the right coverage is their a formula that we can use?