qbwebb wrote:Its really frustrating when the insurance company justifies the rate hike by an increase in the "Replacement Cost" to rebuild your home. I just went through an appraisal last year for a refinance and guess what, the spread between the appraised value and "replacement cost" is about 50k, but yet as a consumer I don't have the option to insure my home for the appraised value.
The real question is who is screwing me more, the bank by appraising low so they know I will come up with enough $ to have 20% equity in the house and avoid PMI or the insurance company by their artificially high "replacement cost."
There's the rub right there in the "replacement cost" BS. Mine is up $800
this year due to re-evaluation. The house is 228yrs old and they could never even replace the shiplap siding on it since there isn't that much clear cedar left in the state of Maine! It's just another game the insurence industry plays that you cannot win. I asked why can't I buy the amount of insurence that I want? My home is paid for in full and there is no bank to use as an excuse. Sorry Sir, it doesn't work that way!
It's market manipulation at it's finest. They should be proud.