Question on Homeowner's Insurance

[Lost_in_the_HTTP]

I've had HO Insurance on and off over the years for different places. I've had a couple of things like hail damage and lightning strikes that could be repaired easily.

But if you have a total loss to where the home can't be repaired and has to be replaced, how does the demolition work? Does that come out of the rebuild costs, or is it a separate coverage payout?

 

[spacejamz]

I've had HO Insurance on and off over the years for different places. I've had a couple of things like hail damage and lightning strikes that could be repaired easily.

But if you have a total loss to where the home can't be repaired and has to be replaced, how does the demolition work? Does that come out of the rebuild costs, or is it a separate coverage payout?

It woud best if you called your agent to verify exactly what your specific policy covers...there is a big difference between a replacement cost policy versus one that pays a cash value, especially if the house has to be replaced...

 

[BoomerD]

I think that would depend on your policy...and even state law. Your policy may have an "additional coverage" section to cover debris removal...or not.

 

[MtnMan]

We've recently moved to a private house and getting insurance seems to be a wise decision. What companies can you recommend? Any good real experience?

Nationwide treated me good.
Tree fell on house, minor structural damage, many holes in roof.
They arranged for emergency tree removal, which included tarping the damaged area. (that is the business to go into, a crew of 4, 3 hours, couple sheets of plywood, and a tarp. $5K.)

Within 10 days an adjuster came, spent over an hour on the roof with his tablet. He was mum, but withing a couple of days the adjuster called to tell me they would replace the entire roof, even though the existing was probably 30 years old. I was given the option of using one of their 'preferred' contractors, or get my own. I chose my own, negotiated getting a few other things fixed, and new gutters all the way around. The check from the insurance company covered it.

Then when complete, they asked for pictures of the work, which I emailed to them (this was the middle of COVID shutdown), and I got another check for about 15% of the total repair cost for "recovered depreciation".

 

[BoomerD]

We've recently moved to a private house and getting insurance seems to be a wise decision. What companies can you recommend? Any good real experience?

As compared to a public house?

 

[GodisanAtheist]

As compared to a public house?

- Twas in an Outhouse previously. Worse still it was a Public Outhouse.

 

[JimKiler]

I talked to my American Family Agent and she said for my situation they do not cover the replacement cost of a house, only the value of our house so if out house is valued at 200K we get that even if it costs 300K to rebuild the same house today. I would be surprised if the removal of the old house is covered but maybe it is since leaving a structurally unsound house would be a liability for the insurance company.

 

[deadlyapp]

I am going to try Amazon Home Warranty, as we are not very happy with the current one

Home warranty is not home insurance
Home warranty almost never pays off. For 500-600 / yr you can easily save the money and use it to service major appliances when needed.

 

[JimKiler]

Home warranty is not home insurance
Home warranty almost never pays off. For 500-600 / yr you can easily save the money and use it to service major appliances when needed.

My sister in law keeps touting the local utility company's home service plus monthly fee and they repair or replace your appliances. I keep telling her i would rather decide i want a new appliance and the ability to buy it anywhere instead of waiting for a repairman to assess it before even knowing if it is a repair or replace scenario. My dishwasher leaked and destroyed my cabinet wall. I could have fixed it with a $35 part but i chose to replace it for a new Bosch dishwasher with a built in tub.

 

[deadlyapp]

My sister in law keeps touting the local utility company's home service plus monthly fee and they repair or replace your appliances. I keep telling her i would rather decide i want a new appliance and the ability to buy it anywhere instead of waiting for a repairman to assess it before even knowing if it is a repair or replace scenario. My dishwasher leaked and destroyed my cabinet wall. I could have fixed it with a $35 part but i chose to replace it for a new Bosch dishwasher with a built in tub.

Other issue with home warranty is that there is almost always a service/deductible so if you have multiple call outs you can easily burn 100-150 on an appliance to get it repaired when you can get a used or new replacement for not a whole lot less. Unless you have super finnicky extremely expensive appliances, it seems like a questionable benefit

 

[nakedfrog]

When I had my house on the market a few years ago, one of the things the realtor included in their package was a home warranty for the time the home was listed. Burner went out on my stove, I figured hey, this is the perfect opportunity to use that warranty! I had to pay $75 for a service fee for someone to come out and look at it, they were like "um, I'm not sure if I can get the part" (old stove from the 80s), and disappeared. After much haranguing, the warranty company sent out a different service company (on their dime), basically the same story. All told I was out $75 and got fuck all besides the hassle of dealing with the warranty company and the service companies.

 

[Red Squirrel]

I would imagine it includes a good chunk of the cost to rebuild it the same it was before, so if that means demolition then I imagine that would be covered. But you'd have to ask to be sure.

The issue though is inflation. If you paid 200k for your house it might cost more than 200k to build it the same now, so I'm not sure if you need to pay anything over that. Typically insurance won't cover everything 100% either so no matter what it will still cost you a lot in the end. My parents went through a house fire that required lot of work and lot of stuff was out of pocket. It adds up.

 

[RLGL]

Ask your insurance agent!