Hazard Insurance

[FlyingTexan1]

Originally Posted by predatorprey

You're missing the point.

You are not insuring current value of home you are insuring the cost to rebuild. For example, the home might be worth 50k and land worth 250k for a total of 300k.

it will cost a hell of a lot more to rebuild that 1200 square foot home (your numbers). I'd say it costs about 100/sq foot to build and it goes up from there depending on finishes.

Another point, your mortgage will most likely not allow you to insure less than what you're borrowing. Example you're borrowing 250k, most likely the lender will require 250k worth of hazard insurance.

That was my point. So 1240sq foot would mean a $200k policy would be very adequate

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[ilikepizza]

Originally Posted by FlyingTexan1

That was my point. So 1240sq foot would mean a $200k policy would be very adequate

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There's no telling until you talk to an agent. I bought a home in Fl that's 1994 sq ft and rebuild cost is $250K. I also bought a home in TX that's 2384 sq ft and rebuild cost is $200K

Another point is that the cost of insurance usually increases every year.

[predatorprey]

Originally Posted by FlyingTexan1

That was my point. So 1240sq foot would mean a $200k policy would be very adequate

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Ah Maybe I misunderstood you.

Either way only way to know how much it costs is to shop around multiple companies and compare coverage.

Flood is always separate and highly recommended if not required.

[piyf]

Originally Posted by FlyingTexan1

I don't have that yet but the insured amount should be for the cost to build a 1240 sq foot shouldn't it? It's not gold plated so I was just figuring $120ish per sq foot.

I give up. Good luck