house insurance replacement cost

[Cement Bench]

farm house 2 story 1600 feet per floor, crawl space 4 foot instead of basement

average built 3m years old

Insurance has replacement cost for house ALONE at 825 thousand, nuts

tried to lower it and they said if we say 500 grand then it goes over so what

they also said if we lower it then 20 % damage we only get 20 % of 500 grand
seems fair but *******s to deal with

looking around now

Thoughts to solve the problem

hate to see what the house in town at 1800 sq ft bungalow finished basement is valued at for replacement cost


so what does it cost for a average house 2 story or bungalow to build nowadays

and basement per square foot with 1 bathroom no tub or shower to build from scratch average finish

[FishOutOfWater]

A 3000 sq/ft home would easily run you half a million to build (yourself as general contractor) nowadays... At least 50% more if you're just buying.

[Cement Bench]

also say the trades

materials

electrical

plumbing

bathroom
all approximate square footage cost

[KGB]

That’s a re-built cost. Including demolition of the remains of the old house, hauling it away and clearing the pad for the new build. Also includes your appliances etc.

[Big Grey Wolf]

A couple years ago cost for stick build home was around $200/sq ft. Now may be closer to $250/sq ft. Basement finish and 2nd floor costs were around 60% of main floor costs.

[FishOutOfWater]

Originally Posted by Big Grey Wolf

A couple years ago cost for stick build home was around $200/sq ft. Now may be closer to $250/sq ft. Basement finish and 2nd floor costs were around 60% of main floor costs.

And at 1600 per floor, that's $400k for the main and $240k for the 2nd floor... At $250/sq-ft.

Even at $200/square it would be $320k and $192k per floor, respectively. Just over the $500,000 mark.

And I've never heard of an insurance company providing an estimate or paying out a claim based on the appraised value divided by the percentage of damage to the residence. Only cost of repairs to structure, and replacement cost of items lost.

Possible solution - find a new insurance provider.

[eagleflyfisher]

Going through this rn, 2100 sq.ft bungalow
$850 k replacement.
They are working on approx $400 sq.ft. In todays market.

They added a bunch of special touches to my policy bringing it to $9200 year w a $1 k deductible.
Moved it to a $5 k deductible now at $7700

Asked them to remove about 1k of coverage for this and that hoping we get to $6 ish.
Had 1 small claim back in 2005.
Have 1 blip on my credit score from years ago.
They say credit is a large factor in how much you pay because people w crappy credit tend to make more claims.
I say in the past 22 years have I ever failed to pay my premiums?

[Sleddawg]

Originally Posted by Big Grey Wolf

A couple years ago cost for stick build home was around $200/sq ft. Now may be closer to $250/sq ft. Basement finish and 2nd floor costs were around 60% of main floor costs.

I built a house in 2008 and it was $156/sq ft and I was chapped as our friends at the time had built one in 2006 at $135/sq ft. Crazy how much this has gone up

[1hogfarmer]

In town or rural? This sounds like total loss coverage.

[Cement Bench]

1 house in the country 20 miles from town

and 1 in the middle of town

[Desert Eagle]

A guy at work was just pricing out builds and minimum per square foot is $400 right now…

This is both North West AB and another place he has in central AB. With any upgrades that puts you in the ~420-450 range per square, which to me is insane. When we built in 07 going price was about 180/square.

[Au revoir, Gopher]

And we are going through the exact opposite with our insurance right now. They have replacement values on our out buildings (garage, shop, storage) that we think are way low. Imagine, someone wanting to pay their insurance company more money!

But yes, shop around. We did about five years ago and saved a fair bit then.

ARG

[CanuckShooter]

Originally Posted by eagleflyfisher

Going through this rn, 2100 sq.ft bungalow
$850 k replacement.
They are working on approx $400 sq.ft. In todays market.

They added a bunch of special touches to my policy bringing it to $9200 year w a $1 k deductible.
Moved it to a $5 k deductible now at $7700

Asked them to remove about 1k of coverage for this and that hoping we get to $6 ish.
Had 1 small claim back in 2005.
Have 1 blip on my credit score from years ago.
They say credit is a large factor in how much you pay because people w crappy credit tend to make more claims.
I say in the past 22 years have I ever failed to pay my premiums?

Oh my, $7700 per year? What on earth do you live in?? We are insured at under $2500, $7-9000 is over the top in my experience.

[eagleflyfisher]

Originally Posted by CanuckShooter

Oh my, $7700 per year? What on earth do you live in?? We are insured at under $2500, $7-9000 is over the top in my experience.

Just outside Calgary

Crazy expensive yes, I don’t get it.

[CanuckShooter]

Originally Posted by eagleflyfisher

Just outside Calgary

Crazy expensive yes, I don’t get it.

A few years ago we moved outside the city limits because of city taxes etc, moved into a log house on 160..property taxes were $365 a year after the homeowner grant. I don't think that even covered plowing the roads in the winter?

You have to pay a lot of income tax to take home $9K to pay property taxes. I feel bad for you.

[Drewski Canuck]

Perhsps ask the Broker if the Policy contains a *'Co Insurance Clause* then ask what that means.

Insurance companies do not want a propertz *underinsured*. If the loss is greater than policy value, for every dollar over the insurable loss, the Insurance Company will pay you one dollar less on settlement. Think real hard if your coverage is 50 % of the total loss.

The reason rural insurance is so high is because most rural fire departments have a 100 % success rate. They have not saved one house yet!!!!

Brtween detection and response organization then travel WiTH THE WATER SUPPLY to the location it typically is too late.

If you have a mortgage there will be an IBC Mortgage Clause, but that pays the nortgage amount out first, leaving little to rebuild with.

Shop around but do not underinsure. REFUSE policies with a Co Insurance clause.

Have the Broker come out to the property and set the value - price, and make sure you take lots of pictures of each and every room and HOW THE FLOOR JOISTS are built, and send them to the Insurer.

That is what the Contractor is to rebuild to.

Drewski

[Big Lou]

We just finished building. 2 storey with a walkout basement. Finished pretty high end. 1300 sq Ft main floor and basement. 600 sq Ft upstairs. Partially covered deck that totals 600 sq Ft. We were $544/sq Ft all said and done based on a 1300 sq Ft footprint. That includes new septic and cistern. Tin roof. Spray foam. Running an arse pile of underground power etc. We skimped nowhere.

[fishtank]

Originally Posted by CanuckShooter

A few years ago we moved outside the city limits because of city taxes etc, moved into a log house on 160..property taxes were $365 a year after the homeowner grant. I don't think that even covered plowing the roads in the winter?

You have to pay a lot of income tax to take home $9K to pay property taxes. I feel bad for you.

Insurance… not property taxes that’s another bill . The replacement value/cost for the house has not been change in my policy for the pass 10 years .

[CanuckShooter]

Originally Posted by fishtank

Insurance… not property taxes that’s another bill . The replacement value/cost for the house has not been change in my policy for the pass 10 years .

Opps, brain fart. Not sure why I started babbling about taxes.
x

[CanuckShooter]

Originally Posted by Drewski Canuck

Perhsps ask the Broker if the Policy contains a *'Co Insurance Clause* then ask what that means.

Insurance companies do not want a propertz *underinsured*. If the loss is greater than policy value, for every dollar over the insurable loss, the Insurance Company will pay you one dollar less on settlement. Think real hard if your coverage is 50 % of the total loss.

The reason rural insurance is so high is because most rural fire departments have a 100 % success rate. They have not saved one house yet!!!!

Brtween detection and response organization then travel WiTH THE WATER SUPPLY to the location it typically is too late.

If you have a mortgage there will be an IBC Mortgage Clause, but that pays the nortgage amount out first, leaving little to rebuild with.

Shop around but do not underinsure. REFUSE policies with a Co Insurance clause.

Have the Broker come out to the property and set the value - price, and make sure you take lots of pictures of each and every room and HOW THE FLOOR JOISTS are built, and send them to the Insurer.

That is what the Contractor is to rebuild to.

Drewski

Rural [volunteer] firefighters are not allowed to fight a home fire until the power has been disconnected. That may have a lot to do with their success rates in saving homes.