Insurance Amount and Land Value

Categories: Insurance

I read something in a landlording book, but I am not sure if it applies in the “real world” of Brooklyn.
House Price = 800 K
Mortgage = 700 K

The mortgage company is certainly interested in me getting enough fire insurance.
But land does not burn !
The book said if the house is worth 600K without the land, then I should only have to get 600K fire insurance.

But my mortgage company is not buying this they blindly insist on 700K .
Is this a battle I have a small chance of winning?
Should I be switching mortgage companies?

Many thanks!

By | 08/30/2006 10:03 PM