Forum
« Historical price data Finding Old House Plans »
May 25, 2005
Homeowner's Insurance
Hi:
I'm researching the finer points of homeowner's insurance. Do renovators find stiffer rates or fewer vendors than they expected? Has anyone bought riders for flood damage, sewer backup or code compliance? Where can a brownstone buyer go for thorough, honest and minimally lively advice on an airtight insurance package?
Comments
This is a very complicated issue. There are basically two schools of thought on the this: Either go for cheap (which is not really cheap) or treat your home like the gold mine it is and go for comprehensive.
The premium policies are offered by Chubb, Firemans, and AIG Private Client Group. The cheaper policies are offered by the likes of State Farm, Allstate, etc. Also, Brownstone Group (an agency) offers reasonably priced policies from AIG (not the private client group).
The premium providers will actually send an appraiser to your home, and will base the policy on the appraised replacement value. Beware, they will have the ability to adjust that figure for inflation from time to time.
The not-so-premium providers will simply give you a policy for whatever amount you say you need - it's up to you to determine replacement cost. These not-so-premium policies are not designed to replace antiques, original details, etc. - they will rebuild your house but it might not look the same. The premium policies expect to rebuild your home to the same original materials and standards - but these policies can cost twice as much.
Having a centrally monitered burglar/fire alarm system is not only a good idea, it will substantially lower your insurance costs.
Posted by: Sloper at May 25, 2005 3:31 PM
I was told my my insurance company (Allstate) that flood insurance is unavailable for NYC residences at any price. (This after they refused to cover flood damage from a neighbor's burst water pipe.) Would be very interested to learn if this is untrue.
Posted by: euskaria at May 26, 2005 12:11 PM
I have allstate, and they said that anyone can buy flood insurance from the US gov't. For most of brooklyn, it's a waste of money. On the other hand, a burst pipe is not covered by flood insurance. Flood means natural made flood. I think what the allstate guy meant to say is that their policy doesn't cover damage from a burst water main, which is true. You are supposed to go sue the city. I don't know if their competitors have the same policy here.
Posted by: Anonymous at May 27, 2005 9:05 PM
Post a comment
Please be patient while your comment is published. It may take a moment.