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November 29, 2007
How much to pay for homeowner's insurance?
I am considering purchasing a Brownstone in BKLYN and wanted to get some thoughts on homeowner's insurance. I've spoken to a few agents, but my head is spinning. Specifically, I'd love some thoughts from the community on:
- How much should an annual premium cost for good coverage (I've gotten quotes that range wildly, from $3k to $13k) - the home costs $2.5mm, btw.
- What should home dwelling replacement be? If the house were to be wiped out, how much coverage should I get to rebuild it?
- Any agents that anyone on the board would recommend?
Thanks in advance!
Comments
My homeowner's insurance through Liberty Mutual on a 2.3 million house is $4,080, up from $3,569 last year, with 1 million replacement value. I got quotes from Chubb and someone else (can't remember now) but they were 25-50% higher. We haven't had any claims, so I can't say anything about that.
Posted by: guest at November 29, 2007 11:01 AM
I switched to Liberty Mutual last year. Based on on recommendations on this forum I contacted Ryan Fortier (212 391-7500), an agent for Liberty Mutual, and upped my coverage from somewhere in the $500k's to $875k, with full replacement coverage on the contents for a premium of $1.9k or so per year.
The value you should insure the building for in the event of total loss should probably represent the current-day construction cost of a building of the same size and of good quality. I don't think it's feasible to insure it to the extent that you can rebuild all the period details. These days you're probably talking about something in the region of $350/SF. So, if you have a 25' x 50' four story house, it works out to $1.75 million. That would put a value on the land of $750,000 ($2.5 million less $1.75 million), or $150 per built SF of your assumed 5,000 SF home, which is about in the right ballpark.
Posted by: johnife at November 29, 2007 11:21 AM
call or go to geico online, they do a great job and have the best rates.
Posted by: guest at November 29, 2007 3:32 PM
Geico doesn't do Brooklyn
I think poster #1's quotes sound right. Don't know where you got a quote of $13,000 but I think adequate coverage ($1M-$1.5M) even with a top-price outfit like Chubb will run you no more than $5K-$6K.
Keep in mind if you're getting a mortgage than many lenders will require you to get a policy with coverage at least equal to the mortgage amount. This is to satisfy their underwriting requirements but you have wiggle room in future years to drop to a lower amount without lender catching on.
Posted by: guest at November 29, 2007 3:49 PM
My homeowners insurance for my co-op (valued at 300k) with coverage up to $1 mil is roughly $300/yr.
My renters insurance for a co-op (value 225k) is only $200/yr.
Properties are in the Bronx and Queens, respectively.
State Farm is the insurer.
Posted by: guest at November 29, 2007 5:09 PM
Some good comments already. We just bought in August and had trouble finding anyone to provide coverage. In the end we had a choice of AIG / CHUBB and firemans fund. Ultimately we went with AIG as they had the same coverage for a cheaper price.
Its a good point in terms of having to cover the mortgage amount, alas that one cost us. Our house is @1.4m and full replacement costs runs a premium of 4k per year.
Check out Bollinger insurance. They provided quotes on AIG and Chubb.
Posted by: 10thStreetReno at November 29, 2007 7:07 PM
i have a 3-family in harlem that's insured for 720k that i occupy one unit in. it costs me 2100 a year. it's through state farm and i have a 5k deductible.
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Posted by: guest at November 30, 2007 11:54 AM
The guidelines ourlined in the first two posts are sound.
We live in a 20x40 brick row house. Chubb provided me with some outrageous quotes (11-13K/yr) when our old policy expired and we were shopping for new. In the end, we stuck with Brownstone/AIG with came in at $11K for 3 years.
I have never made a claim with them.
Posted by: guest at November 30, 2007 1:24 PM
Give Brian O'kane at State Farm (718.429.7781) a call, he'll lay out the best possibilities for you.
We got a policy that's about 300/month for about 1 mil in replacement. Never had a claim (knock wood).
Posted by: hbranty at December 1, 2007 2:40 PM
Actually someone on another thread said Chubb would pay to recreate all the period details, even if it cost more than the stated am't. See here.
Posted by: guest at May 9, 2008 12:41 AM
Oops, link didn't work:
http://www.brownstoner.com/forum/archives/2008/04/insurance_recs.php
Posted by: guest at May 9, 2008 12:44 AM
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