Brownstone Insurance Prices
I know there have been several posts about this in the past, but I’m hoping to get some more recent data. We are hopefully closing on a North Slope house in the next month or so, and we’ve been getting quotes for homeowner’s insurance. The ones we have so far seem really, really high –…
I know there have been several posts about this in the past, but I’m hoping to get some more recent data. We are hopefully closing on a North Slope house in the next month or so, and we’ve been getting quotes for homeowner’s insurance. The ones we have so far seem really, really high — $8,300/year from Chartis and over $10,000 from Fireman’s Fund. The house is a legal two family (although we’re planning to use it as a one family) and has about 3,400 square feet over 4 floors. Each quote is based on a $2.1MM replacement cost for the house and includes an umbrella policy of either $3MM or $5MM. I know there’s less expensive stuff out there (e.g., Everest), but I’ve read some pretty negative reviews. I guess I thought the better policies would be in the $5,000 to $6,000 range, not $8,000 to $10,000. Any thoughts?
Call William Smoltino, he is the best.
We have a 4-story, 2-family in Park Slope, have been with Brownstone for almost 35 years, have had excellent service from Cynthia Brown at Brownstone. She’s intelligent, knowns the field, will discuss replacement cost v. market value, liability, etc. with you.
Have made one claim in 35 years — pre Everest, so I can’t speak to that. Claim was for water damage resulting from a flood. Brownstone paid promptly.
I’m curious, is it actually Everest that’s so bad — or the Brownstone Agency?
sorry, i saw Chartis but was thinking Chubb. Chubb and Fireman’s are Cadillac. Can’t comment anymore on AIG, just not up to speed since the crisis. Used to be, prob still is fine on the regulated businesses.
For $2.1 million from the high value carriers, $8-10k seems to be the going rate. After Chubb inspected a recent client of mine, they estimated replacement a little higher and his premium was in that ballpark. Is the house rich with original details? The carriers always estimate a higher replacement cost when original flooring and plaster walls are invloved. Standard homeowners policies can not accomadate such a high dwelling coverage. Have you looked at ACE & Chubb to compare? They also offer high value coverage.
I guess I’d be willing to pay for a Cadillac if I’m getting a Cadillac. I just want to make sure I’m not paying the price of a Bentley when other people are getting a Cadillac for the price of a Cadillac. I guess $8-10k is not out of the ballpark?
oh, also note that only the cadillac insurers would insure for full cost of the property (well above actual replacement cost) at 2x + the premium.
you’re pricing cadillac but want it the cost of a chevy.
have you tried liberty mutual? they might be around $5 or $6k if you can get them. we had a previous relationship so that might have affected our lower quote, but note that we didn’t get insured for full amount of purchase price or mortgage. replacement cost was lower than these, which was fine with our lender (i.e. land value is high).
also we didn’t have original detail or anything astronomically irreplaceable. i think there’s a a 5% hurricane deductible. i’d have to check the umbrella…
On the replacement value, I personally think $2.1MM is high for our place, but I’ve heard that the value insurance companies use (or insist on) in determining premiums often exceeds the purchase price of the house (effectively suggesting the land has zero value) because by agreeing to “replace” the house, the insurer is agreeing to pay for reconstruction using 19th century materials and workmanship (plaster walls, parquet floors, quarried brownstone facade), which would be incredibly expensive nowadays.