How much should my insurance be?

Hi all I am renewing my 3 year policy for my house insurance and I am wondering what the price per square foot for a rebuild should be. I am worried I am underinsured. Any advice gratefully received. Thanks

brooklynbemused

in About Brooklyn 9 years and 7 months ago

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stucohen | 9 years and 7 months ago

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We’ve seen a number of situations, as described above, where homes are insured for only a fraction of the actual replacement costs. Hopefully, you’ll never have a catastrophic claim, but it’s always good to prepare. Depending on the neighborhood, condition of the house, and quality of materials, the construction costs can vary anywhere from a minimum of $170 per square foot up to the $400-per-square-foot range. A qualified contractor can help you estimate the cost of rebuilding, as can many software programs.

peaceout | 9 years and 7 months ago

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Our 3 year homeowners is $5900, which for our house is approx $320 sq.ft. Don’t ever skimp on your homeowners. Hope for the best/prepare for the worse. We use Brownstone, have used them for years. They know the brownstone communities.

thetinkerswagon | 9 years and 7 months ago

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ok, went I went through this in my little queens home I felt that they estimated the rebuild cost a little low and I told them I have a good bit of real wood and I would expect that back if something happen. they (Met Life) told me that their estimate was guaranteed even if they were off. I have spoken to others and I pay a tad more for my insurance but I have to say, I am confident in them and have stayed with them for years now. Steve

brooklynbemused | 9 years and 7 months ago

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Thank you so much. That’s very helpful.

dorkofwindsor | 9 years and 7 months ago

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Normally i would say $250-350/sf for a typical 3000 square foot brownstone, but the issue can compounded by “original detail”. If you lived in brooklyn heights (or north slope etc etc) and have plaster moldings, mahogany wordwork, very ornate staircases, and other details that are very expensive to replace today (if they can be replaced at all), you may have some pushback on the insured value to get what was lost (if that is what you are seeking). If you have a brownstone that has been gutted and has drywall, wood or modern production wood or composite moldings and staircases (you get the idea) then you’d be looking at $250-300/sf depending on how high end of finished you have. In other words, it is not unusual for someone to purchase a house today for $2-3 million and only be insured for $1 million (perhaps even less). In my neighborhood, empty lots are around $1 mil, and a new mid-level house could be built for $1 mil. And the going rate for a house is $2+ mil, so the math (mostly) works out around me. Hope that helps. edit: if you were insured years ago it might be worthwhile to inquire if the cost of construction has increased since then. During / after the financial crisis it was much cheaper than during the bubble, but i have not kept track of it lately. You could always ask them to re-assess in their model which has the most current costs.