I am not understanding this whole "replacement Costs" regarding insuring older houses. I have called around to 5 different agencies and they keep giving me outrageous quotes for house I am to buy. Does anyone have any suggestions as to how I can get a lower quote? The house is only 35,000 and I am getting replacment costs for up to 200,000!!!!!! Which is giving me very high payments a month.
My lender said I need to have a year paid upfront also is this common?

Any suggestions??

Thank You!

Market value does not equal replacement cost. Cost does not equal value. Some insurance companies offer a 'market value' or 'agreed value' policy, you just have to call around. You are also required to pay the policy in FULL the first year.

j

Can be a complicated question. Short n simple is: You want to insure your home for what it would cost to rebuild with similar construction. For more info see my post How Much Homeowners Insurance Do You REALLY Need? at http://dennis-insurance.blogspot.com/2008/02/how-much-homeowners-insurance-do-you.html

Very interesting responses. Not in a million years would I have guessed the replacement costs to be that high. I guess that's why it's good to bounce around until you hit a desirable quote.