bsfarms - 11/7/2023 08:31
Boone & Crockett - 11/6/2023 22:50
T-rowe - 11/6/2023 20:30
Is it because replacement costs are so high? Seams local housing markets are insane.
the actual replacement cost has nothing to do with replacement cost insurance. I just means insurance company wii pay stated value on a total claim, not depreciate the property.
I think the point was that if a xXxX as ft home took 250k to replace a couple years ago, it now costs the insurance company $400-500k to replace. They have to charge more to cover the liability they are taking on.
Still not how replacement cost works. It’s not a function of what the increased cost to build today is, that increase is not on the insurance companies shoulders. It’s if you have 250k of coverage on your home, and ten years later have a claim, you will recieve the full 250k, not a reduced amount due to the fact the home is now 10 years old, and depreciation comes into play. I’m not a property casualty agent, hopefully there’s one that will confirm what I’m stating. Many folks don’t understand this, as the replies on this thread show.