06-15-2009, 03:11 AM
Aloha:
We are in the process of purchasing a home in Nanwale Estates. The home was a foreclosure. It does need some work (like with most foreclosures). We are scheduled to close by end of July - so have been searching for Insurance quotes.
The loan balance once we close will be about 50,000 after our down etc. What I am being told is we have to insure for replacement value. So far have 2 quotes one was for over 2,000 and this paricular company said we HAVE to have our belingings covered and also loss of ues etc. They listed our belingings at 88,000 (we don't have any belongings in it nor will we EVER have 88,000 worth.
The next company was lower at $1,200 per year and we didn't have to have our belongings covered. But they also stated even when we pay our mortgage off - they still will make us cover for full replacement value. Whats with that? I have never heard of insurance where you can not specify how much you would like your home insured for if you own it. I mean if we want to insure for only 100K or less that should be up to us and not be told how much they want us to insure for.
Does anyone know of any other options we may have - like I said the balance of the loan will only be about 50,000 or less by the time we close. We are currently getting the house appraised (and I am sure it will not appraise for much since it is a fixer upper). What is the deal with having to take out way more insurance then what the house is worth? I mean if it burnt down and we only had 100K of insurance on it. It surely would be more then enough to pay off the 50,000 loan on the property. I mean 50,000 is like purchasing a mid luxury vehicle - and your not required to have insurance valued at over 150,000 on it.
Any advice or another insurance agency we might be able to go with?
Mahalo,
Laurie
We are in the process of purchasing a home in Nanwale Estates. The home was a foreclosure. It does need some work (like with most foreclosures). We are scheduled to close by end of July - so have been searching for Insurance quotes.
The loan balance once we close will be about 50,000 after our down etc. What I am being told is we have to insure for replacement value. So far have 2 quotes one was for over 2,000 and this paricular company said we HAVE to have our belingings covered and also loss of ues etc. They listed our belingings at 88,000 (we don't have any belongings in it nor will we EVER have 88,000 worth.
The next company was lower at $1,200 per year and we didn't have to have our belongings covered. But they also stated even when we pay our mortgage off - they still will make us cover for full replacement value. Whats with that? I have never heard of insurance where you can not specify how much you would like your home insured for if you own it. I mean if we want to insure for only 100K or less that should be up to us and not be told how much they want us to insure for.
Does anyone know of any other options we may have - like I said the balance of the loan will only be about 50,000 or less by the time we close. We are currently getting the house appraised (and I am sure it will not appraise for much since it is a fixer upper). What is the deal with having to take out way more insurance then what the house is worth? I mean if it burnt down and we only had 100K of insurance on it. It surely would be more then enough to pay off the 50,000 loan on the property. I mean 50,000 is like purchasing a mid luxury vehicle - and your not required to have insurance valued at over 150,000 on it.
Any advice or another insurance agency we might be able to go with?
Mahalo,
Laurie