Keller WIlliams Luxury Logo
Home » Home Owners Insurance Goes Up While Your Home Value Goes Down

Home Owners Insurance Goes Up While Your Home Value Goes Down

by | Jun 16, 2009 | Buying | 0 comments

Homebuyers may be surprised to find that homeowners insurance isn’t going down, despite precipitous declines in sale prices.

“There has been a lot of noise lately around market values, but market value and the cost to rebuild are two totally different things,” says Elaine Baisden, vice president of national property for property casualty insurer Travelers.

Marshall & Swift, which calculates building costs, says it can cost as much as 30 percent more to rebuild than to build. Reconstruction costs are greater because of demolition and removal expenses and the price of bringing older structures up to current codes.

While mortgage companies require borrowers to carry 100 percent coverage at time of closing, it is unnecessary to continue this coverage because the value of the land isn’t at risk. Typically, the building lot accounts for 25 percent of a home’s value.

Source: United Feature Syndicate, Lew Sichelman

Recent Posts

Three Reasons Not to Hire Me

Three Reasons Not to Hire Me

Seems like a strange title, doesn’t it? I’ve been studying consumers and more specifically real estate consumers for almost 20 years. Over that time, I think I really have been able to dial in on what consumers want and what consumers need. I also think that’s been a...

read more
December Featured Restaurant & Activity

December Featured Restaurant & Activity

Featured Activity: Dive with the Mantas Dive enthusiasts and those who love ocean adventures can’t say enough about the opportunity in Kona to swim with the Manta Rays. Getting in the water after dark is adventurous enough, but to view and be close to these gentle,...

read more
Featured Restaurant & Activity for November

Featured Restaurant & Activity for November

Featured Activity - Walking tour of Kailua-KonaKailua Pier, every Wednesday at 9:30am History buffs will want to take this walking tour of Kailua-Kona and learn about the many historical places in this seaside village. The tours are led by Pelena Keeling, a lifelong...

read more
“What Am I Paying For?”

“What Am I Paying For?”

These days, with all the discussions about commissions in the news, the new real estate rules, etc. every consumer is asking themselves the same question, which is, “what am I paying for?” I think it’s an excellent question and a question every real estate agent...

read more
September Market Sales Statistics

September Market Sales Statistics

Real Estate sales in the Resorts continued to be sluggish in September, the one bright spot being six condominium sales at Mauna Lani Resort. Otherwise, there were just two home sales – one each in Kohanaiki and Kūki`o. Other sales - condominiums - were limited to...

read more

Recent Listings

Call Now