Olympus Insurance Begins Writing Homeowners Policies in Florida
Southeast News • August 13, 2007
In its application for certificate of authority filed with the Florida Office of Insurance Regulation, Orlando-based Olympus Insurance Co. disclosed $50 million in start-up capital.
The OIR issued ...
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Subject: RE: Replacement Value vs actual Risk
Posted On: November 11, 2008, 7:25 pm CST
Posted By: Doug Leavy
Comment:
I am an independent insurance agent & we specialize in homeowner's insurance.
On this, all insurance policies have co-insurance contracts which means that the house has to be valued properly & if not there will be penalties & exclusions. Even carriers like Lloyd's of London have these co-insurance clauses & most will not allow you to drop below 80 or 90% of the replacement cost of the property.
Right now as we are in downward real estate market there are times that the purchase price can be less than the replacement cost of the house. You still need to be able to rebuild into today's prices & just because someone is willing to dump a property at a low price, doesn't mean that your house will not cost more than that to rebuild. Sometimes, carriers will allow an appraisal (showing the replacement cost on the house) in lieu of the carrier's own estimator if that number is lower, but it is a carrier by carrier basis.
If you would like me to look at your specific quote, & run some other numbers I would be happy to do so.
Doug Leavy
Strategic Insurance
727-213-1890
info@tampabayinsurance.net
Subject: RE: Replacement Value vs actual Risk
On this, all insurance policies have co-insurance contracts which means that the house has to be valued properly & if not there will be penalties & exclusions. Even carriers like Lloyd's of London have these co-insurance clauses & most will not allow you to drop below 80 or 90% of the replacement cost of the property.
Right now as we are in downward real estate market there are times that the purchase price can be less than the replacement cost of the house. You still need to be able to rebuild into today's prices & just because someone is willing to dump a property at a low price, doesn't mean that your house will not cost more than that to rebuild. Sometimes, carriers will allow an appraisal (showing the replacement cost on the house) in lieu of the carrier's own estimator if that number is lower, but it is a carrier by carrier basis.
If you would like me to look at your specific quote, & run some other numbers I would be happy to do so.
Doug Leavy
Strategic Insurance
727-213-1890
info@tampabayinsurance.net