Personal Finance

Home insurance - dwelling/building amount

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  • Nov 6th, 2014 11:30 am
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Deal Addict
Jun 30, 2003
3706 posts
12 upvotes

Home insurance - dwelling/building amount

Did not find anything on this searching the forum. I have a problem - recently changed insurance and the mortgage company (First National) is complaining the building or dwelling amount is not 50% or more of the appraised value of the house. So, yes, it is not. Most of the house value is in the land (over 75%) and not building - even says so on the appraisal. I also don't know what they are talking about. My previous insurance had an even lower building amount than the current one and they accepted that one.
I don't see anything in the signed papers stating 50% or more of appraised value of the house, but I will go through it once more. Additional the insurance company says they can't just arbitrarily raise the dwelling amount to whatever value even if I wanted to pay bigger premium (it is the estimated value to rebuild a same home in case of fire...). I've been going over the previous insurance and comparing it to the current one and I don't see any major differences. In fact most amounts are bigger in the new insurance, which makes sense considering inflation.
First National is also very unhelpful (to put it mildly) - it takes them 5 days to respond to my inquiry (on the phone they tell you to send a request to them for review). My insurance company is trying to reach out to them and resolve this, but they are also not getting response from First National.
Can anyone shine some light on this one? Or maybe what I should look at - I am not an insurance professional, after all.

Thanks a lot!
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