insurance assessment vs. MVA

[housedoc]

Here`s my situation.
City `valuation` for taxation purposes ~$485,000.
Insurance `valuation` (replacement cost?) $635,000 (+$63,500 for detached garage) = ~$700,000.

So....
city valuation = lower taxes
insurance valuation = higher premium

Is the insurance company inflating the value in order to charge me a higher premium?
Could I use the MVA # to try to get a better deal on my insurance policy, or is it `good` to have a higher assessed insurance value and just enjoy the lower property tax?

How would the property be valued if it is mortgage free and I wanted to borrow against it to invest in RE?
Are existing `valuations` considered or would the bank/lender do an independent `appraisal`? What is it based on?

 

[Nir]

I think the SIZE OF THE PROPERTY (that you provided your insurance company) has most effect on the insurance valuation and as a result your premium.
Are you surprised some insurance companies inflate the value in order to charge you more? Of course they do!!! ...Unfortunately.

I swear I know someone who believes Insurance Companies control the World! who can fight them!?

 

[RobAllan]

QUOTE (housedoc @ Feb 1 2009, 09:02 AM) Here`s my situation.
City `valuation` for taxation purposes ~$485,000.
Insurance `valuation` (replacement cost?) $635,000 (+$63,500 for detached garage) = ~$700,000.

So....
city valuation = lower taxes
insurance valuation = higher premium

Is the insurance company inflating the value in order to charge me a higher premium?
Could I use the MVA # to try to get a better deal on my insurance policy, or is it `good` to have a higher assessed insurance value and just enjoy the lower property tax?

How would the property be valued if it is mortgage free and I wanted to borrow against it to invest in RE?
Are existing `valuations` considered or would the bank/lender do an independent `appraisal`? What is it based on?