- Joined
- Dec 5, 2007
- Messages
- 2,880
Hi Everyone,
I recently found out that the insurance cost is mainly a function of the size of the property. For example, a 2,000sq/ft property will cost up to 33% less to insure than a 3,000sq/ft property(!)
In addition the insurance company will ask you to provide an estimate of the size of the property and quote you based on that estimate. The reason is many times the actual size of the property is unknown.
Of course the coverage will be different as well - if you insure your property based on 2,000sq/ft they may cover "only" $500,000 to re-build it in case of fire, etc. and if you say 3,000 sq/ft they might pay $750,000.
To summarize, if you know the exact size you can provide it but if you don`t then don`t worry about under-estimating it by mistake. If you do you will simply be covering a smaller property in your policy. You get what you pay for.
Cheers!
Neil
I recently found out that the insurance cost is mainly a function of the size of the property. For example, a 2,000sq/ft property will cost up to 33% less to insure than a 3,000sq/ft property(!)
In addition the insurance company will ask you to provide an estimate of the size of the property and quote you based on that estimate. The reason is many times the actual size of the property is unknown.
Of course the coverage will be different as well - if you insure your property based on 2,000sq/ft they may cover "only" $500,000 to re-build it in case of fire, etc. and if you say 3,000 sq/ft they might pay $750,000.
To summarize, if you know the exact size you can provide it but if you don`t then don`t worry about under-estimating it by mistake. If you do you will simply be covering a smaller property in your policy. You get what you pay for.
Cheers!
Neil