You want to insure my house for what?

Services for Real Estate Pros with Auto & Home & Life Insurance throughout North Carolina

There are many questions you will encounter in this life.  Is there indeed, a God?  What are the chances they actually look like their profile pic?  Can you believe what they just tweeted?  How the heck could you vote for that person?

The other question (this isn't an all encompassing post) encountered by anyone providing homeowners insurance these days is the very one that I reference in the title of this post.  

First, I'll answer it with a lame cliché ... you just don't compare apples and oranges. Ever.  

What your house is worth, or is appraised at as of today, may or may not be in alignment with what it will cost to rebulild your home.  After all, the latter is the reason you have Homeowner's Insurance for in the first place.  That and the Mortgage Company requires such.  Even still, self-insuring usually only works in the movies.

Allow me to illuminate you as to why the difference:

  •  If you own a home that is a bit older, matching labor and materials, along with custom woodwork, isn't exactly easy. Folks (artisans) that do this type of work are often harder to find and more expensive when they are found. And the purpose of your Homeowner's Insurance is to replace/rebuild the home you live in, as it exists. That last sentence will become quite popular if you read me going forward.
  •  It's one thing to value a house already built, it's quite another to take into account the cost of demolition and debris removal before actually rebuilding your house.  Homeowner's Insurance takes those costs into account.  Hence, another difference.
  •  Supply vs. Demand. Many losses come in large doses. Think Hurricane Katrina. Think neighbor Bob who felt that Moltov Cocktails were an appropriate display on the 4th of July.  Top-notch Homeowner's Insurance also takes this into account. A storm of some kind can take out an entire neighborhood. So can a fire. So can any number of things. Contractors in that area will charge more to replace those homes, because the demand is up and the supply to correct those things is more than likely down, or not what it should be compared to the normal construction market.  
  •  Speaking of contractors, and you can ask them yourself… those specializing in reconstruction and restorations often charge more for their services. While you may have a friend or family member in the construction business, rebuilding your home won't be based upon their quote alone. It can't be. The reality is that there is no guarantee that they’ll still be in business when that loss occurs. And the cost of materials is subject to drastic market changes. Much like a commodity. Not to mention the cost to truck that lumber, sheetrock, etc., to your location. It’s subject to the wild whims of the marketplace.

  And how about these:  local construction costs, amendments to building codes since the home was built, type of construction materials, style of home, fireplace(s), number of rooms, square footage, home improvements, style and type of roof, and how good looking you are.

Okay, kidding on the "good looking" part. But I do offer a number of wonderful credits! Now that you understand, I hope it is understood. While it is rarely a bad idea to revisit your Homeowner's Insurance to ensure you aren't over-insured or under-insured, at least now you'll have a good understanding of what goes into that often misunderstood calculation. And if you need help understanding it… I’m here for you. But for now…


I'll leave you with this:


Comments (52)

Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Jason, it's so fun to see you here on ActiveRain again!  Hope life is treating you well, and of course, great post.

Jun 12, 2016 12:20 AM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Jason Sardi I want to join the chorus of voices welcoming you back. How did you happen to land in Charlotte?

Bill Roberts

Jun 12, 2016 12:24 AM
Chrissi Chapman Topoleski
Coldwell Banker Realty - Woodbridge, VA
Helping agents live an exceptional life!

Thanks for such a great post, love the way it is written, too. A friend of mine recently had a house fire. All the things she needed to do to make it habitable as well as having to replace even small things made me take a look at our policy again. Information all my clients should have.

Jun 12, 2016 12:42 AM
Kat Palmiotti
406-270-3667,, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

This is good information, and yes, there is a lot that is behind those insurance coverage amounts.

Nice video to end your post with!

Jun 12, 2016 12:59 AM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH

Self insuring is for the birds!!! Thanks for sharing

What your house is worth, or is appraised at as of today, may or may not be in alignment with what it will cost to rebulild your home.  After all, the latter is the reason you have Homeowner's Insurance for in the first place.  That and the Mortgage Company requires such.  Even still, self-insuring usually only works in the movies.

Jun 12, 2016 02:22 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon Jason Sardi ,

Great to see you back!!Fabulous post!! Love the video.. I starting following ou again!!

Jun 12, 2016 03:17 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Hey Dorie - Why did you ever stop? ;)  Thank you!

Sham - If I ever have enough money where self-insuring would be viable, I'd hope to be smart enough to know to transfer the risk as I do now.


I appreciate it, Kat:)


Hey Chrissi - I'm sorry to hear about your friend and hope they are okay and brought back to where they were before the fire happened.  


Hey Bill - Long time, no chat.  Hope all is well with you.  My folks moved to Raleigh, NC back in 1998.  It was only a matter of time before I ended up down this way.  Charlotte proved to be close, but not too close ;)


Hey Patricia -  No immediate complaints on my end.  Hope all is well with you!


Shirley - True that.  And yeah, the land is the land and can't be replaced.  The house is the insurance company's responsibility to replace; the land is God's.  


Brian - It isn't easy (as surprising as it seems) to finance or insure properties in that value range.


Chris - More humor to come ;)


Harry - It really should be more of a consultation than a simple transaction.  However in most cases, it's not.  Consumers (and Agents) too often focus on price alone.


Beth -  Thank you!  Home Insurance in Florida is a whole nother ball game these days.


Kathy -  On its way, of course ;)


Sam - I've heard the same thing.  Here in North Carolina, companies found out they were undercharging on home insurance for years and had increases as well.  When claims start rolling in, rising costs are nature of the proverbial beast.

Jun 12, 2016 03:45 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Jason, I run into "reality checks" when people call to ask what it would cost to rewire their 100+ year old home. The truth is, more than a new home. Why? Unless they demo the entire interior, it's twice as time consuming to rewire an old home, plus demo work is much harder. 

Jun 12, 2016 05:53 AM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I think I could build a huge palace for the coverage my insurance imposes on our home.

Jun 12, 2016 05:58 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Jason!


       What a great blog post about the cost of rebuilding... especially here in Florida, where the building codes now require hurricane-proof windows, anchored studs, more expensive roofing materials, etc.

Jun 12, 2016 06:19 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Congrats on the feature Jason Sardi. There are many factors in gettting the right insurance for a house.

Jun 12, 2016 06:57 AM
Patricia Feager, MBA, CRS, GRI,MRP
Selling Homes Changing Lives

Welcome back Jason Sardi! This is an excellent post. Most people will never really know how good their insurance is unless they have to file a claim for a catastrophe. I speak from experience. I had an electrical fire and 1/2 my house burnt down but the half that didn't burn down was damaged by the water the firemen used to put out the fire, ice, sleet, and rain (I lived in Illinois). The overall damage was surreal and it occurred when with wind chill factors was 65 degrees below zero. I got to poke around once with the Fire Marshall but that was with their flashlight and I think I was in shock. The insurance company did not pay out for temporary housing until after the investigation. I had to find a hotel but only one would take a dog and it was located much further than I lived. I had to produce inventory of everything I owned (years later, I discovered I missed more than I listed and they wouldn't honor it). None of my older furniture was covered with replacement coverage because the insurance company considered it antiques and I didn't have antique insurance coverage. I lost more than I got back from the insurance company and what I couldn't prove with receipts (didn't matter if I had pictures or not) they wanted receipts and I couldn't produce them for gifts); without proof, they didn't reimburse me. 

Jun 12, 2016 07:31 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Jason Sardi I always wonder why they want us to insure for lot more than what it may need to rebuild the house!

(I mean lot more than trashing and rebuilding...)

Jun 12, 2016 04:09 PM
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Good job Jason Sardi - thanks for the info and the humor as well

Jun 12, 2016 09:08 PM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

When the steep home insurance hike is out later this year, home owners will really shop around and argue that they are over insureced.  

Jun 13, 2016 12:22 AM
Karen Mathers - REALTOR®
Keller Williams Vero Beach - Vero Beach, FL
When it Matters, Choose Mathers! 772-532-3221

Wow, you are correct. The amount they want to insure a home for is crazy.  I thought it was only a problem in Florida but I see they are not discriminating as they squeeze everyone!

Jun 13, 2016 04:19 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

I remember speaking with a lady not long ago who finally had their insurance re-quoted - after 20 years. The new agent really educated her on letting it just re-new every year!

Jun 13, 2016 06:46 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

What is this I see???  Blink .. blink ..  it's Jason Sardi!  So great to see you stranger!  It's been far too long ...

I'm hoping that this is just the start of many contributions we will enjoy from you in the future?   

Welcome back!


Jun 14, 2016 01:58 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Hey Gene - Thank you, my friend.  I am hoping to contribute regularly this tim e around.  Hope all is well!

Jun 15, 2016 03:00 AM
Roy Kelley
Retired - Gaithersburg, MD

I hope all is going well for you and we will soon see your current posts.

Have an outstanding August.

Aug 06, 2023 02:15 PM