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Old 10-02-2012, 06:14 PM   #1
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Rebuild cost and title insurance amount.


My insurance company guesses that it would cost $132,000 to rebuild a 1 story, full basement, with brick veneer.

I'm unsure what my title insurance is off hand but I think it was $120,000.

How do you figure out what they should be?

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Old 10-02-2012, 06:45 PM   #2
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Rebuild cost and title insurance amount.


Look at the guidelines concerning, asking about -
"How much would this cost"
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Old 10-02-2012, 06:46 PM   #3
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Rebuild cost and title insurance amount.


Read this on costs.

Also It is a good idea to include your location in your profile.
And check out how to Post pictures in the How To section,

To add your location to your profile see more How-To
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Old 10-02-2012, 07:01 PM   #4
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Rebuild cost and title insurance amount.


I under stand the rule about asking “how much would this cost”. I do not feel that I have asked for that.

I'm trying to ask about the rebuild amount that your home insurance is based off of and how much title insurance some should have on there home.


If a moderator thinks this post is not with the rules I would like to talk about it.
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Old 10-02-2012, 07:45 PM   #5
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Rebuild cost and title insurance amount.


Home insurance covers the cost to rebuild your home.

Title insurance relates to a loss or liability due to the invalidity of title to a property. Some typical risks include:

A defect in a lien, charge or other encumbrance

Some form of fraud or forgery

An inability to access the property that is uncovered

restricitive covenants that may affect the use of the land.

So to answer your question, your lawyer (here in Ontario anyway) arranges title insurance based on purchase price.

Homeowners insurance is based on replacement cost.... purchase price minus land value = replacement cost.
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Old 10-02-2012, 08:02 PM   #6
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Rebuild cost and title insurance amount.


Thanks for the info creeper. I could see how that could work, but that would not work 100% of the time in today’s market or when buying a fixer upper house like I did.

Purchase price on my house was $50,000.
Budget to fix up house $25,000 to $30,000.
Land assessment $17,800. info from GIS
Improvements $78,500. info from GIS
Tax assessment $96,300. info from GIS
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Old 10-02-2012, 08:10 PM   #7
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Rebuild cost and title insurance amount.


Here is a link that you may find useful


http://www.homebuyinginstitute.com/h...e-cost-on.html
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Old 10-02-2012, 09:59 PM   #8
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Rebuild cost and title insurance amount.


[quote=1950home;1022365]Thanks for the info creeper. I could see how that could work, but that would not work 100% of the time in today’s market or when buying a fixer upper house like I did.

Purchase price on my house was $50,000.
Budget to fix up house $25,000 to $30,000.
Land assessment $17,800. info from GIS
Improvements $78,500. info from GIS
Tax assessment $96,300. info from GIS[/quote

It works because title insurance is a one time expense unlike homeowners insurance that you have an annual fee.

Simply put, it guarantees you a free and clear title. You probably paid less than 1k for it based on what you paid for the property
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Old 10-02-2012, 10:41 PM   #9
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Rebuild cost and title insurance amount.


I under stand how homeowners and title insurance works and how they charge you for it. But I’m unclear on how to value my house. I thought that others would have been though this before.

I also understand that if I only insures on my house for $132,000. If I have a claim and they value my house at $150,000 they can decide I'm self insurance on the $18,000 (13.63%). At that point they would could only pay 86.37% of the repair leaving me to pay my deductible + 13.63% of the bill.

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It works because title insurance is a one time expense unlike homeowners insurance that you have an annual fee.

Simply put, it guarantees you a free and clear title. You probably paid less than 1k for it based on what you paid for the property
My understanding on title insurance is that it should be 110%+ of the retail value. They take out there fees, then the lawyer fees, and you get the left overs that might cover the cost of the property. The insurance amount should be changed every few years.
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Old 10-03-2012, 06:16 AM   #10
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Rebuild cost and title insurance amount.


Confusion is setting in.

Homeowners insurance premiums increase over time. Title insurance is a one time payment transaction. Has something changed that may affect you such as a neighbours fence or deck encroaching on your land.

Expropriation?? Maybe a hidden defect in the chain of title?

Other than that any repair goes through your homeowners

As far as appraising your property value, there are a few factors to add or subtract from the purchase price. Reno's or wear and tear. Time. Highest and best use of the neighbourhood.

Call a local Realtor for an opinion of value if you'd like to know

Last edited by creeper; 10-03-2012 at 06:28 AM.
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Old 10-03-2012, 08:37 AM   #11
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Rebuild cost and title insurance amount.


I feel that this has gone into a circle. I under stand that a realtor can give me an amount of what the house would be able to sell for at the current market.

The sale value of a house has nothing to do with how much it would cost if the house burnt down. Removal / tear down of whats left and rebuild.

I would of thought someone would dealt with this before and know an easy way to come up with better values.

I would like to thank everyone for there time.
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Old 10-03-2012, 08:45 AM   #12
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Rebuild cost and title insurance amount.


Well if thats the case then a local contractor will be able to tell you the average price per square foot of a home.

Around here its probably 10k to haul away an old house.

Its obviously going to differ in different areas of the planet
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Old 10-03-2012, 09:27 AM   #13
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Rebuild cost and title insurance amount.


Don't forget to include the cost of contents in your insurance estimate or do they list contents as separate line item for value?
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Old 10-03-2012, 04:27 PM   #14
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Rebuild cost and title insurance amount.


Quote:
Originally Posted by 1950home View Post
I feel that this has gone into a circle. I under stand that a realtor can give me an amount of what the house would be able to sell for at the current market.

The sale value of a house has nothing to do with how much it would cost if the house burnt down. Removal / tear down of whats left and rebuild.

I would of thought someone would dealt with this before and know an easy way to come up with better values.

I would like to thank everyone for there time.
It has gone full circle hasn't it. Because now you actually are asking for estimates of value
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Old 10-03-2012, 04:54 PM   #15
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Rebuild cost and title insurance amount.


Call your insurance provider and find out how they come up with the cost to rebuild your property. Then do some research on your own.

Talk to some local builders in your area and get an idea what it would cost to build a home of similar size and finishing as yours. I would even get a real estate estimate as well. You may even want to pay for an appraisal of the property.

In my case, I contacted my insurance company after our renovations were completed and we increased the insurance coverage based on a discussion of the improvements and costs. I was willing to provide them with photos, but they didn't require them as the replacement value was within reason.

I do think you are on the right track to ask the questions now instead of after a tragic event like a fire etc.

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