Please could someone advise as I think I am being led wrong.
I am buying a house in Texas for $100 thousand and applied for Ins, they came back and said they valued the coverage at $174 thou, I argued this saying to replace that house if it burnt down would be about 80, but he said no matter its what the computer says.
He also want on to say I dont have to pay for full cover, I can pay 80 70 60% etc.
So I said to him if we pay for 50% [$86 thou] and the house burns down and needs rebuilding at a cost of say $80 thou I will only receive 50% of that cost which would be $40 thou. He said no you would receive $86 thou, please is this right? I think I am being tricked here, I mean if what he says is right some people would Insure for 174 burn the house down rebuild for 80 and pocket the rest.
Of course not thinking that but I do think there is a reason why they have said the coverage needs to be so ridiculously high. Thanks.
Read more: It concerns home Insurance and am a bit confused?
