I just got a letter that my insurance company will only covered my house for the purchase price?
I purchase the house on 10-31 - as was told by my agent and paperwork that said I was covered for $70K
today I get a letter stating that I will not be covered until 11-18-05 , and my coverage has been reduce to purchase price of 25k. Thats crazy, my mortgage is more then that - because of lender fees - and rehab cost …
the house is worth 88k repaired …
I got water on , and gas - anything could have happen to the my house since then…
What can I do in the future - besides use this insurance company… to prevent this happening in the future
I usually have the opposite problem. I buy a house for $12K and only need a few grand for repairs and the agent wants the policy at $40K. I use a builders risk policy and they will add the as repaired figures and insure it for the added value. Sounds like if you get some more quotes you will be able to get what you need. I use the internet to get bids on regular property insurance.
I would call the agent and spend about 5min (i.e. tell them to fix it ASAP). Otherwise, just go get a new insurance company…soemthing is strange. Usually insurance companies want to OVER-insure you; especially here in SoCalif. after they got their pants sued off for UNDER insuring people right after the big fires in '03.