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04-30-2018 10:50 AM
Would anyone be able to tell me why an insurance company needs the actual heat and air square footage before giving a quote. I thought it was based on loan value. Thanks.
04-30-2018 10:53 AM
@Elom. Why don't you ask the insurance company? They'd certainly have a better idea than we would.
04-30-2018 11:01 AM
They will check the tax rolls for assessed value and square footage, but they need the actual dimensions in order to calculate replacement costs. Loan value has nothing to do with it.
04-30-2018 11:05 AM
@Elom wrote:Would anyone be able to tell me why an insurance company needs the actual heat and air square footage before giving a quote. I thought it was based on loan value. Thanks.
Companies usually factor in square footage in case damages require all or part of the house to be rebuilt. Bigger space = more construction materials = higher cost to rebuild, regardless of what you paid for the home.
04-30-2018 11:05 AM
Your homeowners insurance is based on how much it would cost to rebuild your house, not on how much your loan is. If that were the case then those with paid off homes would pay nothing.
04-30-2018 11:12 AM
Snippy
04-30-2018 11:14 AM
To those who answer the OP's question - thank you.
04-30-2018 11:36 AM
Thank you all that makes sense. Also to the one answer I have been in contact with my insurance agent he only says he needs it to calculate costs. However I was given a quote on loan value thru developer. Thus the inquiry.
04-30-2018 12:16 PM
@Elom wrote:Thank you all that makes sense. Also to the one answer I have been in contact with my insurance agent he only says he needs it to calculate costs. However I was given a quote on loan value thru developer. Thus the inquiry.
I assume the developer either already knew the square footage or could find it based on other info in your application (like the property address). They likely used it, but didn't need you to provide it.
04-30-2018 04:01 PM
@Elom wrote:Would anyone be able to tell me why an insurance company needs the actual heat and air square footage before giving a quote. I thought it was based on loan value. Thanks.
It has to do with replacement value, not loan value. If you need to replace the whole house, it will not matter what your loan was.
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