when purchased our home we were required to insure for 20000. when we went to refinance it was devalued to 15900. can we get insurance prem. lowered

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Aug 18, 2010

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Insurance Question from Grant Township, MI

Asked on 08/18/2010

when purchased our home we were required to insure for 20000. when we went to refinance it was devalued to 15900. can we get insurance prem. lowered NULL

Answer given on August 19, 2010

Homeowner insurance is to be written in the amount of the replacement value of the home, which is not necessarily the same as the loan value.  If the insurance amount that you were originally required to purchase was higher than the replacement cost, then you could discuss the correct amount of insurance needed with your insurance agent.

Your agent should be able to help you determine the correct replacement cost of the home through an inspection or with a program that many insurance companies use to determine rebuilding costs.  You need to sit down with the agent to review the information on the home to be sure you are properly insured, while not being over insured.  It is possible that the replacement cost of  your home is higher than the market value.  You need to protect yourself so you will be properly reimbursed if the home is destroyed by a covered loss.

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