2007-11-27 16:45:31 · 5 answers · asked by Anonymous in Business & Finance ➔ Insurance
Why would they? Insurance doesn't pay to BUY your house, it pays to FIX your house. And I haven't noticed any decrease in contractors rates or construction materials. Quite the opposite, actually.
2007-11-28 01:43:19 · answer #1 · answered by Anonymous 7 · 1⤊ 0⤋
Not going to happen.
The sale price of houses may be going down but the cost for materials to build the house has not.
The coverage limit on the structure is determined on the cost to rebuild the house exactly as it is in the event of a total loss - not the sales price. It is possible for the house to sale for less than it would cost to rebuild it with new.
2007-11-28 00:03:33 · answer #2 · answered by Boots 7 · 1⤊ 0⤋
Homeowners insurance covers the cost to re-build a house not the market value. In the majority of the U.S. the costs associated with re-building a home have been and in my opinion will continue to go up at an even greater rate since those costs include energy costs in all phases from the initial manufacture of construction materials and equipment to transportation and labor costs.
2007-11-27 17:01:25 · answer #3 · answered by Margarita D 6 · 1⤊ 0⤋
Of course not. The market value of a house has nothing to do with the costs of the repairs if the house is damaged. Insurance premiums are based upon cost estimates, and not upon market values.
2007-11-28 00:40:35 · answer #4 · answered by acermill 7 · 1⤊ 0⤋
It isn't likely to happen. Although it may be costing less to purchase a house, it isn't getting any cheaper to rebuild one that is damaged or destroyed by catastrophe.
2007-11-27 16:48:31 · answer #5 · answered by Anonymous · 2⤊ 0⤋