Home Warranty Companies

[vjp2.at]

Generally people overpay for insurance and warranties. First of all, the land usually is going no where. So insure the replacement value of the house, not the land. I believe many modern techniques make a new house cost a lot less than most people believe. In such cases, it is better off to self-insure, keep a home-repair account and put one third the value of a new house in the account every year for three years.

- = - Vasos Panagiotopoulos, Columbia'81+, Reagan, Mozart, Pindus, BioStrategist

---{Nothing herein constitutes advice. Everything fully disclaimed.}--- [Homeland Security means private firearms not lazy obstructive guards] [Urb sprawl confounds terror] [Phooey on GUI: Windows for subprime Bimbos]

[Metspitzer]

Put the third of the value of a new house in an account?

You do know it takes the average home owner 20-30 years to pay off a house.

Who has the money to put a third the value of a house in an account in a years time? And then do it 3 years in a row.

Do you own a home?

[trader4]

Sounds like we have a 10 year old here. Subtracting out the cost of the land, still leaves a huge amount that very few are going to cover in 3 years, or even 10. I'd like to know what these new construction techniques are that make houses so much cheaper to build today.

Plus, insurance companies do only insure for the cost of the structure, not the land. It's not like you can go to the insurance company and say I want a policy for X total amount, regardless of what the real value of the house is. They base what they will insure it for on a number of factors. I have Allstate and think their estimates, which they adjust every few years or so, are about right