Hello! I'm a first-time homebuyer trying to decide between two different home insurance options. One has a slightly lower premium and higher coverage amounts but lower extended replacement coverage. Here is how the two compare essentially:
- Option 1: (total premium: $1,042)
- Coverage A: 482K
- Coverage B: 48K
- Coverage C: 265K
- coverage D: 96K
- 25% Extended Replacement cost
- Option 2: (total premium: $1,098)
- Coverage A: 302K
- Coverage B: 30K
- Coverage C: 211K
- Coverage D: 60K
- 100% Extended Replacement Cost
- Also some additional benefits, like a service line endorsement, and stronger ordinance and law coverage
My insurance agent is recommended Option 2, with the argument that the extended replacement cost will end up beating the higher coverages in Option 1, and with Option 2 that Coverage B and C are linked to Coverage A. There are some other details not included here of course, but does this argument make sense?
Posted by cshap88