Cost Of House Insurance
How to estimate the replacement cost of a house in Zip 76133, Fort Worth, Texas, for insurance purposes?
The property tax was estimated based on the total property value (lot+house) of $106,000. The insurance company estimated the value of the house only as $146,000. It is a bit confusing. Can anybody explain the descripancy?
Well, it’s a bit more complicated than I have room to explain here. Basically, YOUR AGENT should be calculating it, as different insurance companies use different calculation models.
Effectively, you take the square footage, and construction, and look at a chart. You usually have to “interpolate” to get the ACTUAL base value for your house. You add for extras, like fireplaces, garages, built ins, porches, etc. There’s a HUGE list of extras, and how much each one is worth. THEN, you modify for the age of the house, then you use the “location multiplier” to come up with an estimate.
It’s not hard, but it can be tedious until you get used to it. But the value that ONE company uses can vary wildly with the value another company uses. Generally, most houses are between $150 and $200 per square foot.
