Ohio home ins question

[Marthe48]

I'm getting ready to pay home ins. on a policy we have. The company says in OH, the law requires you to carry the cost of replacing a house. It used to be you had to have enough to cover the mortgage. I read that ins. companies have begun insuring for replacement value, because it is a legal way to raise the cost of the premiums.

If anything happened to the house I'm insuring, I wouldn't replace it. I'd pay off the mortgage, clean off the lot and sell the land.

I looked up OH laws regarding insurance, and the thing I read says it is recommended to protect the home owner, but it didn't say that the law requires the homeowner to buy the replacement coverage. Any thoughts? Thanks!

[gibraltar72]

1. I sold

insurance in Mi. I'm guessing the law you are referring to says if you don't carry at least 80% percent of replacement cost. the insurance company can only pay a proportionate amount for a loss. In other words older homes are worth less than it would cost to replace them. An example a home has 100K replacement value. but is worth 50K your coverage is for the value of 50K. You have a fire in kitchen damages only that room. Estimates say repair is 40K insurance only pays half. It is a common insurance law in many states. Hope that helps.

[Marthe48]

2. I'm not sure

I read about the 80% of the replacement value. I'm just wondering it if is actually a law requiring a homeowner to carry insurance they don't necessarily want. The house is a 1930's 2 story brick, our huge dream house. We bought it a couple years ago, lived there a year, then because of illness, moved back to our ranch, which we had never sold.

The ins. company wrote a policy on the 1930's home, giving it a replacement value of $240,000.00. We paid $70,000.00 for it. Realistically speaking, it wouldn't be possible to replace it as it sits, and I wouldn't if anything happened. Everything is changed now, and since I am in the process of changing things into my name, I wanted to take another look at the policy, which is due.

Thanks for your comment. I searched Ohio Revised Code, and have not yet found a law saying I must carry replacement value.

[MiniMe]

5. Have you tried different insurance companies?

I would wonder that too, but it is worth getting a different quote.

[Marthe48]

6. I put a lot of things off

my husband was sick, and I dropped everything to tke care of him.

[MiniMe]

7. So sorry, that is always hard

I think I'd try different insurance companies, you never know what they will come back with. Is there a mortgage on the house? It is always good to get different quotes. Sometimes, if you have car and home insurance with the same company, you get multi-policy discounts.

Hope your husband is OK now.

[Marthe48]

8. We used to

but I split it when it stopped being a deal. If I talk to a new company, I'll see what they offer.


Unfortunately, my husband passed away the end of January. He didn't get good news with his diagnosis and we spent all the time together that we could. I've been getting things squared away since he's gone, catching up on things I put put off. I always did the bills and things, after we talked it over. He was a total wizard at getting the best deals and he loved digging away at something.

There is a mortgage, but it is on the ranch, because it was worth more, go figure.

We were planning to sell the house I want less insurance on, and I'll go ahead with those plans.

[MiniMe]

10. Very sorry about your husband

This has to be a terrible time for you.

The reason that I asked about a mortgage is that it is usually the mortgage company that insists on insurance on the property to protect themselves. Hope the house sells quickly.

[mnhtnbb]

3. Call another insurance company.

http://www.insurance.ohio.gov/Consumer/OCS/CompleteGuides/CompleteHomeGuide.pdf

[Marthe48]

4. I think I will

I wanted to before, but put a lot of things aside. Thanks!

[Marthe48]

9. I found an email to send a question

Ohio Department of Insurance, Consumer Affairs. I'll post what I find out. Thank you for all of the suggestions

[Marthe48]

11. Having replacement ins. is not a law in OH

Ohio Department of Insurance, Consumer Affairs replied, very timely. You are not required by law to buy replacement ins. if you are a homeowner. But most insurance companies offer only cost of replacement policies. I am supposed to ask my lender if having just the mortgage covered is acceptable, and look for an ins. agent who offers 'Actual Cash Value' policies.

I'll change agents when everything is updated. If they are inaccurate on something basic, what else are they missing?