Quote:
Originally Posted by WinnisquamZ
The high cost of replacement in materials and labor is the major reason insurance costs are skyrocketing. If an insurance company and customer determine before hand a replacement number would that lower insurance costs. Example, if total coverage cost is 900k to replace the home. What if a customer says I would accept 500k if an accident occurred. Would that not lower ones insurance payments?
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Under most policies if you only carry say, 50% of value, the settlement on a partial loss can be adjusted down to 50%, or whatever the ratio is of coverage to value.