Wow, quite a diversity of experiences reported here. This makes sense to me: no conventional appraisal required because "the value of what's going up is constantly changing," but then I wonder how the insurance company decides how much insurance to sell you and what to charge for it. The value of what is on site changes with every wood delivery, and every day the plumber shows up and puts in another day of work. So even though I sort of understand what goes into a conventional appraisal, this still seems different to me. We have the final construction amount the architect estimated to go along with the permit application, and then at any point, we know how much we've spent on labor and materials, but I don't know how the insurance company would use that info. It seems that the cost for "replacement" of a destroyed or damaged structure would be different from "market value" which is what a bank would want to know for lending purposes. But perhaps I over-think! For what it's worth, the house is in a remote, but not inexpensive area (a ferry-served island). Comps are always hard to do there since inventory is always low and prices range from sort-of-low (200Ks for a lot with a shack) to insanely expensive (many millions) with no two alike. The two extremes may not be far apart in terms of distance, but the high end will be waterfront. So "neighborhood" is hard to pin down. The population is small and most people do not lock their cars or houses routinely (not sure I'll get to that point after so many years of urban life, though). We are doing every thing with permits and qualified subs and GC, no DIY other than simple stuff. (I don't know if any of that matters for my question on the insurance process, but some readers seemed to assume we were doing something funky, owner-builder, long time-frame, and in a rural area that might be inexpensive and/or crime-prone.) We'll see what response we can get out of State Farm on Monday-- even Mr Overly Patient has had enough of the "no response" routine. Will let you know how it turns out.

Hi Sue...found it. Your policy will pay a max of $2500 period. There are several types of "contents" that have limited coverage...unless you "schedule" them. Scheduling involves getting appraisals...usually within 3 years old...and adding them as a rider with a fee. With me that fee for jewelry is $16/thousand (ie; $10K Ring= $160 in additional premium per year). Jewelry is the biggy, but furs, guns, fine art, silverware, etc. are also limited. Most companies will allow you to schedule those items, but there will be a fee. The problem I think your having is confusing how your everyday items...TV's, clothes, furniture, etc...are covered and how these specialty items are covered. Your TV, if stolen would get replaced with the same make and model at todays prices...AS LONG AS YOU REPLACE THAT ITEM. They WILL NOT give you cash for the replacement value. What they do is cut you a check for the depreciated value up front, then give you the balance once you replace that item and show proof of purchase. Jewelry however, is a completely different animal. As I said it's basic coverage is very limited on all policies. It can always be expanded for a fee and I always recommend that for valuable pieces. And yes, they'd only consider $8k, not $16k. Don't let that confuse you, they said they'd CONSIDER $8k, not pay $8k. Based on what you're telling me, they're only paying $2500.

Times they are a changing! This 5,750 sf.build, next to Toronto, according to a broker we've dealt with before: Property insurance was quoted with & without coverage for flood & earthquake Including flood & earthquake $16,078 for 18 months Excluding flood & earthquake $15,451 for 18 months Liability Insurance was quote 3 different limits $1,000,000 general liability for $375 $2,000,000 general liability for $500 $5,000,000 general liability for $750 Am getting a second quote. Also going to reduce the coverage to exclude six-figure+ permit, consultant and architectural fees and excavation. Query, if the house burns down, does our municipality require you undertake the whole permitting process again?? Nothing would surprise me.

A lawyer and contractor will work better than a PA. See if your state has any consumer protection laws. In my state "unfair and deceptive business practices" can pay triple damages plus legal costs. A simple "demand letter" is sent outlining the loss and the insurance companies actions. Guaranteed you will be contacted by an attorney representing the insurance company and he'll be ready to deal if you have been treated unfairly.