insuring newly build garage

[Mainiac Mat]

insuring newly built garage

Well my COVID garage build is getting close to completion, and my home owners insurance renews in June.... so it's time to get serious about insurance.

My current policy insures all out-buildings at 10% the valuation of the home... and that's not going to cover the replacement cost of even materials.

Rep. is saying that we will need to value the garage separately... but this is tricky, as I built it myself, so I can't just show them the receipt.

They suggest $60 to $65 / sq. ft. but for a 26'x30', this only get's you to $50K... and I'm estimating I have ~$40K into it with nothing added for my labor.

Another complication is how to account for the room-in-roof trusses (aka. attic trusses) and the attic space created.

Any thoughts or tips on how to value my new garage for insurance purposes?

 

[vavet]

Are they asking for proof what it costs to build?
My insurance company just wanted to know how much I wanted it insured for and I gave them a number. Size was equivalent - 24x32 = 768 sq ft.

 

[tarmy]

I have a 32’x56’ custom garage/shop/bunkhouse...

They asked how much do I want to insure it for, whether I want replacement or code upgrade coverage as well. Price quoted...

I have a separate umbrella policy as well.

 

[NickH]

We added our 30x50 to our policy once we started the framing. They only asked the size, and approximate value (not cost). Easy Peasy

 

[K'ledgeBldr]

You should only need an “agreed upon replacement value”, and a separate rider to H/O’s policy.

 

[HPRifleman]

I just did this with my upcoming garage build.

My agent has a construction cost calculator that just used some basic information to figure out cost to re-build. Keep in mind that their cost calculator may not match what it actually cost you to build the building.

Your agent should be the one driving this and providing you a quote for a new premium. I would not expect there to be much haggling.

 

[yeldogt]

I have a 32’x56’ custom garage/shop/bunkhouse...

They asked how much do I want to insure it for, whether I want replacement or code upgrade coverage as well. Price quoted...

I have a separate umbrella policy as well.

Umbrella is liability

 

[yeldogt]

Re: insuring newly built garage

Well my COVID garage build is getting close to completion, and my home owners insurance renews in June.... so it's time to get serious about insurance.

My current policy insures all out-buildings at 10% the valuation of the home... and that's not going to cover the replacement cost of even materials.

Rep. is saying that we will need to value the garage separately... but this is tricky, as I built it myself, so I can't just show them the receipt.

They suggest $60 to $65 / sq. ft. but for a 26'x30', this only get's you to $50K... and I'm estimating I have ~$40K into it with nothing added for my labor.

Another complication is how to account for the room-in-roof trusses (aka. attic trusses) and the attic space created.

Any thoughts or tips on how to value my new garage for insurance purposes?

Just bump it up ... Is it insulated w/ electric and heat ? Remember if it burns down you have the cost to remove it. That's part of the value.

Ask how they increase. Some you pick a number others you can do a percentage increase of the main dwelling .. the up-charge is normally so small you err on higher limit.

I would do 100k plus 15k or so to remove .... 115k. Around me a fully done nice but not outrageous outbuilding is $150sf w/ removal

 

[nadogail]

Is it an accessory dwelling unit?

 

[frankd]

You should only need an “agreed upon replacement value”, and a separate rider to H/O’s policy.

This may not work depending on what kind of policy you have. Even if you have replacement cost coverage, they're still not going to pay more than the building limit...unless you have an endorsement on the policy that provides additional replacement cost on top of the value of the building (usually shown as a percentage).

Most agents will be able to run a Marshall & Swift (or similar) building valuation. You can also pay a local builder to provide an estimate for the replacement cost of the building.

 

[aussieblake]

in 2013, I had a wind event damage my old stick built (to match the house, brick veneer etc.). it was roughly 28x30 with an 8ft ceiling. I never upped my coverage from the 10% for other structures. Mainly because I could build it back for that amount of money (roughly $33k of coverage for the shop). To my surprise, the insurance adjuster said it would cost more to tear it down and rebuild, roughly $56k, which is a ridiculous number in my opinion. Long story short based on coverage and payout I left $20k on the table. My new shop is 40x60x14, it is insured at a significantly higher amount and added minimal cost to the HO policy. Keep in mind it is structure only and not contents on this policy.

 

[yeldogt]

Most people never think about removal -- it can be expensive.

There can be other costs .... a partially damaged building may be a safety risk requiring emergency fencing. Specialized equipment to bring it down.

When you need to pay for speed -- not going to get a good price.

How about building today? Long delays and ever increasing costs ...

 

[dcg9381]

"agreed value policy"

I've always wondered - for a full tear down, you'll have to cover clean up costs, but aren't slabs "reusable" in most cases?

 

[yeldogt]

"agreed value policy"

I've always wondered - for a full tear down, you'll have to cover clean up costs, but aren't slabs "reusable" in most cases?

Agreed value is for a personal property ... it's often a vehicle. I say it's worth "X" .. you say "Y" .... I pay you to agree to value "X"

 

[Sumboodie]

Most people never think about removal -- it can be expensive.

There can be other costs .... a partially damaged building may be a safety risk requiring emergency fencing. Specialized equipment to bring it down.

When you need to pay for speed -- not going to get a good price.

How about building today? Long delays and ever increasing costs ...

Put it in a pile and burn.

 

[Pike2350]

my agent just asked me about this. I hadn't thought about it, but when he asked, we only had outbuilding coverage for up to $16k. This is through Allstate btw.

Since I has finished the garage in October, which he knew, I said it needed to be higher. He could go to $110k on out buildings for a whopping $4/year in coverage.

Never was their discussion of cost to build/replacement. Just "will that cover it"

 

[yeldogt]

my agent just asked me about this. I hadn't thought about it, but when he asked, we only had outbuilding coverage for up to $16k. This is through Allstate btw.

Since I has finished the garage in October, which he knew, I said it needed to be higher. He could go to $110k on out buildings for a whopping $4/year in coverage.

Never was their discussion of cost to build/replacement. Just "will that cover it"

Some companies have limits based on the primary dwelling -- so they max out the outbuilding percentage on the policy.

You see how cheap it is .... this is why people need to ask. It's often very cheap to get what you need. It's the basic policy that you pay for ......

I'm sure he just maxed it out ... if you said "NO" ---- that would have required a policy change.

What's the point of saying 90k and saving 75 cents .......

 

[Pike2350]

Some companies have limits based on the primary dwelling -- so they max out the outbuilding percentage on the policy.

You see how cheap it is .... this is why people need to ask. It's often very cheap to get what you need. It's the basic policy that you pay for ......

It was during this conversation that we also had to up the policy limit on the house. Due to the cost of materials and the crazy home price increases since we bought the house...if anything happened, we would've been SOL. We upped the house policy value as well. I think the total change in policy cost for all of it was around $100/year.

 

[yeldogt]

It was during this conversation that we also had to up the policy limit on the house. Due to the cost of materials and the crazy home price increases since we bought the house...if anything happened, we would've been SOL. We upped the house policy value as well. I think the total change in policy cost for all of it was around $100/year.

Some companies review and raise the limits automatically.

Costs have really increased this year .. would assume more companies will be doing it this year.

This is where a good agent comes in -- you have to have enough rebuild coverage. All too often people use tax numbers .. they are always low. And when you rebuild after a loss you can't be looking to save money ..

Same if you have kids .. where and how do they provide replacement housing. There are lots of parts and $100 can make a huge difference if something bad occurs