We bought our dream home about a year ago. It is waterfront so the land is worth much more than the home, about 60/40 land. We initially set the rebuild/replacement value at about 65% of the purchase price. The carrier sent an appraiser out and 6 months later decided the “real” value would be about 80% of the purchase price, and the rebuild cost per sq ft would be $500 when the State avg is $285. Concurrently, we had our first claim- which was a leak that prior owners failed to disclose and the insurance company is subrogating. We were promised that the premium would not increase, but a month later the replacement cost increased another 10% and our total premium 20% at renewal.
2 days after renewal a pipe bursts. Looking at the claim estimate, many of the line item costs either decreased or stayed the same from the prior claim- when the insurance company is insisting the rebuild costs increased 10%.
In an even odder coincidence, my co-owner had a claim for water damage in 2018 on a very average home. The same line items as this claim are only about 15% lower- when inflation for the period is over 30% on building supplies and labor.
If we are getting charged premiums based on top-echelon materials and professionals, how do I ensure that is the category/grade/etc. being chosen in the claims software by the adjuster?