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We are getting quotes for homeowners insurance on a property we are buying, and the estimated replacement cost for each quote is wildly different. We've gotten five quotes so far, and gave the same information to each insurance company. The "Replacement Value" we've been given has been $110,000, $210,000, $225,000, $250,000, and $350,000. Each company also had an option for us to change the suggested Replacement Cost Value, but only in a small range around their estimated value.

It seems weird that each company is so extremely different from the others, and the premium and deductible are based on the listed replacement cost, so we can't even compare apples to apples with the premiums to figure out which is the best option.

In the event of a total loss, if the actual cost to rebuild is higher than the estimated replacement cost, are we just out the extra amount over the listed replacement value? The replacement value is also significantly lower than the actual purchase price of the property.

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    Some companies offer a guarantee on the replacement value. You accept their estimate of what the replacement value is and they will cover it even if it turns out they were low.
    – Loren Pechtel
    Nov 3, 2021 at 1:03

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In the event of a total loss, if the actual cost to rebuild is higher than the estimated replacement cost, are we just out the extra amount over the listed replacement value?

There are different types of coverage, an estimated replacement cost could be the max benefit or just a figure used to determine your premiums, you'll have to read each policy to understand the limits/types of coverage you're getting. Many people are under-insured, but total loss is so rare they may be fine with the additional risk. Policies are annoying to compare, that is true.

I would imagine most of the variation in the replacement value between companies has more to do with the coverage they provide than them having very different ideas about what actual replacement value would be, but depending on your area it could be very difficult for them to accurately estimate replacement value.

The replacement value is also significantly lower than the actual purchase price of the property.

This is common, the property has value even if there were no house on it.

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    Re "...the property has value even if there were no house on it." In some cases, the property might even be worth more. In hot real estate markets, a "scraper" is a property where the buyer intends to demolish the existing building(s) and build something fancier.
    – jamesqf
    Nov 2, 2021 at 16:59

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