Usually the issue is that the insured amount has not kept pace with rising prices.

However, a "big old house" could cost more to replace than it is worth... Replacement cost may be reflected in your coverage.

Nope. I've done estimations on line and the current insured value is 4 times higher than the high end of the cost to build a house of the same size.

Instead of complaining here, why not seek quotes with other insurers - and share those quotes with us?

Most insurers won’t insure something for more than it is worth.

Games insurance companies play are just another example of what used to be considered fraud now being accepted as scam and overlooked by law enforcement. My insurance agent is third generation of the agent I bought from in 1965. Every time I've been less than 100% pleased the agents did what it took to see that I was. More important is suggestions and recommendations I received regarding policy changes.

I think you should do as Stax said.

We have no idea " the obscene" no idea your locale, No idea the home or anything else.

No matter how long you have had the policy? Go shopping for another. Or have your local agent to the house and a Big DISCUSSION.

Policies are typically for the home's Replacement Cost Value (the cost to rebuild) or its Actual Cash Value (replacement cost minus depreciation). Choosing Actual Cash Value (ACV) allows you to take the payout and move rather than rebuild, and can be a lower-cost option if rebuilding isn't a priority. Talk to an agent/broker who will explain the types of policies and their difference and risk to you.

Lorraine, that is interesting. How is depreciation for the house structure determined? (I did a quick search and mostly saw references to appliances and such).
My question assumes that the house is paid off and there is no lender involved trying to protect their loan.

First ask your broker to explain this change, how it is calculated, and why this high cost.

We have Chubb and have loved them. We owned a historic home and they actually understood what the cost would be to rebuild OUR home replacing with the same materials, not a crappy rebuild. To rebuild our home would cost much more than what our home would sell for. Labor and materials have skyrocketed. They’d be rebuilding plaster walls, replacing historic molding, antique fixtures. That costs a lot more to insure than rebuilding with drywall and Home Depot molding.

We have an extensive umbrella policy with them and the overall coverage is great. But it might not be what you need for your circumstances.

I was in a terrible car accident labeled my fault and they were saints throughout the entire process. My 11 year old ford fusion was totaled and they gave me a replacement value of the original cost of the car. Who does that???

Shop around. If you are not in California, you may have several good choices. I would talk to a good local contractor about the cost to rebuild and the cost to replace the contents. There may be a reasonable consultation fee for the contractor's time.

We are doing some insurance shopping, but we live in a small state without much competition. One thing Chubb said was the minimum they will ensure our 12yo Subaru for is $60K! If we totalled it, I doubt they'd give us more than $20K for it and we couldn't sell it for that.

Your FICO credit score + your insurance score will also dictate your premium.

Is the OP still interested in the thread they started.

Yes, I still am.

Our replacement cost estimate went up quite a bit this past year as well, but one thing I'll note—we recently explored doing an addition to our home and the cost estimates are through the roof compared to when we looked at the same project in 2021. I actually think our insurer is underestimating the replacement cost value based on the quotes we've gotten (which were basically equal to what the insurer thinks the whole house would cost to rebuild, but for a fraction of the space). Like Kendrah's house, our is an older home that would cost considerably more to rebuild than it would sell for, and our policy does specify that it covers rebuilding with those finishes and details. I do find it frustrating that, like your policy, ours has a set percentage for our detached garage that goes up or down based on the overall insured value of the house, and our garage is similarly a pretty bare bones structure.

On a side note, we drive a similarly-aged Subaru and that coverage value is nuts!

I always think our insurance companies are way underestimating what it would cost to re-build our houses ... I thought that in CA and in FL with different insurance companies. In CA I was doing a remodel project every other year, so I had a good grasp of current building prices. I built new in FL in 2021, during covid, and prices have continued to increase.

@ShadyWillowFarm I thought insurance wouldn't insure something for more than it is worth, but my garage and contents can be replaced easily for 1/3 of the amount they want to charge me. We have two houses and two insurance companies and in both "Other structures" are calculated as a fraction (usually 20%) of the cost of the main structure. For our summer house, that means a jerry-built shed was worth nearly $30K, when replacing it with something much better would cost $5K. For our main house, an unheated, basic garage is priced as if it were a guest house.

One thing Chubb said was the minimum they will ensure our 12yo Subaru for is $60K! If we totalled it, I doubt they'd give us more than $20K for it and we couldn't sell it for that.

Seriously, when our car was totaled, they gave us the value of what the car would have been NEW at the time it was totaled even though it was an 11 year old car. They paid for us to get a new Ford Fusion, not the cost of an 11 year old Ford Fusion. We were totally shocked. It was during covid when cars were extremely expensive and they gave us the cost of what a new, expensive covid priced Ford Fusion would have been. And, they paid for a rental car for a month. And, I never had to deal with any kinds of adjusters or lawyers or anything. It was all pretty seamless. We ended up getting a Mazda CX-something crossover instead. But we had a generous chunk of change from Chubb to spend on it.

I know nothing about what Subaru's cost. But, I'd call your agent and ask for an explanation of all of this.

Other Structures is usually 10%, and that is the limit for all other structures, not what they will pay out if a dinky little shed is destroyed.

I would definitely shop my policies, there is a wide range of coverages and it sounds like you are likely paying too much.

Where I lived the house prices for a new build have gone up huge and so insurance has to cover that in the chance of a complete loss that is what insurance is for it has not much to do with the house values as they sit. Home insurance has nothing to do with car insurance IMO . If the house burned down tomorrow do you not want to build a house that was at least the same as the one that burned down that is what house insurance covers. There are lots of insurance companies so shop around if you want we found staying with the same company for a long time kept our premiums a bit lower but we just sold and the new owner has to pay a lot more than we did for the same house