When you write a bi-level/split foyer home what how do you handle the bottom level for RCV? For example, the home I am writing has a sq footage of 1152 for each level. According to the tax records and the apprsial the bottom level is treated as a basement. The bottom level has a bedroom and full bathroom with a playroom and man cave. If I write it as 1152 sf and 100% finished basement the RCV is a lot less then if I write it as 2300 sq ft. What is the standard here? Thanks.
Question on BI-Level Homes
- Thread starter DJAJ
- Start date
- 736
I think this question is best left to the underwriter of the carrier you are quoting.
Every carrier will treat it differently.
I can tell you my carrier wants LIVING SPACE sqft, so that would make the tax class of basement irrelevant, while other carrier may say that's basement and leave it out.
But you would include the RC cost for the finish basement anyways wouldn't you?
Every carrier will treat it differently.
I can tell you my carrier wants LIVING SPACE sqft, so that would make the tax class of basement irrelevant, while other carrier may say that's basement and leave it out.
But you would include the RC cost for the finish basement anyways wouldn't you?
- Thread starter
- #3
Yes, but my fear is if I write it as 1 level with 100% finished basement that I may be underinsuring it the home. RCV with this way comes up to 235K if I write as 2 levels at 2300 sq ft it comes up to 280K.
- 676
If the basement is finished, I would include it. The guy put money into it, so he will be looking to get it back if it gets destroyed. Contact your carrier to make sure.
- Thread starter
- #6
Depending on the town/state you can make your own ball park by multiplying the square footage by a certain dollar amount.
Average houses in MA are (ballpark) between $180-$210 per square foot. If it's in a poorer area or really low quality $150. Nice homes (granite counters, marble floors, etc) $220+.
That way you can ball park it so you know what you're shooting for.
I have some carriers that want total living area used, and I have other carriers that just use living area not including finished basement with the basement listed as 100% finished.
Edit: As a general rule, if I'm not sure I'll go for the higher amount. I'd rather over-insure than under-insure and the inspection will determine if I'm too far off anyway.
Average houses in MA are (ballpark) between $180-$210 per square foot. If it's in a poorer area or really low quality $150. Nice homes (granite counters, marble floors, etc) $220+.
That way you can ball park it so you know what you're shooting for.
I have some carriers that want total living area used, and I have other carriers that just use living area not including finished basement with the basement listed as 100% finished.
Edit: As a general rule, if I'm not sure I'll go for the higher amount. I'd rather over-insure than under-insure and the inspection will determine if I'm too far off anyway.
rccola
Expert
- 45
For my carrier, a bi-level isn't considered to have a basement. It's all considered living space. Best of luck.
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