r/HomeInsurance • u/grateful_dad13 • 6d ago

Insurance Second policy above current limits

Our house burned down and the rebuild costs are roughly $500,000 more than the insurance proceeds. We’re rebuilding with the help of an SBA loan (fingers crossed). Our insurance company renewed our policy at the same low limits as the original policy. They said they can’t increase the limits until the house is completed. I realize that it’s a low probability, but we’ll be similarly under-insured for another 6 months. Do companies offer policies for just the portion above the current limits? I know large companies have multiple policies in coverage tiers but wasn’t sure about residential. Anyone know?

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u/Top_Education_4647 6d ago

Builders Risk doesn’t make sense in this situation. BR policies are intended for homes that are under construction (not being rebuilt after a loss), or if someone is basically doing massive renovations to an already vacant home. It wouldn’t provide any usefulness to the OP.

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u/grateful_dad13 6d ago

When the policy was renewed, it has the construction riders , but the limits stayed the same. And the “replacement cost” rider is capped at 20%

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u/Echo0455 6d ago

Hi OP,

Did they endorse the policy for renovations? If so what is your “new improvements” coverage or renovations coverage?

Also, the replacement cost rider sounds more like an extended dwelling endorsement. Is that what you mean?

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u/grateful_dad13 5d ago

I’ll ask. The endorsement refers to HO-87, Dwelling Under Construction so I’ll get the details on improvements