A friend of mine is looking to buy a house and the pricethey think is higher than it is appraised for. They are trying to get the price the owner is asking lowered. Does buying the house at the higher price than appraised for cause problems when trying to get homeowners insurance. They have heard alot of people say stuff about it but am not exactly sure what to do. Is there anyone who is an insurance agent familiar with homeowners out there who can help with this problem?
Insurance Company's will go off the appraised value of the home. But you can get replacement cost on your policy, and replacement value will be determinded if somehting happens to your home and the mortgage has to be paid in full. The underwriter for the mortgage company will take into consideration replacement cost.
Happens all the time. You just gotta shop insurance agent/companies.
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