We aren’t rich. We aren’t poor. We are just starters. So what?
In short words it means that we don’t have many things… yet. At one point we definitely will have but now as far as I can tell all will easilly fit into our Jepp and Ford so the whole move-out-in thing will be simply one trip from the old place te the new one.
But what is has to do with home insurance? When you buy insurance for condo you have to choose for how much you want to insure your part of the building and how much are worth your personal belongings. It turned out that many insurance agencies have pretty tight rules about how to calculate those things. Most popular is the rule-of-a-thumb, which in short words multiplies sqare footage of your house by some abstract parameters (e.g. quality of stuff) and comes out witch funny amounts. Some other won’t let you to insure the building for more than your personal things.
All this crap is for one purpose - yes, you are right! - to maximize profits. The effect of those tight connections between values is that you usually have to overinsure one part of the equasion to get the second one covered enough. It’s clearly visible when you have to overinsure private stuff - as it has the bigest premiums (house is hard to steal, isn’t it?) - overinsuring it just by $10k may make your premium one third bigger.
So be carefull and smart when you are shopping around. Ask as many questions as you can, get at least 5 quotes. Keep in minde that you are insuring your house for a year - if you plan big investments (new furniture, home entertainment, computers etc…) move your amounts up. And if you are pretty sure what you want, go to State Farm.