I was informed that my replacement cost on my residential structure was based upon the presumption of a hurricane disaster and that the cost of materials and labor would be more than double the "as is" replacement cost as of the effective date of the policy. Therefore, my 1,800 sf home, which can be rebuilt from the slab upward, based upon the Marshall Swift Cost guidelines would be $70 -$80/sf versus the insurance company projected replacement cost of $140/sf for above slab improvements.
Is this allowable? If my home is destroyed by a fire, it could be rebuilt for approximately $140,000 according to current cost data from Marshall and Swift, though according to the insurance company (Sunshine State Insurance company). I must have a limit of liability in the amount of $260,000. Sunshine State Insurance company refuses to allow me to lower my limit of liability.
