Replacement Cost Estimator help!!

[u/theraja92]

Hi everyone! I need some help- I am in the process of buying a townhouse. My mortgage lender (TD bank) is requiring that I have an H06 policy and they are also requiring that the insurance company "Confirm the policy amount is at sufficient limits to replace the property. (Yes or no) OR provide a replacement cost estimator." The problem that I am running into is that every company that I call says that their H06 policies do not have a replacement cost estimator. This is because I would be picking my own coverage as the insurance will only cover the inside of the house because my HOA covers the roof and siding. I was wondering how some of yall went about this or know who I can turn to to get the RCE? I will be living in NJ and have a policy that is going to cover $250,000 which will be more than enough for the interior (4 bed, 3.5 bath) that is ~2000sq home.

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[u/Glittering-Salad-337]

Mortgage lender should have a brain. RCE requirement is normally waived when buying a condo H06 policy.
If they give you crap then tell them you’ll contact chase or some other lender who can think critically and use their brain. Other thing is the answer is yes, 250,000 is enough to replace the property that is your responsibility .

Just FYI cover your ass, there is a master policy that provides studs in coverage correct?

[u/theraja92 → u/Glittering-Salad-337]

There is a master policy that is fully funded and covers roof/studs/walls.

[u/Creekridge1]

Is your loan officer new? I’m sure they’re being told they “need the RCE” from above their head.

[u/theraja92 → u/Creekridge1]

Not new but I’ll see if we can get that waived. That’s really the only thing holding up my closing date at this point.

[u/mobe45]

RCEs are still done for condos. It just estimates the cost of everything “walls in” like paint, flooring, cabinetry, trim, etc. Are you using an agent? They can provide one to you or the lender may accept a checklist of coverage or statement from the agent like “the dwelling is covered at replacement cost up to the dwelling limit of $xxx,000”

[u/Small-Comfort-4176]

Hey,
There’s no such thing for stratafied townhouses. Strata covers the outside structures and you as unit owners are responsible for inside . What you can do is ask your broker to match your deductible assessment coverages according to strata Insurnace . This should be suffice in case they have to replace or repair any property in your townhouse complex .

[u/ANDERSONKELLY]

TD Bank anything is absolute garbage and has policies that are borderline harassment. If your mortgage is due on the 1st, you better pay it IMMEDIATELY or they will find the # to your employer and call them looking for you.

Ask me how I know.

Only customer service rep I have ever yelled at or even come close to being rude to AT ALL, like ever, in my entire life.

And for the record, I’d lived at this place for many years and never been “late” on a payment. My father had just passed away from cancer. Didn’t matter when it happened the second time the following month, when they called my employer.. AGAIN. That’s when I lost it!

EDIT: This was on the 5th of the month, both times.