Okay, so should I go check on the price to insurance my house for three times it's value, and my cars for three times their value, and get three times as much life insurance as I really need? Oh I have a business too, should I insure everything in it for three times it's value too? Where exactly would the "good deal" end? I'm now in my 50's and have never made a claim on my MH or homeowners polices, and only small comprehensive claims on my car insurance, how good of a deal is it to pay for insurance you don't need?
If the replacement cost is three times than yes. All of my insurance policies are for more than the value of the item simple because the item is going to cost more to replace than the loan against it. If my only concern was insuring the loan the insurance company wouldn't even need to know what it was just how much it was.
I lean towards agreed value for this reason. I don't expect to get rich if a total loss occurs I just want enough to get back into something close to what I had.
