I often wonder about this.
My insurer, I believe, determines - based on size, location etc the replacement value.
It goes up…it’s much less than my home is worth - but it goes up.
What’s it really cost to replace a home? I have no idea. but I sort of have to trust them.
But on my roof which has a 2% deductible (not $1K like the home) - 2% of a higher amount is - well - doesn’t give me much roof coverage.
My understanding is that you want to insure for rebuild costs. In some cases, that can be surprisingly highhttps://www.9news.com/article/news/local/wildfire/marshall-fire/marshall-fire-victims-afford-to-rebuild-homes/73-bcddf049-d552-4a60-a161-8d99ea795a1b
My experience as well.
When I was growing up my parents had an agent wo was very helpful and in the rare instances when they had a claim he actually came to our house to help them fill out the form.
So after college I had my own policies in a different town. My car was hit and so I called my agent asking what to do, naively expecting advice. In the most condescending tone he could summon he asked “what do you want me to do, hold your hand?”
That’s really called a ‘captive agent’. Independent agents can rep more than one company.
But the point is that a captive agent can only sell one company, such as State Farm. OTOH, you cannot get a quote from SF from any non SF agent. So, it can pay to shop around.
@oldfort Agreed, but we also have the condition where they could not replace our existing house at the same quality level, with the same quality materials, for the price it would sell, so it is tough to determine a true value.
We used an insurance agent. Our car insurance was very high. Started shopping around when our son was a college senior and found out we could have gotten a discount for the past three years since he attended a college more than 100 mikes away. Wish the agent told us that 3 years earlier!
To everyone out there b4 u make a call you might find a good insurance article that labels all possible discounts or do a search tailored to your situation. That way you have some knowledge b4 calling and you can ask about specific discounts.
Like any business, the quality of the help you’re getting differs.
And no one wants less commission 
Would not be surprised if poor experiences with claims were more likely when claiming against someone else’s insurance than against your insurance.
The rebuild cost of a house or other building is often less than the market value of the property. But it can also be more.
A house insurance policy should be written based on the estimated cost to rebuild, not market value.
I live in CA, which limits my available insurance carriers. I’ve reviewed the options that are available, and determined what I feel is the best choice for me, balancing desired coverage and cost. I usually select a high/max deductible, with much reduced premium costs. I get insurance to cover large claims, which will far exceed a high deductible. I have no issue with paying small claims out of pocket and coordinating small repairs myself.
An exception may occur, if I have reason to believe I am at higher risk of a claim than their model predicts, in which case I might choose lower deductible and/or extra insurance options. This can be limited to specific aspects of insurance or specific time periods. For example, I might add on insurance options or change deductible prior to a road trip vacation, then remove after the vacation is over.
I have checked with insurance agents multiple times, but have never found an insurance agent that could find better options than I could myself. I also prefer having more personal control of available options, rather than have someone else limit or pre-select my options.
More recently, my home insurance rates have shot up. This relates to a combination of home insurance carriers leaving the state limiting competition, home value increasing by >50% post-COVID, and home rebuilding costs increasing dramatically post-COVID. However, my auto insurance has had a notable decrease. This largely relates to calling in and requesting a decrease because I started working from home and driving less. I need to send a signed odometer statement each year to get the discount.
But collision centers (the one we used who said add two weeks bcuz it’s State Farm) and dealers I call on universally hate them, some of which won’t take their business, seem to think they are just no bueno.
But again others here say good things.
Exactly. Plus a fudge factor for disaster pricing. When a disaster hits, the local price of labor, lumber and everything else skyrockets for a time. And if your insurance doesn’t cover that (ahem) transitory inflation, your rebuild will be back of the line.
That may be true, but my insurers have always let me adjust the amount up or down on my homeowners insurance replacement amount.
Yes - I can do that as well - but if they say it’s $700K to replace my home and it burns down and I had lowered it to $500K and it really is $700K…then what’s the point?
I have no doubt that their algorithm isn’t perfect (nor would my estimate be) - but they have one, I don’t.
I do know things have gone way up in price due to both labor and parts shortages.
So I have no reason to doubt or question the policy updates.
Huh, our auto body shop said they like working with State Farm. 
Same on almost all accounts. We basically self-insure but have coverage for (1) harm caused by others and (2) catastrophic loss.
DH and I have been together 21 years. In that time, we’ve made two auto claims, both times when we were rear ended by someone with State Farm. We made the claims through State Farm.
Have never made our own car or home owner’s claim. I know our homeowner’s deductible is $6k. Honestly, I wish I could have a higher one.
Assuming they are not a dealer or certified by the OEM collision center.
it’s all I’d use.
Statefarm has their network of independent shops - and therein lies the rub.
They have different payment rates than the manufacturer OEMs dictate - no different than service.
Today dealers are $200-500 an hour depending where you live. Independents less.
I’m a service it at the dealer only person.
Some people are. If you lease, have a car under warranty or extended warranty, have a demo because you work for a dealership or whatever…or because you actually like your service department.
In the case of collision, some places get OEM parts. Some don’t.
The insurer (State Farm) will warrant their parts.
But that means little, especially when you turn in a lease (if you have one) and get dinged.
I’d personally want someone who focuses on one brand vs. many.
But as I said earlier - with insurance, different folks have different experiences and preferences.
So it’s to be expected to see opposite thoughts/ opinions.
btw - extended warranties - that’s the point for the OEM - even if they lose money on the ELW, when you’re in - you’re also buying customer pay - wipers, fluids, and other things.
The OEMs want you in the dealer, not elsewhere - and that’s why they push extended warranties so hard. The dealers make money on them - but not necessarily the OEM.
Dealers make the bulk of their profits from service and then used. Little, relative, on new cars.
There’s a metric called fixed absorption - it’s basically the entirety of a dealer’s expense (for the overall operation), what % is service covering. A good store is North of 100%…so covering the entire dealership plus some profit too.
So service is king.
But many are price gouging relative to others - so people do seek independents.
Your best dealers will have menu pricing - meaning, a Service A costs this, a Service B costs that.
Many price individual items and don’t offer up front pricing - until you come in.
Many flavors of business - but yes if you are under warranty you are more likely to go in store vs. a private shop.
We have had USAA for over 50 years. I love them. They may be a bit more than some of the other companies, but we have never had a problem with the few claims that we have had. We don’t have a broker, we just call them. They are wonderful.