Save Money on Homeowner’s Insurance

This article deals with Home owner’s insurance. I have recently bought a house so this one “really hits close to home”, if you know what I mean:) GoodHouseKeeping had these easy ways.

Shop around While automobile insurance rates are expected to go down this year, homeowner policies will likely go up (by about 4 percent). So it pays to hunt for the best price. The same Web sites that quote car insurance rates will also give you the cost of online home insurance coverage.

Ask about discounts Many insurers cut rates by about 5 percent if the homeowner has burglar alarms, smoke detectors, or dead bolt locks. Some give breaks to older people and to families in which no one smokes.

Don’t over insure If you bought enough coverage to equal the price you paid for the house, you may have too much insurance. That’s because your purchase price included the cost of the land, but even if your house burns down, you don’t need to buy the land again. So shrink your policy to the right amount: what it would cost to rebuild your home. You can also cut costs by dropping coverage you bought for jewelry or other valuables that have decreased in value. But don’t under insure Building costs have soared in the past few years. If you haven’t increased the size of your policy, you may not be able to replace your house if you’re hit by a tragic fire, hurricane, or flood. Ask your agent how much coverage you need today. To hold down your cost, increase the deductible. If you offer to pay up to $1,000 out-of-pocket for a claim, instead of $250, you can save as much as 24 percent.

Choose your next home wisely It is lovely to live near the ocean, but that’s where insurance costs the most. In hurricane zones, average premiums will soar 20 to 100 percent this year, reports the Insurance Information Institute. And it’s going to get worse. Many insurers aren’t renewing policies for homes on the coasts. Florida now has “insurance refugees”–people who can’t afford coastal coverage and are moving inland to higher ground. No question about it: Ocean views are going to carry a heavy price.

Want the Best Deal? Price-Shop Online Use all or some of these Web sites to collect cost information on the kind of auto and homeowners insurance coverage you want. Then ask an insurance agent to beat the best rate you find.