Cheap Home Insurance - A Few Tips To Save Money
Is there such a thing as cheap home insurance? There may be a
better question. Is home insurance really that expensive?
Homeowner's insurance may very well be the consumer's best buy
when it comes to insurance. There are multiple benefits and
features that make the home policy unique. Most everything that
the homeowner owns including the dwelling can be covered in some
way by homeowner's insurance. When you think of the magnitude of
the coverage afforded by homeowner's insurance versus the
premium paid then you would have to agree that homeowner's
insurance is a very good buy. The rates on property insurance in
general, have increased over the last ten years. Much of that
has to with increased catastrophes like the hurricanes in
Florida. The toxic mold problem that originated out west has
also caused premiums to increase on a national basis. The home
insurance buyer really needs to focus on a few areas to get the
most for the premium dollars paid.
Accurate Dwelling Amount - This is the first most critical
decision that you will make. The square footage of your dwelling
has to be correct in establishing the replacement value of your
home. The market value is of little use to you when you purchase
insurance to rebuild the structure. Replacement cost is better
for homes that have been built within the last 40 years. Check
with your insurance company underwriting guidelines.
Replacement Cost or Actual Cash Value - This facet of your home
insurance policy should be clearly understood. Replacement cost
insurance on both your dwelling and its contents means that the
insurance company will rebuild or replace your loss with like
kind and quality. Actual Cash Value will calculate the
replacement cost and then subtract for depreciation. The actual
cash value policy is cheaper but you will have to come up with
the depreciable amount out of your own pocket.
Deductible - Higher deductibles bring your premium down
substantially. $500 to $1000 deductibles are common. This is a
huge savings to you over the years and is your most valuable
tool in lowering the cost.