Saving You Money For Life

If the fates have been unkind to you, you’re one of those homeowners who have watched housing values flatten at about the same time your adjustable rate mortgage payment made a pole vault into its adjusted market rate. A homeowners’ insurance policy can offer some financial flexibility that can help offset the increase. One of the things you can do is ask for a quote from your auto insurance company for the policy on the house. You may be eligible to receive discounts of up to 15% off your premium for buying both products.

Increasing the deductible by just a few hundred dollars can make a significant difference in the cost of the premium. Most deductibles for homeowner’s insurance start at $250; if you raise your deductible from that to $1,000 you may save nearly 25% on your premium. There are also dozens of homeowner’s insurance discounts that go unrecognized by many consumers. Your insurance agent may not bring them to your attention – you may have to dig through the underwriter’s fine print. But though they seem ordinary, you may be able get a lower premium if your home has safety features such as dead-bolt locks, an alarm system, storm shutters or fire retardant roofing material.

Home owners should not overreact to a drop in housing prices and automatically change their homeowner’s insurance coverage. Instead, homeowners insurance policies should be evaluated as a whole, taking into consideration the cost of rebuilding the structure as well as replacing possessions.

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