August 31, 2011

Storms Major Reason for Homeowner’s Insurance Rate Increases

If you haven’t reviewed your homeowner’s insurance lately, now is the time to do so.  Most of the insurance carriers have filed requests with the State Insurance Department to raise rates.  Storm activity that affected our communities over the past couple of years is the primary reason that many carriers are requesting rate increases.  Since 2010, some carriers have already raised their rates as much as 35% and may be requesting more.

If you don’t escrow your insurance with your mortgage payment, you have probably compared what you have been paying over the past couple of years and have seen some increase.  If you do escrow your insurance, you may not have noticed an increase in insurance, only a slight increase in your mortgage payment.  Just because you escrow your insurance, it doesn’t mean you have to continue to pay higher insurance premiums.  Though you may not have the option to change the value on your dwelling, you do have control over your carrier and deductibles.  If you aren’t willing to accept the increase, now is the time to make some changes.

I have listed a few tips below that you can do to save money on your homeowner’s insurance.

  1. Review your policy limits and deductibles-Have things changed since you last reviewed your coverage?  Have you sold something you had on a schedule and forgot to remove it?  Is your deductible too low (under $1,000)?  These are things that need to be reviewed from time to time.  If you have a deductible under $1,000, you may be missing the boat on some premium savings.
  2. Place your home and auto with the same carrier-you are seeing many commercials on television today showing discounts up to a certain percentage if you bundle everything with the same carrier.  This is true.  You can save money by placing at least your home and auto together.  If you purchase life insurance from the same carrier, you can usually get an additional discount.
  3. Shop your coverage with another carrier-If you have reviewed your homeowner’s policy, have your home and auto insurance with the same carrier, you are getting all of the discounts you are allowed, and you are still not happy with the pricing, it is time to shop your coverage.

Consider these tips when you receive your next renewal from your home insurance carrier.  You may be able to save some money by just making a couple of simple changes.

If you would like a no obligation home and auto quote, please contact us today.

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