Friday, April 9, 2010

It's Time to Review Your Homeowners Insurance!

How To Save A Bundle On
Homeowners Insurance!

Mounting claims from natural disasters have caused a colossal jump in the cost of homeowners insurance. With wildfires, hurricanes, tornadoes, earthquakes and mold taking a toll on property, homeowners’ insurance claims skyrocketed resulting in significant price hikes for consumers.

Over 51 million households saw price increases between 2001 and 2003, according to a study by the Independent Insurance Agents and Brokers Association of America. Here’s some important advice to help you reduce the cost of your homeowners insurance:

1. Raise Your Deductible. You can significantly reduce the cost of your homeowners insurance by raising your deductible to at least $1,000.
2. Keep Your Home In Good Condition. Make sure that your roof is in good shape. Fix any minor leaks or problems. Make sure the heating, plumbing and electrical systems are in good condition. Also, make sure to repair any drainage problems around your home.
3. Keep Your Credit Score High. Insurance companies use credit insurance scoring to determine who to insure and for how much. Your score depends on your credit report score and your claims history. To improve your credit score pay down your debt, close credit cards, and correct any credit report errors.
4. Avoid Filing Unnecessary Claims. Filing several small claims can result in rate increases and in some cases even being dropped by your insurance carrier.
5. Comparison Shop. Look for an insurer that has a good claims record. Every few years compare your policy with other reputable insurers. You may find a better value. Always buy a policy that pays the true replacement value for any loss.
6. Keep Your Policy Up-To-Date. Review your coverage each year. Make changes to the policy, if, for example, you increased the value of home (remodeling or building an addition). Conversely, reduce coverage for items that may have depreciated.

1 comment:

Miguel said...

It is always good that you review your Florida homeowners insurance once in every two or three years. You can keep updated about the present prices that are running in the market and you can always shift to another insurance company or a different insurance policy.