deductible – Homeowners Insurance Tips and News Fri, 28 Jun 2013 15:01:02 +0000 en-US hourly 1 Should You Blow Your Cash on Earthquake Insurance? Fri, 28 May 2010 15:18:28 +0000 Everybody knows that homeowners insurance is a worthwhile investment. If you have a home loan, you’re required to carry homeowners insurance by the lender. But, even if you own your home outright, you need to be covered in case disaster strikes.

Now, when you think about disaster striking your home, you probably think about a tree falling and smashing your roof, or some other such disaster. You might think about earthquakes – which aren’t covered under your normal homeowners insurance policy. You probably don’t think about the most common types of homeowners insurance policy claims – liability claims and theft. Those two things, if nothing else, are the reason you need to be covered.

But, do you really need the other stuff? Let’s say you live in California. Do you need to have earthquake insurance?

Some people say “No.”  They argue that earthquakes are so rare as to not really be a concern. In some places in California, of course, that’s pretty true. In other places that are especially prone to quakes, it may not be true.

One of the big factors in earthquake insurance is the deductible. If you have a deductible of $1,000, for example, even an earthquake-prone area might not require earthquake insurance. Unless the quake is big enough to cause structural damage, the fact of the matter is that the insurance isn’t going to replace a single cracked window or a broken vase.

Currently, less than one in five homeowners in California have earthquake insurance. You might want the peace of mind that comes from having it, and if you have the cash to spare then it’s probably just fine. But for most folks, it probably isn’t a necessity.

Now, if you decide not to invest in earthquake insurance because of reading this blog, understand something: we’re not saying your house won’t be hit by an earthquake, or that you shouldn’t buy it. We’re just saying that it’s an individual decision that you need to make for yourself.

Photo via U.S. Geological Survey

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How to Find the Best Deal on your Homeowners Insurance Policy Wed, 16 Sep 2009 10:56:18 +0000 stack

The cost of homeowner’s insurance, just like any other type of insurance, can vary widely from one company to the next, and from one circumstance to the next. It is, therefore, in your best interest to shop around for the best rate on your homeowner’s insurance policy, as well as to learn the many ways in which you can save on your monthly premiums.

  • Shop Around for the Best Deal – Take the time to research all of the homeowner’s insurance companies in your area, and ask friends and family for referrals. In addition, you can contact the National Association of Insurance Commissioners (NAIC), who can help you locate a homeowner’s insurance company in your state. The NAIC can also provide you with the average rates of different homeowner’s insurance companies in your state so that you can save time researching this information for yourself.
  • Consider Raising your Deductible – Often times, the easiest way to decrease your monthly premium is to simply raise the deductible on your homeowner’s insurance policy. In other words, if you currently have a deductible of $500, consider raising it to $1,000 – doing so could save you as much as 25 percent on your monthly premiums!
  • Combine and Save – Many insurance companies will offer their customers deep discounts if they purchase two or more policies.  It pays to ask your auto insurer if they also carry homeowner’s insurance, as this could save you a considerable amount of money each month.
  • Step up your Home’s Security – Did you know that your homeowner’s insurance company can offer you discounts on your homeowner’s insurance if you install deadbolts or secure your home with a burglar alarm? You can really save money if you have more advanced forms of protection, such as sprinkler systems or alarm systems that are connected to emergency services.
  • Stick with your Current Insurer – Many homeowners’ insurance companies offer their loyal customers nice discounts. If you have been with an insurer for an extended period, make sure to ask them for a discount because of your loyal policyholder status.
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