How can I save money on my homeowners insurance? Part 1

Posted by on Apr 26, 2011 | 0 comments

The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the size of your house and the insurance company you buy your policy from. Here is the first of several money saving tips to come:

Raise your deductible

A deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible, the more money you save on your premium. Consider a deductible of at least $500. If you can afford to raise it to $1,000, you may save as much as 25 percent.

If you live in a high risk area, your insurance policy may have a separate deductible for damage from hurricanes. If you live near the coast or in an area vulnerable to hurricanes, you might want to increase your hurricane/windstorm deductible to 5%, up from the traditional 2% deductible.

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