Homeowners Insurance: Tips for Reducing Your Premium

With prices for just about everything fluctuating (mostly in the upward direction) lately, people everywhere are looking to save money where ever they can. A good place to start is with your homeowner's insurance policy.

In spite of our economy, home values have increased over the past 5-15 years. Many people have failed to determine if their current insurance coverage would be adequate to replace their homes. Your policy should allow you to completely rebuild your home should a disaster occur. If not, get your policy updated to match your current property values.

To save money on your homeowner's insurance policy, follow these tips:

• Determine the limits you want on your homeowners insurance, what value you need to insure, get multiple quotes.
• Consider purchasing your homeowner, auto and umbrella insurance with the same company so a multi-coverage discount will apply.
• Having smoke, burglar alarms and a sprinkler system could mean bigger discounts.
• Get a quote for insurance that would pay to replace your belongings, rather than pay you based on their depreciated value.
• Ask your agent what documentation you need to substantiate a claim, in case of theft or fire. Make sure you videotape all of you personal properties including what is in the drawers and cabinets and send the tape to someone you trust for safekeeping.
• Make sure you carry enough liability coverage to protect you against a lawsuit if someone gets slips, trips or gets hurt on your property.

If you haven't reviewed your homeowner's insurance policy lately, now might be a wise time to do that, especially to make sure you are adequately covered in case of an unexpected disaster, like fire, tornado's, hurricanes, earthquakes, etc.

Green Homeowner's Insurance?

Fireman’s Fund Insurance Company – the nation’s first provider of green insurance for commercial buildings – will launch green insurance for homeowners starting this summer.

This is the first-ever admitted green insurance available to homeowners in the United States. Setting a new standard, Fireman’s Fund is offering this innovative product to homeowners who currently own green homes or who want to upgrade their residences with green features after a loss using environmental safety and efficiency standards. If a home is completely destroyed, it can be rebuilt to green standards, certified as having Leadership in Environmental and Energy Design status.

Homeowners whose residences are already green will be offered a five percent discount on this coverage, applied to the homeowner premium.

With this new coverage, homeowners will be able to rebuild and replace with green alternatives such as:

• Energy Star®-rated appliances, lighting, electronic equipment and roofing/insulation
• An Energy Star upgrade of heating, ventilation and air-conditioning systems
• Forest Stewardship Council certified wood for millwork, ceilings, siding and framing, including bamboo flooring
• Non-toxic, low odor paints and carpeting
• Water-saving plumbing fixtures
• Elimination of ozone-depleting refrigerants and fire extinguishing agents, replaced with environmentally friendly alternatives
• Debris removed after damage to a home will be recycled and diverted from landfill

The green homeowners insurance is now approved for homeowners in 26 states (Arizona, District of Columbia, Delaware, Georgia, Hawaii, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maine, Michigan, Missouri, Nebraska, New Jersey, Nevada, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Virginia, Washington, Wisconsin and Wyoming), with most other states expected to offer the coverage by year-end. The Coverage will be available in California as part of the Prestige® Home Premier Policy on August 1st.

Is Anywhere Totally Safe from Disasters?

This is a question worth answering no matter where you live. People in some parts of the country are highly susceptible to hurricanes, while others face virtually no risk from them. Some live with the risk of earthquakes, others do not.

Recent flooding that swamped parts of the Midwest, including Indiana, Wisconsin and Iowa, caught many property owners unprotected. Only 1 percent of all Indiana homeowners have flood insurance. Wisconsin reports even less than that. People generally pass on federally backed flood coverage because they don't realize it falls outside standard home insurance or they underestimate the risk.

Wisconsin Insurance Commissioner Sean Dilweg expects damages from flooding that passed through his state to top $100 million. But of the 2 million households statewide, only about 13,600 had flood insurance policies.

A lack of flood insurance isn't limited to the Midwest. The National Flood Insurance Program estimates that only half the property owners were insured when hurricanes Katrina and Rita tore up the Gulf Coast in 2005. The program paid $15 billion to those who did have coverage during what it deems the costliest storm season on record.

Being in the early stages of the 2008 Hurricane Season, and in the aftermath of the unusual flooding in the midwest, NOW might be a great time for EVERYONE to check their homeowner's coverage. After disaster strikes is too late.

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Homeowner's Insurance: Ways to Save Money

Insurance may be necessary, but it doesn't have to be expensive. Our money reporter Stacy Johnson is constantly giving us ways to save money. Today he explores how to do it when it comes to your homeowner's insurance. (Video runs 1:18)

If you have a comment or question about this video, or any other post you've read here at our blog, send us your comment by using the convenient "comment" link below. We'd love to hear from you.

Hurricane Season: Make Sure You're Covered

Hurricane season is upon us once more, which means greater potential for flooding and/or flood damage to your home.  It doesn’t matter where you live, flooding can occur almost anywhere.  If you live along the coast or near a body of water, particularly, protection against and preparation for this type of disaster is necessary to ensure your finances are protected.  Have you purchased flood insurance?

The Federal Emergency Management Agency (FEMA) reports that flooding is America’s #1 natural disaster.  From snow melts and flash flooding to tropical storms and dams that have reached capacity, the potential for flooding should always be considered, regardless of where your home is located.

With hurricane season here again, it's prime time to be considering flood insurance. 

Why should you purchase flood coverage?  Well, the important fact to be aware of is that homeowner’s insurance policies do not cover flood damage or ground water damage from heavy rain.  So, even if you’ve purchased a significant amount of homeowner’s insurance and your area experiences heavy flash flooding, damage to your dwelling will not be covered unless you have purchased flood insurance.

Check with your insurance agent now, don't wait for a storm to be approaching.  Most insurance companies will not amend or add to insurance policies once a named system is alive, and Federal flood insurance takes several weeks to process.