The Cost of Homeowner's Insurance

I currently have homeowner’s insurance with a company I have dealt with for over a decade. The annual premium if $1362.00. My coverage is for a single family dwelling with majority brick and a metal roof. I am outside of the city limits, but less than 5 miles from a fire station. I have no other high cost factors such as swimming pool, trampoline, aggressive dog, etc. The home’s livable square footage is 1665 square feet. My coverage is as follows: dwelling - $135,000; other structures – 6.750; personal property - $67,500; additional living - $13,500; personal liability - $100,000 per occurrence; medical - $1,000. My deductible is $1000. Damage by flooding is not covered.

While I am pleased with the service I receive from my agent, I am rather unhappy with my rates. I feel they are well above the national average for my value home and have increased substantially since my home was built 8 years ago. I am still with this company, however, because I feel my options are limited in a post-Katrina Mississippi environment. The number of companies who actually offer insurance in the state is limited. I have no review of the actual claim service as I have never used my homeowner’s insurance. I have had an auto claim with this company, however, and was very pleased with the way it was handled.

If you are in an area with ample competition I definitely advised shopping every few years. Also it is often best to have your home, auto and life insurances all with the same company as you may receive discounts. Keep abreast of your home’s value and make sure that your coverage is adequate for the actual cost you have to rebuild if you lost your home.