The Cost of Homeowner's Insurance

The premium of $420 includes $257,000 coverage on the dwelling, $162,000 coverage on personal property, $75,000 for loss of use, $300,000 personal liability coverage, and the minimum medical payment coverage allowed by law. There is a $1000 deductible and the premium reflects a $28 credit for an active security system protecting the house.

I shopped around online annd by talking to friends and the premium I am paying is reasonable and comparable to rates from other companies. I have been satisfied with the service and the price because the insurance company has made adjustments that are based on the decline in home values in my area and they have been responsive to all of my questions about the coverage. I have not had any claims but the representative on the phone when I purchased the policy was very helpful and asked questions to help me find the right policy limits and keep the cost at an affordable level. Also, they are available 24 hours a day to take calls and accept monthly payments.

The best tip that I was given and can pass along is to raise your deductible to a level that is higher but still manageable. It makes a big difference if you increase it from $250 or $500 to $1000 and, unlike auto coverage, it is generally unlikely that you will have a small claim on your homeowner's policy.