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Homeowner Insurance |

cost of homeowner insurance in california

While California is known for having the most expensive homeowner’s insurance rate in the country, this can be easily explained by the fact that California does have some of the highest prices in real estate and housing. This is also pertinent to another well-known truth that California sits on an earthquake belt, making it necessary for all homeowners to include the earthquake insurance in the policy. By adding this policy, you indeed increase the rate of your premium.

The good news is there are a number of ways to cut the cost on your California homeowner’s insurance policy, reducing your bill to as much as 30%. This could mean great savings for you in the advent of a crisis in the country’s economy. Stashing aside some extra cash is, by all means, a worthwhile endeavour. The following tips are recommended:

1. Check for appropriate insurance amounts. One of the biggest mistakes that homeowners make is insuring their home for a price that exceeds the coverage they actually need for their home. Why spend for more than what is required? Essentially, all you need is the amount you are most likely to use in case of destruction, when you rebuild your home from the ground up. Some people mistakenly include the value of land. Some compute the insurance amount based on the market value of their home. What you actually need is an evaluation of the estimated cost to rebuild your home in case of total destruction.

2. Save by installing a Security Alarm System. Most insurance companies in California allow for discounts when they learn and verify that your home is protected by a security system. Theft and intruder alarms as well as fire and smoke detectors should all be integrated into the central electrical system of your home. Most likely, these alarms can automatically send signals to a 24-hour monitoring system for fast dispatch of police and emergency response units.

3. Increase your deductible amount to save on monthly premiums. Insurance companies require a minimum of $500 deductible amount for a California homeowner’s insurance policy. As a result of this minimum requirement, homeowners do not even bother with computations of monthly premiums. They just accept the suggested amount without realizing that by increasing the deductible amount, they will be able to save on the monthly premiums.

4. Buy all insurance from one and the same insurance company. Large insurance companies give big discounts for customer patronage and loyalty. If you get all your insurance needs such as auto and home insurance from the same company, you will be sure to get a discount on your rates. Insurance companies do appreciate this gesture and will be happy to give back a nice prize in the form of price cuts for being a loyal customer.

5. Compare prices online. The internet is by far, the best resource for price comparison. The information that you can glean from online shopping remains unsurpassed. It is wise to make use of this resource, and determine the best homeowner’s insurance rates simply by online comparison shopping. Purchasing the least expensive homeowner’s insurance online can also be beneficial because these companies do not add on administrative and operating expenses usually associated with traditional companies.

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