Four tips to curb rising homeowners’ insurance

Homeowners’ insurance premiums have been on the rise lately with many owners seeing double-digit hikes and a rise in average annual premiums now over $1,000. Consumers may be able to curb their insurance costs by spending some time shopping and researching.

A recent article at Money Magazine offers the following tips:

Base your coverage on the right number. Base your coverage level on homeowners’ insurance on the recent per-square-foot replacement costs in your area, not on the home’s appraised value, notes Kevin McCarty, president of the National Association of Insurance Commissioners.

Evaluate the deductible. Most experts will advise homeowners to go for the highest deductible they can afford in order to lower their premiums. But be sure to note that “many insurers are retooling deductibles from set dollar amounts to percentages, which can often represent a substantial change,” Money Magazine notes.

Question the rise. “If your rates rose 5 percent or more [in the last year], make sure to call the company for an explanation,” the Money Magazine article notes. “Knowing whether the increase resulted from changes in your risk profile or from broad-based increases in the marketplace will help you negotiate and comparison-shop – which you should do at every renewal or at least every couple of years.”

Bundle it up. For example, bundling your home and auto insurance with the same insurance company could possibly save you up to 15 percent. Insurers often will also give you a discount if you install a security system to your home, storm shutters, or a new roof too.