| Buying homeowners insurance is not easy. The | | | | I recommend that you increase your liability limits |
| process of buying homeowners insurance can be | | | | significantly above the minimum. Jury awards on |
| frustrating, complicated and confusing. Sometimes, | | | | liability claims can run into the hundreds of |
| it's difficult to accurately compare rates, since | | | | thousands of dollars. A minimum liability limit will |
| coverage isn't usually identical from insurance | | | | leave you dangerously under-protected. |
| company to insurance company. | | | | 8. Additional Living Expense (ALE) Limits. ALE is |
| However, to help you understand the factors that | | | | usually 20% of the Dwelling limit. So, increase the |
| insurance companies use to determine your | | | | ALE limit if you feel it is too low for your needs. |
| homeowners insurance rate, I've listed the Top | | | | It usually is. |
| Ten factors that affect your homeowners | | | | 9. Deductibles. The deductibles you choose will |
| insurance rates. | | | | have a significant affect on your insurance rates. |
| 1. Geography. The further your house is from a | | | | Generally, the higher your deductible, the lower |
| fire station, the higher your premium will be. So, | | | | your rate. Always choose the highest deductible |
| homes in cities, where fire stations are closeby, | | | | your budget will allow. Then, set aside one |
| will have lower rates than homes in rural areas. | | | | deductible in your savings account to take the |
| 2. Construction. Homes built of non-flammable | | | | financial pressure off your deductible choice. |
| materials, like brick, stone and concrete, have | | | | 10. Claims History. If your home is free of |
| lower rates than homes built of flammable | | | | previous insurance claims, you'll get the best |
| materials like wood. | | | | insurance rates. If you have had previous |
| 3. Age. The age of a home probably has less | | | | insurance claims, the insurance company will |
| affect on rates than any of the other factors. | | | | consider those claims when they calculate your |
| Some older homes are extremely well built, and | | | | premium rate. |
| some newer homes are quite cheaply built. More | | | | A change in any of these Top Ten factors can |
| important is... | | | | cause a change in your homeowners insurance |
| 4. Value. When you calculate the value of your | | | | premium. Make sure that you fully disclose the |
| home, leave out the value of your land. Only | | | | correct information about each of these factors |
| consider the replacement cost of the dwelling at | | | | to your agent. That way, you'll be most certain to |
| today's prices. | | | | get the lowest homeowners insurance rates you |
| 5. Occupancy. A single family home will have lower | | | | can. |
| costs than a duplex. But if you operate a business | | | | If you have experienced an insured loss, whether |
| from your single family home, the premium will | | | | auto, business, fire, wind, flood or other, you need |
| increase. | | | | to know winning insurance claim strategies. The |
| 6. Contents. The value of your personal property | | | | insurance company will not tell you the claims |
| is usually calculated by the insurance company as | | | | process, but I will. I will show you how to take |
| 50% of the dwelling value. So, if your personal | | | | control of your insurance claim, and add hundreds |
| property has value in excess of that amount, you | | | | or even thousands more dollars to your claim |
| need to increase the policy limits on Contents. | | | | settlement. For more information, go to the |
| 7. Liability Limits. Homeowners Insurance is a | | | | website listed below. |
| package policy with a minimum liability limit built in. | | | | |