Saving money on homeowners insurance can be a complicated process. However, you can save a sizable amount of money by following a few relatively simple tips. One of the most common mistakes that people make is basing the level of coverage on the appraised value of the home. Appraisals include the value of the land the home is sitting on. Unless your home is situated on land that could be eroded or otherwise become unusable, the less expensive alternative is to use local per-square-foot replacement costs in addition to the costs of the possessions inside the home. Just make sure that your policy covers every possible catastrophe in your area, particularly if you live in an area prone to flooding.
Another area where money can be saved is the deductible. Raising the deductible lowers your insurance premiums but be careful that you don’t create a deductible so high that you can’t afford to pay it in the event of disaster. Many insurance companies are now using percentages of insured value rather than specific dollar amounts, so be sure to calculate the dollar amount to avoid problems later on. When you renew your policy each year, make sure that your rates did not go up significantly. If they did, call your insurance company and ask why. You may want to start shopping around for a better rate on a similar policy.
Hilton Head Island is a wonderful place to visit…and is truly an amazing place to live. Contact me, Jacque Johnson at 843-816-2483 or email me and let me use my Hilton Head real estate experience as a South Carolina licensed real estate Broker to help you make Hilton Head your home.
Original Content By SMITH LIVING...™
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