posted on 01 Mar 2012 09:06 by insuranceoptions directory Knowledge
The Average Cost of Home Owner's Insurance
If you only pay for homeowners insurance and the rate of increase, you are not alone.
Insurance Agents, veterans remember when rates of home owner insurance in many states there are only a few hundred dollars a year. It is also not uncommon for rates to stay the course in the same year after year. Unfortunately, times have changed.
If one considers the number of tornadoes, wind storms, extreme weather events caused by fire, etc. that will occur in the vicinity of the last five years, it is not difficult to understand why there is pressure on the rate of home ownership. insurance will increase.
If the houses were damaged by high winds or a tornado, and replace the roof or wall, the insurance pays homeowners usually for damages.
The problem is easier to understand, after doing the math, if 100 new features of the affection and the hail damage to roof replacement. (I have not seen the damage to the wall) and the average cost of a roof is $ 30,000 the total amount paid for the participants will be made only $ 3,000,000.
In this simplified example does not take into account that the large hail or tornadoes that damaged more than 100 homes and damaging to the average may be higher than $ 30,000, but total losses were limited by these factors continued. The annual prize of $ 2000 from 1500 a landlord to cover the loss of a disaster.
Insurance companies will struggle to break even and get a return on their investment. When power is constantly increasing, construction and labor costs are a factor in the conclusion of insurance companies is inevitable. Insurance rates homeowners have increased.
Insurance companies that do more than simply increase. In some cases, the cover will be reduced significantly. Another trend is for the insurer to adopt the change. (Actual cash value) ACV on the roof if the roof is more than 10 years.
In other words, the loss of the roof to adjust the ACV will look like the following:.
Suppose the following: the roof over 20 years of life (remember that life must be used), 12 - The roof and the cost of replacing the roof of the $ 30 000 loss of the ACV adjustment is as follows: (. The roof is 8 years remaining divided by the normal life of 20) x (the replacement of the roof) the amount needed to replace the roof - or $ 12,000 (8/20 x 12 = $ $ 30K) K in this example is. loss of $ 30,000 to $ 12,000 insurance policy to recover from the landlord.
Another trend is the introduction of deductibles for wind / hail between 1% and 5% of the insured value of property taken. For example, if the house is insured for $ 450,000 with the wind / hail deductible of $ 3% deduction for the loss of wind / hail covered will be $ 13,500.
As insurance consumers, homeowners, your insurance choice you make will be connected to more than pocket money. But since you must make these choices, here are some things you can do.
1) Make sure you make a policy of insurance higher deductible will influence rates. In order to maintain insurance rates in the higher deductible may be necessary to implement.
2) When you hire a contractor for loss of reputation. I do not think that the first minimum or maximum amount that can claim to be the best. And do not use the loss as an excuse to replace the old roof or fitting. This is just the problem of rising insurance rates.
3) Be careful if your insurance agent soliciting business by offering lower rates significantly, what you are currently paying. With at least one or two agents who made the comparison.Make sure that they have been saying for at least three or four insurance companies that the rate quoted renewal rate is higher or lower than offered by current policy to ensure that you understand the reasons for the difference.
4) Be sure that your insurance agent to explain how the deductibles on your policy will operate in a different kind of loss. As a consumer of insurance, you will need to clearly understand how your policy to determine if the loss occurs.
As a homeowner, you may soon be required to pay more for your homeowners insurance.Although the rate of increase can not be avoided by following these tips, you put in a position to have the best coverage for your insurance dollar you spend. If you want to be a smart consumer decisions about insurance, repairs, insurance claims, deductibles, and insurance coverage is ultimately decided to trust.