Am I being taken for a ride with my home insurance?
As we reevaluate our expenses due to tightening finances, I’ve noticed that we’re currently paying $3,500 per year for home insurance with a $10,500 deductible. We purchased our home in Northern Arkansas three years ago, and our dwelling coverage was set at $475,000 then. We’re seeking quotes from other providers, but won’t receive any updates until Friday. In the meantime, I’d like to know if our current premium is reasonable or excessively high. Any insights would be appreciated!
It sounds like you’re taking a smart approach by shopping around for different rates. Home insurance costs can vary widely based on several factors, including coverage limits, location, and the specifics of your property.
In Northern Arkansas, a yearly premium of $3,500 might be on the higher side, especially with a $10,500 deductible. Here are a few things to consider:
Coverage Amount: Depending on your home’s value and local building costs, $475k in dwelling coverage might be necessary, but it’s worth reviewing to ensure you’re not over-insured or under-insured.
Deductible: A $10,500 deductible is quite high. Generally, homeowners choose a deductible they’re comfortable paying out-of-pocket in the event of a claim. If you can afford to raise your deductible slightly, it may lower your premium.
Comparative Rates: When you receive quotes from other providers, make sure to compare them based not just on price, but also on coverage details, additional endorsements, and customer service reviews.
Discounts: Inquire about any discounts that may apply to you, such as bundling home and auto insurance, loyalty discounts, or claims-free discounts.
Review Policy: Take a close look at your policy to see if there are any coverages you don’t need or if you’re paying for extras that aren’t relevant to your situation.
Overall, it’s great that you’re being proactive in evaluating your insurance situation. Getting a few quotes should help you get a clearer picture of whether your current premium is reasonable or if there are better options available. Good luck!