State Farm and Farmers to Raise Homeowners Insurance Rates
Although both these companies are expected to cover the claims from our recent Southern California Wildfires, insurers have been relying on rate hikes to keep up their profits during this tough economy. At a time where homeowners need to keep costs down, these two large insurers of California homes have been approved to increase their premiums by about $115 million.  In a report by Market Watch, it’s estimated that State Farm and Farmer’s policyholder’s could face an average increase of 6.9% and 4.1% respectively. Realistically speaking, this means affected homeowners can expect to see an increase of around $50 per year on their insurance policies.

Help for Consumers and Homeowners in California
Consumers have found ways to fight back, but unfortunately, the requests to petition this most recent rate hike were rejected by California Insurance Commissioner Steve Poizner. For those of you that are interested, Consumer Watchdog has been the non-profit and non-partisan organization helping consumers fight back.

In the meantime, keep in mind that your mortgage isn’t the only housing expense you can minimize. Here are 5 ways you can save money by lowering your home insurance costs:

1. Raise Your Deductible. If you can afford it, raising your deductible from the typical $500 could significantly reduce your annual premiums.
2. All in One Package. Check to see if you can combine your home’s insurance with your auto insurance policy. Combining the two could mean discounts on both annual premiums.
3. Protect Your Own Home. Stay up to date and install smoke detectors, alarm systems, window locks, and door security systems. You’ll be less of a risk to insurance companies, and you could qualify for a discount
4. Review Your Policy. Find out if you’re paying for coverage you don’t need. Also consider that some items may have depreciated in value and may not need as much coverage as you originally thought.
5. Shop Around. Check out reviews of insurance companies, and see if anyone you know can give you a solid referral. Don’t forget that finding the best insurer is more than just money itself. You’ll want to find a company that delivers great service and coverage, all at a price that you can afford.

Don’t neglect the costs of homeowner’s insurance.

You won’t see your homeowner’s insurance bills as often as you see your monthly mortgage statements, but it’s still one of the significant expenses of owning a home. Considering the current economy and the actions that these home insurers are resorting to, now would be a good time to see if you could possibly save some money by minimizing these insurance costs.

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