Cost of Homeowners Insurance
Homeowners insurance can be costly, but it is necessary and the premium charged can vary widely from company to company. The cost of homeowners insurance depends on a number of factors including location, age of dwelling, local fire protection, choice of deductibles, application of discounts, and the amount of insurance coverage that you purchase.

Changing Your Deductible
If your policy contains a standard “all peril” deductible, you would collect the amount of any covered property minus your deductible. In choosing the deductible amount, you bear the burden of loss up to the amount you feel you can afford. Deductibles save money because the first dollars of the insurance are the most expensive to buy. The higher your deductible, the lower your annual premium will be.

Discount Opportunities
You should ask your American Home Insurance Marketing Consultant about discounts that might be available for the use of dead bolt locks, smoke alarms, fire extinguishers, sprinkler systems and security systems.

Check with your American Home Insurance Marketing Consultant to find out what additional discounts are available to you under your policy.

Actual Cash Value vs. Replacement Cost
One important factor to consider when shopping for homeowners insurance is “actual cash value” vs. “replacement cost” coverage. While it may not affect your short-term premiums, it may make a large difference in your claim submission.

Actual cash value coverage, as the name implies, will reimburse you for the cost of the property at the time of the claim, minus the deductible. It is important to account for depreciation when considering this coverage option. For example, if you have a loss on an audio system that was purchased five years before the claim, you will be reimbursed for the current value of the system. This could result in a lower claim payment than you expect.

Replacement cost coverage, on the other hand, will reimburse the full value of the audio system after you purchase the new system and submit your receipts. While the up-front cost might be greater, you are more likely to receive adequate compensation for your possessions.