With trying economic times upon us, we are all looking to save money any way we can. Many have lost their jobs and are trying to figure out how to stay in their homes.
You may be looking at your homeowners policy right now or have just gotten a renewal quote and you are thinking " My home is not worth this much! I need less coverage since homes in my area are selling for half as much as they were when I bought."
While the housing market has dropped considerably, your insurance company is looking at what it would cost to rebuild your home. That rebuild cost includes removing the rubble of your damaged home, getting new permits, plans, state and local building fees, labor, materials and more.
Keep in mind that the other coverages under your policy such as personal property, additional living expenses, etc. are all percentages based on the dwelling coverage. Reducing the dwelling coverage reduces the other coverages also. You can reduce or eliminate some of the optional coverages. Maybe you no longer have a dog so you don't need animal liability coverage. Or you don't need $10,000 in water back up coverage, $5,000 would be enough. Id Theft coverage may be better or included through your credit card. Have you put in an alarm system? Most carriers give you a discount for having a monitored alarm system. Some also discount for your profession and marital status.
You can remove or modify these coverage with a written request or e-mail to your agent or insurance company. Talk to your agent. You may be able to switch to another carrier and save.
Check out this article from the La Times for more information. http://http//www.latimes.com/classified/realestate/news/la-fi-lew7-2009jun07,0,3514957.story