| What do you like the most about your home - | | | | example, I know how much I paid for my home, |
| the bright, sun-filled kitchen, the shiny wood floors | | | | and how much I could probably sell it for, but I |
| or the comfortable bedrooms? | | | | don't have a clue how much it would cost to |
| Or is it the fact that your home probably makes | | | | rebuild if it burned down. |
| up maybe the biggest part - of your total net | | | | The state Department of Banking and Insurance |
| worth? | | | | and the Insurance Council of New Jersey |
| Either way, you have to protect what you have, | | | | recommend that homeowners in this situation |
| using homeowner's insurance. | | | | should consult their insurer, who will be able to |
| Although there were reports a few years ago of | | | | estimate the cost of rebuilding based on the size |
| higher prices and limited availability for | | | | and location of the home. |
| homeowners insurance, the market has opened | | | | Think twice before calling your insurance company |
| up again, according to J. Robert Hunter, insurance | | | | with small claims for minor home damage. There |
| director for the Consumer Federation of America. | | | | have been reports of homeowners facing much |
| Premiums are expected to rise by no more than | | | | higher premiums after putting in only two claims. |
| the inflation rate this year, he said. | | | | So if it's a loss you can handle, take care of it |
| "The market remains a competitive one where | | | | yourself. |
| homeowners' insurance shoppers can be | | | | And, in that vein, consider a higher deductible. |
| selective," said Marshall McKnight, a spokesman | | | | "If you're not going to file a small claim, it's no use |
| for the state Department of Banking and | | | | paying a premium to be covered for an amount |
| Insurance. | | | | you wouldn't file for," Hunter said. |
| Here are several ways to save on home | | | | "Every dollar you give to an insurance company, |
| insurance: | | | | on average you only get back 60 cents," Hunter |
| Shop around. While many homeowners believe | | | | said. The rest goes to the insurance company's |
| that all insurance companies charge the same, | | | | profit and overhead. So if you can self-insure for |
| that's an expensive mistake. Use a service such | | | | smaller losses, you should. |
| as ours to compare rate quotes from different | | | | About 20 years ago, Hunter raised |the |
| companies if YOUR area. To get started, just use | | | | deductibles on both his car and |home policies, and |
| the form on the right. | | | | banked the money he saved on premiums in a |
| "You can go from one company to another and | | | | special account. Over the years, he used that |
| pay twice as much," said Hunter. | | | | account to pay for about $2,000 to $3,000 in |
| And don't just call an agent and expect him to do | | | | losses, mostly auto-related. He still has $4,000 - |
| the shopping for you, Hunter advised, because | | | | money that the insurance company |could have |
| agents don't represent all companies and might | | | | had. |
| not get you the best deal. | | | | "Nowadays, most insurance companies |
| Insure for "replacement cost" rather than "actual | | | | recommend a deductible of at least $500. If you |
| cash value." After all, if your belongings are | | | | can afford to raise your deductible to $1,000, you |
| destroyed, do you want the insurance company | | | | may save as much as 25 percent," according to |
| to send you enough to buy a new couch - or do | | | | the Insurance Information Institute, an industry |
| you want a $50 check for the actual value of | | | | group. |
| your 11-year-old couch? | | | | Make sure your home insurance policy includes |
| Make sure you are covered for at least 80 | | | | enough liability insurance, in case someone is |
| percent of the cost of replacing your home. If | | | | injured on your property. |
| you're not, it could hurt you even if your home | | | | Consider buying your home and auto insurance |
| does not need to be completely replaced. | | | | policies from the same insurer. Some companies |
| Let's say your home would cost $200,000 to | | | | will take 5 to 15 percent off your premium if you |
| replace and you're insured for only $100,000, half | | | | buy two or more policies from them. |
| of the replacement cost. If you have a $10,000 | | | | You can get discounts if you install smoke |
| loss, you would get only half of that amount, or | | | | detectors, deadbolt locks or burglar alarms. |
| $5,000. | | | | Keep your credit history clean. Insurance |
| Of course, knowing how much it would cost to | | | | companies are increasingly checking credit reports |
| replace your home is not always easy. For | | | | to set their rates. |