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