Homeowners Insurance - It pays to shop!

By Don Stern

Real Estate Agent with Realty Executives South Louisiana

September 24, 2007 07:53 AM

Since hurricane Katrina, many people have seen their bill for homeowners insurance skyrocket. The high cost of homeowners insurance has become a significant part of the overall housing bill. It does pay to shop, however. The homeowner's insurance in my personal home had nearly doubled to about $3000 per year. The policy was with Allstate who also insured my three vehicles which earned me a discount. A little shopping resulted in a policy with better coverage for half that of what the discounted Allstate policy turned out to be.

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K C

Independent Leadership & Financial Fitness Consultant - Pleasant Grove, UT

Don, sometimes shopping works just fine, but often you get what you pay for. In other words, you can always get cheap insurance, but ask yourself how easy is it to get your claim paid? I have some ridiculously low car insurance, but recently found it difficult to get an accident covered. They're cheap for a reason!

Plus, if you work with the right insurance agent, you can get a great discount on all your insurance needs. I've often found Allstate to be pricey, but it depends on what you can qualify for as well. I personally would speak to the independent agency type, but make sure you don't buy a "no service" insurance plan, because you really will hate it if another Katrina hits. I hate those agents and companies that give you a great deal on the front end, but are impossible to talk to when you have a real life problem.

Sep 24, 2007 08:17 AM

Don Stern

Realty Executives South Louisiana - Baton Rouge, LA

Greater Baton Rouge Real Estate

Karl, you're absolutely correct and I considered that. We received quotes for both the auto/home with America First Insurance. America First is a member of the Liberty Mutual Group of insurance companies. They are A rated and a Fortune 500 company. That combined with the fact that the Louisiana Insurance Commission is a pretty tough regulatory agency convinced me that it was worth a try. I guess that time will tell.

Sep 24, 2007 08:28 AM

David Dee

RMX REALTY - Alhambra, CA

Real Estate - San Gabriel Valley (L.A.) & N. Orang

Don,

Sometimes it is worth the time shopping for the rates. I try to do that every now and then for myself too. Staying in one place does not always pay.

Dave

Oct 06, 2007 04:04 AM