Will homeowner’s insurance rates hit a new record in 2012?

According to recent reports, the weather related claims throughout the world have taken a toll on the insurance companies billions of dollars in 2011. Massachusetts experienced its new set of destructive weather phenomenon. People all over the United States have been subject to a number of storms that resulted in ice dams on their homes and traffic accidents on roads. Not only storms, tornadoes too, ripped through various states along hurricane Irene that blew in late August causing widespread damage to the flood prone areas. Homeowners not only require calculating a mortgage loan amount through a home mortgage calculator but they also need to have their homeowner’s insurance coverage so that they can be protected from unnecessary expenses caused due to the natural disasters.

As 2011 had been a year of  natural disasters like hail, winds and floods, the homeowners are wary about the possibility of the homeowner’s insurance premiums to hit a record high level in 2012. With the spiraling costs of commodities in the US and the unemployment rate stubbornly hovering at the close-to-doubHomeowners Insurancele-digit rate, the prospective homeowners are worried about the ways in which they can make ends meet in this tough economic state. The insurance industries have already been going through some record losses for the last few years and  in order to lower their risk, most are finding the need to increase the insurance premiums on homeowner’s insurance policies. Records reveal that the average annual costs for the homeowner’s insurance premiums were $797 in 2008 and this figure increased to $809 in the year 2012. The Insurance Information Institute also anticipates that the average premium rate throughout 2012 will be around $910.

*Keeping the homeowner’s insurance rates affordable – Some steps*

With all the predictions going against the prospective homeowners, most of them are desperately looking for ways in which they can lower the homeowner’s insurance premium costs. Just as there are ways in which you can lower your auto insurance and health insurance premiums, you can also do the same in this case. Here are some ways you should look for.

– *Shop around*: The first and foremost step that you need to take is to shop around before choosing a particular insurance policy. Though most mortgage lenders provide you with such a policy, you should make sure that you take the policy that offers the most adequate coverage at the most desireable cost.
– *Raise your deductible*: Every property policy has a deductible which is the amount that you have to pay out of pocket when you file a claim. If you agree to pay a big amount when you file a claim, it is most likely that the insurer will lower the insurance premiums – this will help make it more affordable for you.
– *Combine policies for a rebate*: You must have taken out other insurance policies from different insurers. But if you can take out this policy too from the same insurer, you may get a multiple-policy discount and this can help you save your dollars in the long run.

Therefore, when you’re about to insure your home against all the dangers by getting yourself a homeowner’s insurance policy, you should consider the big picture. Make sure you take all the steps to snag the best policy even in such unfavorable market conditions.

 

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