You received your Homeowners renewal in the mail. Guess what? The premium is up. Up big!
It’s ridiculous. Every year it goes up. It NEVER goes down.
You have a few options to reduce your rate. The two most common ways are to increase your deductible and possibly decrease your Coverage A for your Dwelling. In order to decrease your Coverage A, your agent must provide proof to the Underwriter that the coverage can be reduced.
Can you save money by decreasing your Coverage B- Other Structures?
First, you need to know what is covered under Coverage B- Other Structures.
Here are a few examples;
- Detached Garage
- Swimming Pool
- Swing Set
- Woman Cave (Yes they exist and are awesome!)
You get the idea. Any structure that is not connected to your house is covered under Coverage B- Other Structures.
Most insurance polices provide 10% of your Coverage A for your Coverage B. So if your Dwelling is insured for $200,000 then you will get $20,000 in coverage for your Other Structures. Some companies do it differently but most insurers set up their Homeowners policies in this format.
So, can you save money by decreasing your coverage for Other Structures?
No. Coverage for Other Structures is now an included coverage. Meaning, you are given 10% of your Coverage A for your Other Strutures. It is included in the premium amount. So, for the majority of homeowners insurance policyholders, there is no opportunity to save money by decreasing your Coverage B-Other Structures.
You can increase it to as high as you want which will increase the rate. This is common when people build detached garages or install a swimming pool. Be sure to contact your agent if you build anything on your property. You do not want to be Under-Insured.
My name is Keith Laskey. My goal is to educate the everyday consumer and to help them make intelligent decisions with their insurance policies. Please contact me at my office, 610-948-4830 or Email Me for any insurance related questions or concerns. You can also visit the Ron Black Agency website or like us on Facebook! Thank you for stopping by, have a great day!