Save Money On Insurance But Do Not Skimp On Homeowners Property Insurance

Saving money is on the minds of just about everyone in 2009. Especially as we see the cost of gasoline on the rise as summer hits.

One place you may consider cutting back is your homeowner property insurance. This is especially true, and it may even seem to make sense since home values and property tax assessments have come down. But, you need to be careful at saving money on insurance in this way as you could be in real trouble if you need to make a claim. Here's why:

Property values have declined steadily over the past few years, but what has not declined is the cost to build new homes and rebuild existing homes.

Existing homes are often more expensive to rebuild when comparing to the cost of building a comparable new home. Why the difference?

• Working on an existing home includes demolition


• Working around existing homes and landscaping


• Using heavy equipment on the spot for one job versus a package deal as with a new home subdivision


• Reconstructing within the parameters of upgraded building codes.

With all this said, you should probably keep your homeowner policy coverage where it is and perhaps even have it evaluated as to whether you need to increase coverage if it has been awhile. Your insurance agent should be able to help you figure out whether you need to make any changes in your coverage.