Home Insurance Guide

Lately, life has been tough on homeowners as they watch their home values slip, fall, or tank and as a homeowner myself, I can say first hand that it’s a little disconcerting. Well, there is one home insurance related positive note that you can take advantage of and that’s the fact that you can reduce how much homeowners insurance you’re paying for since the value of your home has fallen. If your home was worth $500,000 a year ago, you were insuring it for approximately that much or a little less (depending on the rules of your insurance company and your lender). If your home is now worth slightly less than that, say $450,000 now, you can talk to your insurance agent and get your insurance reduced because your home is no longer worth $500,000 - the original amount. While it hurts to have to admit the loss in value, at least you can save a few dollars in your pocket.

If you are insuring your home based on replacement value, this little math won’t help you as much but every little bit helps!