HOMEOWNERS WITH HIGHER CEILINGS

           Homeowners might want to stifle the urge to make small claims that could lead to higher premiums. It is hardly unusual for companies issuing homeowners insurance policies to raise policyholders’ rates by up to ten percent annually in the three to five years following a claim. To avert this kind of hike, homeowners may be better off raising the deductible on their homeowners policies and reaping the consequent savings on premiums. By boosting their deductible and absorbing the cost of smaller losses, policyholders may fare better in the long run, especially if they bank what they save on premium costs in an “emergency fund” to help defray the cost of the higher deductible  in the event of a major loss. 

NOTE: To save on homeowners insurance premiums, carefully consider what you could afford to absorb in the event of a major catastrophe or a series of minor losses, and set that amount as your deductible.