ARE THERE ANY OPTIONS TO OFFSET MORTGAGE COSTS TO SAVE SOME MONEY?

With the fluctuating housing market, it is harder and harder for homeowners to keep up with their mortgages. The need to save some extra money is becoming more and more prevalent everyday. One way homeowners can save some extra money to help with the mortgage is to save on their homeowners insurance.

Homeowners should evaluate their homeowners insurance policy at least once a year to make sure they still have the proper amount of coverage. Keeping and maintaining a home inventory will help you determine how much homeowners insurance coverage you need. Keep in mind that your possessions will more than likely depreciate over time, allowing you to decrease your coverage limits.

Increasing your deductible by just a few hundred dollars can make a significant difference to your premium. Most deductibles start at $250, therefore, if you raise your deductible from that to $1,000 you could save 25% on your homeowners premium.

Even though they seem ordinary, you may be able to get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material. Consumers often overlook these common features but they can lead to additional homeowners insurance savings.

Non-smokers usually get reduced rates on their homeowners insurance policy. If you were a smoker when you bought your house, but have subsequently quit, many insurers may lower your rates. Smoking accounts for over 20,000 residential fires in the U.S. a year, so insurers often charge lower premiums to smoke-free household.

The mortgage crisis is affecting all the homeowners across the country. However, until there is an end in sight, make sure you realize all the savings you can get on your homeowners insurance.

This question and answer only provides basic information and should be verified by reader. If you have a more specific question, I strongly encourage you to consult a qualified tax advisor or legal professional for advice. If you have a real estate related question, please email the question to gerry@northcentralre.com.