Home prices in Southern California have dropped dramatically over the last couple years, but our homeowner's insurance hasn't. The average cost of homeowner's insurance has actually gone up. Why is this?
The price of homeowner's insurance is based on the cost to build or repair your home. Even though the construction industry has been hit hard, that doesn't mean the cost of rebuilding a home is decreasing or has decreased. Home prices are decreasing but homeowner's insurance costs are rising...
So how can you reduce your bill?
- Raise your deductible ( can dramatically decrease insurance costs, but will cost more when you have an emergency )
- Lower the amount of your insurance ( not usually recommended )
- Shop around. Online rates are sometimes cheaper than through local insurance agents.
- Always be weary of insurance companies offering extremely low prices. Low prices could mean bad customer service or no service at all.
- Be sure to check consumer websites and the department of insurance when searching for homeowner's insurance. insurance.ca.gov. Check out Home Ownership Accelerator for more information on reducing your balance.
Skylar Lewis - Your Local Real Estate Expert
Menifee Real Estate