[MooreBonds]

Quote:

Originally Posted by joesxm I currently have $289,000 coverage $500 deductible through Cambridge Mutual for $1100 per year. I have auto with GEICO and called them thinking getting both together would be cheaper. GEICO does not sell in CT but partners ith the Travelers and quoted me equivalent coverage for $850. I asked for the largest deductible ($5000) and they quoted $600. If a $5000 deductible on health insurance makes sense, same goes for homeowner's right? Are there other companies I should be looking into?

Regarding the $5k deductible, you simply have to crunch the numbers.

In your case, you can save about $250/year by taking on an additional $4,500 in deductibles. So, in other words, if you don't think you'll have a claim exceeding several thousand dollars over the course of the next ***18*** years, then you'll come out ahead by taking the higher deductible. (yes you could invest the $250/year in a fund, but I'm just using simple math here :P )

I don't know where you live, or what possible claims you might make, but you might want to take a careful, thoughtful look at what possible incidents might creep up, and ask yourself if you can make it for more than 18 years without having a large claim.

As for other companies, I don't have any direct experience with homeowners, but Allstate insures a large number of homes, and often gives auto/homeowners discounts if you have both policies with them.

I second the thought about the appraisal. Many insurers will try and make you think that you need coverage for the cost of your home, but your land will never lose value - so you don't need to insure the cost of the land and pay needless premiums! Just one thought on the other end of the spectrum: rebuilding costs have skyrocketed over the past 5 years, so you might want to make sure you have an approximate cost per square foot figured in to your policy such that you really could replace your house for that price.

One other tidbit: remember the difference between replacement value and the other phrase that refers to not depreciating it. One term will only replace the depreciated value of the belongings (i.e. didley squat), while the other will replace your belongings with new items.