FRUGAL HINTS: Homeowner's Insurance Savings
With the way home prices have plummeted, the cost of replacing a home in the unfortunate event it is ever destroyed has also plummeted. I recently received my homeowner insurance renewal quote in the mail and realized my dwelling coverage was still being calculated at the same amount that it would have cost me to replace my home in 2005! I immediately called and asked them to recalculate that cost and there was a 12.5% decrease in the required coverage. The lady on the phone said that they only readjust those amounts when people call and request a recalculation. Insurance companies are probably raking in the money on all these home policies now seriously overvalued.
It wouldn't hurt to check and make sure your home as been revalued for insurance coverage.