To save on homeowner's insurance, it pays to shop around

April 11, 2011 9:50:27 AM PDT
"This is easy money for people," declares Robert Krughoff.

Krughoff, President of, isn't talking about some get-rich-quick scheme. But he says local homeowners could save lots of money each year by doing one simple thing.

"Most people in the Delaware Valley area can save $300, $500, $1000 by switching homeowners insurance," Krughoff says..

The Delaware Valley Checkbook compared rates for homeowners insurance for a typical homes in Philadelphia and for suburbs in Pennsylvania, New Jersey and Delaware.

They also asked policyholders and contractors to rate the service of different companies.

And they found that it definitely pays to shop around.

Take the rates quoted for a wood-frame house in the city.

"The price with Travelers was $911. It was more than twice that much with State Farm," Krughoff says. "And State Farm is the biggest homeowners insurer in the Delaware Valley area."

Which company is best really depends on where you live. But Liberty Mutual, Selective and Travelers were among the highest-rated companies.

"These are well-known insurance companies and they had very good rates compared to some of the biggest companies," Krughoff says.

And Krughoff says it's important to remember you can shop for new homeowners insurance at any time.You don't have to wait until your policy's expiring. If you switch, your old company will refund your money.

Krughoff advises, "Check them today and very likely you'll save hundreds of dollars and start saving right now. Because the company, even if you've already paid in advance, for six months, or a year or whatever, they'll give you back the money you've paid in advance.So the key message is you can start saving today. And if you're saving $500 a year, it's not just this year, it's year after year."

Some other ways to save on homeowners insurance include raising your deductible; making sure you're paying to cover the replacement value of your home, not the home and property value; and not making claims unless you'll have to pay more than the deductible. Multiple claims may result in your premium increasing.

To subscribe to and read the detailed findings of their homeowners insurance study, click here.