Across the nation,many homeowners are getting a shock in the mail:they are learning that their homeowners insurance costs are skyrocketing.In some parts of the country,consumers are even begin unexpectedly dropped by insurance providers and forced to find new coverage.

In the United States,the price tag of insuring homes rose 6 percent in 2001,and a similar increase is expected after 2002 is evaluated,says the insurance information institute(III),a non-profit organization supported by the property and casualty insrance business.

III atributes the increases to the mounting number of catastrophes,terroris threats,the high cost of home repairs,and the emergence of mold claims.

Hundreds of smaller disasters stemming from tropical storms.tornados,wildfires,hail,ice and snow are driving costs up.and III points out that the cost of  home repairs is rising by more than 7 percent a year—three times faster than the rate of inflation.

Luckily,there are some options homeowners can us to help keep insurance rates reasonable.IIIand better homes and gadens offer the following saving tips:

Tip #1

Decide what coverage is needed.The standard homeowners policy pays for a lot—but excluded or limits a lot,too.For instance,if your home is near water,flood insurance ma be a good idea.Some mortage lendes will even require it on homes within designated flood zones,at an additional policy.But rates change all the time–and so will your lifestyle and possessions.Even subtle changes can affect a homeowners policy,so it is important to review your policy and the value of your possessions regulary.If you sold that pair of diamnond earnings or other valuable for which you have a floater polic—additional coverage for items not covered by a stadrard homeowners policy—b sure youre not paying for the extra insurance.

Tip # 2

Raise your deductible.The deductible is the amount a homeowner  pays toward a loss before the insure starts to pay.Deductibled on homeowners policies typically start at $250.By increasing the deductible to $500,you could sav up to 12 percent.raise itto $1000,ad you could save up to 24 percent,says III.

Tip #3

Get all your coverage from one insurer.some companies that sell homeowners,auto,and libility coverae will cut 5 percent to 15 percent off your bill at least two policies are purchased through them.

Tip #4

Buy a newly constucted house.Becase anew homes elctrical,HVAC,plumbing systems,and overall structure are likely to be in better shape than those of an older house,insurers may offer a discount of as much as 15 percent below what is normally charged to cover an older home of similar value.Buying the “right” type of construction can also equate to savings.For example,brick homes can earn a discount on the East Coast because theyre less susceptibe to wind and hurricane damage.LIKEWISE,frame homes are better able to Withsand earthquake damage possible in Westen states.

Tip # 5

Disaster-proof your property.Make your home more resistat to damages–save in insurance costs—by adding storm shutters and shatterproof glass,or by reinforcing your roof.Consumers living in an older home should also consider modernizing heating,plumbing,and electrical systems to reduce the risks of water and fire damage.

Tip # 6

Create a “home safe home”.communitiies with neighborhood watch programs are often rewarded with lower lower rates.some insurance companies also offer a discount of at least 5 percent for installing security measures like smoke detectors,burglar alarms,and dead-bolt locks,and many will offer a discount if you install a sprinkler system and a  fire and burglar alarm that ring at police,fire,or other monitoring stations.

Tip # 7

Quitting smoking isnt just good for your health—it is good for homeowners insurance premiums,too.Acoording to better homes and gardens,smoking accounts for more than 24,ooo residential fires a year.Some insurance offer to reduce premiums ifno one in the house smokes.

Tip # 8

Be a loyal customer.Someinsurers will trim their rates if a consumer has been with them for a certain number of years—cometimes up to 10 percent if youve had your policy for more than six years.But dont let loyalty blind you to a better deal elsewhere.Be sure to regulary compare prices agains other companies.

Tip # 9

Inquire about any potential discounts.For example,some insurers offer lower rates to those 55 ad older.

Tip # 10

Consider group coverage.some alumni fraternal,and business organizations may offer group coverage thas cheaper than your individal coverage.