Cut back on homeowners insurance?

Property values have dropped in our area. If you're thinking about cutting back on your homeowners insurance coverage, think again. 

If a disaster ever strikes, you might not have enough coverage to repair or rebuild.
 
Market values and insurance values are based on different assumptions and calculations. Because of that fact, the market value of your home can be much different from its insurance value.

The insurance value is based on the cost of rebuilding the house--it has nothing to do with what you paid for it. Even though housing prices have dropped, the costs of rebuilding have not.

If you want to save, think about increasing your deductible. For instance, increasing a deductible to $1,000 from $500 could lower your premium by twenty-five percent.

Check with your insurance agent about saving on your premium, but think hard about risking your coverage.