Homeowners insurance going through the roof

February 1, 2002

NBC 5's

DALLAS, Jan. 29 - Get ready to pay more for your homeowner's insurance.

Rates are soaring in the Metroplex, but NBC 5's has some

solutions on how to save.

This month, thousands of Texas homeowners will learn that their insurance

premiums are skyrocketing. The average homeowner will see their premium

almost double. But there some things you can do to lessen the blow...once

you get over the shock of your new payment.

Ken and Meredith Shapiro have already put a lot of money into their new home

in Dallas. First there was the down payment, then the cost of fixing up the

place. The latest punch to the pocketbook - their homeowners' insurance

premium is increasing almost 30 percent.

The Shapiros are not alone. Most Texans will pay at least two to three

hundred dollars more this year for homeowner's insurance. Insurers blame the

higher rates on an increase in expensive claims - especially mold related

claims. Allstate Insurance Company alone received more than 4,000 mold

claims last year.

In fact, the Shapiros had to file a mold claim last year after their

previous house became infested.

So how can you save money on homeowners insurance? Here are some tips for

the Insurance Information Institute.

Shop around for the best price, increase your deductible, get a discount by

buying home and auto insurance from the same company, and install security

features such as smoke detectors and a sprinkler system.

It would be a good idea for you to check with your agent to find out what

other discounts are available for you. Ask whether there is a discount for

being a long-term customer with the same company. And if you're about to buy

a new home, consider the increased cost of homeowners insurance when

factoring in your budget and how much you can spend.

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