There has been a noticeable change in homeowner rates in Pennsylvania. The natural disasters of recent years have caused some shortages in the necessary supplies and materials to repair homes. The homeowner rates in Pennsylvania are affected because there is a higher demand for these materials and so the rates have increased. The homeowner policy was at one time one of the most affordable insurance policies on the market. In fact, it may have been under priced.

The increase in rates can be offset if you use the concept of self-insuring. Self insuring is nothing more than assuming more of the risk on your homeowner policy by taking a higher deductible. The lower deductibles no longer justify the higher premiums. There are a lot fewer claims submitted on a homeowner policy as compared to the auto policy. You will save thousands of dollars over the life of your homeowner policy by using a higher deductible.

When shopping for homeowner policy rates be sure and understand the difference between replacement cost and actual cash value. The insurance companies settle their claims on an actual cash value or replacement cost basis. The actual cash value settlement will estimate the replacement cost and them subtract any depreciation because of age or use. The actual cash value policies are generally written on older homes that depreciate in market value. The replacement cost policy will repair or replace damage with like kind and quality material without depreciation. The replacement cost policy is more appropriate for the newer home.

Its a good idea when shopping for homeowner insurance rates to combine your auto policy in the quote. The multi-policy discounts are significant and the multi-policy applicants are often more liberally underwritten. There are excellent discounts for burglar and fire alarm systems that have a direct connection to the police department and local fire station. Use all available discounts and be sure and compare rates with different deductibles.