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HOMEOWNERS PREMIUMS
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What Percentage of a Total Household Budget Goes to Insurance? |
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How to Hold Down the Cost of Your Homeowners Insurance |
What Percentage of a Total Household Budget Goes Toward Insurance?
According to the Insurance Information Institute, premiums for all types of insurance account for 6.5% of the total household budget. Percentage of household costs break down as follows: (Latest figures available - 1998)
| Housing | 32.2% |
| Transportation | 16.5% |
| Food | 13.5% |
| Retirement | 8.4% |
| Clothing | 4.7% |
| All Insurance | 6.5% |
| Entertainment | 4.9% |
| Health Care | 2.8% |
| Other | 10.4% |
Specifically, Insurance costs break down as follows:
| Auto Insurance | 2.0% |
| Health Insurance | 2.6% |
| Life Insurance | 1.1% |
| Homeowners Insurance | 0.7% |
| Other | 0.1% |
How to Hold Down the Cost of Your Homeowners Insurance
- Consider increasing your deductibles -- a higher deductible can often reduce the cost of your insurance.
- Install fire and burglar alarms and/or smoke detectors in your home -- discounts are available in most states.
- Insure your home for the right amount -- it's important to know the proper value of your home so you don't underinsure. If you're not carrying enough insurance and you have a loss, you stand to lose more money than you will ever save through a lower premium.
- Your agent can provide you with an estimate of the amount of insurance needed to replace your home under current construction costs.
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