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Overpaying for Home Insurance

Odds are the premium on your homeowner’s insurance is too high. In a recent survey by insurance provider ACE Private Risk Services, 78 percent of independent insurance agents said homeowners are overpaying for their house insurance.

What to do: Hike your deductible. By raising the amount you pay in the event of a mishap, you let the insurer off the hook for part of the cost and, in turn, lower your premium. “If a home is insured for $1 million and the owner who pays a $500 deductible raises that to $2,500, they can save $900 a year in premium savings,” said David Spencer, vice president of ACE private risk services.

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