(KTSF by Susannah Lee)
150,000 Bay Area homeowners will see home insurance rate reduced by $100 a year starting this December .
The 9.3% drop in homeowners insurance was announced today by Insurance Commissioner Dave Jones and Paula Downey, CEO of the AAA Northern California, Nevada and Utah Insurance Exchange.
“Every homeowner will have their rates adjusted, so the rate reduction will apply to all California policyholders,” says Downey, who attributes the rate reduction to absence of significant catastrophies and major losses in populated areas in California.
According to the California Department of Insurance, approximately 150,000 Bay Area and 102,000 Sacramento homeowners will save an average of $100 each year.
“This is like a gift under the current tough economy” says Walnut Creek homeowner Peri Chen.
While Commissioner Dave Jones welcomes the rate reduction, he points out that many homes are underinsured, and homeowners do not know the up-to-date value for replacing their homes.
“The replacement cost of your home is different from the market value of your home. They can be dramatically different numbers, so it is important to talk to your agent or broker or your insurer. Have them do the estimate for you,” explains Jones.
He also recommends doing research on coverage details, talk to others to learn about their experience with insurance companies, and never make the decision solely upon rates.
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