With the burst of the real estate bubble the home values have been dropping like a brick and that is no exception in Phoenix. Phoenix has actually been one of the worst hit cities as far dropping real estate prices are concerned. So how does that effect your home insurance Phoenix? One of the few silver linings in the real estate collapse and rough economy is that it should be lowering your home insurance (not a lot but a little bit). Let’s take a quick step back, one of the major components that a homeowner’s insurance policy covers is if they had to replace your home back to its original condition. Let’s use an example, if your house unfortunately burned down and you had to rebuild, your home insurance Phoenix policy would pay for the rebuilding. How do they know how much it would cost to rebuild your house and how much to insure it for? Each insurance company has a calculator more or less that comes up with a dollar amount that it would cost to rebuild your house based off different things like building costs, demographics, size of house, etc.  One important thing to note is that they are concerned on how much it would cost to rebuild the house which is different than what the house is valued at. As we know house valuations tend not to run in line with the cost to rebuild for many reasons. So if the insurance companies are not insuring the value of the home but the cost to rebuild it, how is the dropping home valuations helping me save money on my home insurance Phoenix? With the bursting of the real estate bubble it is dragging the economy thru mud right now and as a result prices have been coming down across the board. The cost of building homes is no exception and has also come down in price which should help you save some money. My suggestion would be to shop around and receive some online Phoenix home insurance quotes and see if you can’t find a better rate with a company that will give a reasonable cost to rebuild your home. Just remember to be reasonable, just because you bought your home for let’s say $100,000 which is well below market value and the cost to rebuild is $150,000 you need to insure it for $150,000.

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As a licensed insurance agent myself I am going against all conventional wisdom here in saying that you do not always get the best deal when you bundle your auto insurance Phoenix and home insurance Phoenix together. So many people believe that they will always get a better deal by bundling the two together with the same insurance company. The reason most agents say this is because they work for one insurance company so they want to keep your business so they tell you about the bundled discount or whatever their company calls it. The reality is that if you have your auto insurance with an insurance company and you decide to bring your home insurance to them also, most companies will give you a bundled discount. So you do receive a better rate for becoming a better customer by bringing more business to them. However it does not mean you are getting the best rate on your home insurance Phoenix. The other reality is that one insurance company may be cheaper for you on the auto insurance side and another company for your home insurance. You will forgo the “bundled” discount but at the end of the day you might be saving more money which is what really counts. If you decide you want to shop around and try to test this theory you can receive many online insurance quotes on the internet. Just to a search for online insurance quotes and you should see plenty of options. Make sure you choose an online independent insurance agency because they will represent multiple companies and will be able to give you multiple quotes. It is always a good idea to shop around once a year anyways so if you are getting to that point give it a shot and see if you split your auto and home insurance separately if you can save some money.

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With the real estate market in Phoenix being one of the worst hit markets in the country many people are picking up houses for a fraction of what they were costing a couple of years ago. Not only that, if you are a first time home buyer the government is giving a generous $8,000 tax credit to entice the first time home buyers to get off the sidelines and start buying. If you are a first time home buyer you are most likely nervous and confused about the whole process. The important thing to remember is that you need to use your team to help you with the buying process. If you have a good real estate agent they should recognize that this is your first home purchase and be guiding you in all the necessary steps to make sure the purchase goes smoothly. One area that many first time home buyers tend to forget about when they are ready to close is that they need home insurance Phoenix. If you are finding yourself in that situation the big question is, how do you find a competitive rate on your home insurance Phoenix when you are in a bind? There are two ways, the first is ask for referrals from your real estate agent or friends and family. The other way is to use the internet. Even if you choose to get a referral it is always a good idea to shop online also just to make sure you are receiving the most competitive rate. I would suggest searching for home insurance online quotes Phoenix and this should bring up plenty of options. Look for an online independent insurance agency because they represent multiple insurance companies. Usually within a matter of minutes you can have multiple home insurance online quotes and you can choose the cheapest one and stack it up versus the referrals price you received. If you are finding yourself in this situation, congratulations on the big purchase! Just remember to buy home insurance Phoenix and use the internet to make sure you do not overpay.