If you live in Pennsylvania you know that there have been some changes in Pennsylvania home owner insurance rates in the recent past. 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.

You can help to limit the affect of the rising prices by 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—it simply makes sense.

This is where replacement cost and actual cash value knowledge will come in very handy.  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. Knowing this will help you choose the type of policy that is best for your specific needs.

It’s 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 so you know how much you can save and really match the policy to your needs.