You know how bloated the cost of living in Connecticut is, especially with homeowner's insurance. According to the National Association of Insurance Commissioners' 2007 report, Connecticuters paid an average premium of $929—10th highest in the country. So let's look at how you can save big on your Connecticut house insurance rates. Give us 30 minutes and we'll try to save you hundreds.

The Basics of Connecticut House Insurance
The most popular policy today is the HO-3 and covers all perils except those that are named. Here are the basic components:

  • Coverage A- Dwelling
    This will pay to rebuild/repair your home in the event of a peril such as fire, tornado, etc. If you have a mortgage, you will probably have to cover at least 80% of the home's value.
  • Coverage B- Other Structures
    This covers unattached property like sheds and garages and is typically 10% of your home's coverage amount.
  • Coverage C- Personal Property (PP)
    This repairs or replaces your personal belongings and coverage is usually 50% of your home's amount of coverage.
  • Coverage D- Additional Living Expenses
    This pays for alternate living arrangements should your home become unlivable because of a peril covered in Coverage A. It's usually about 20% of the home's coverage amount.
  • Coverage E- Comprehensive Personal Liability
    This protects you in the event someone is injured on your property. It typically covers law suits and damages and usually starts at $100,000 per accident.
  • Coverage F- Medical Expense
    Pays for medical expenses per person, per accident when someone is injured on your premises.

Connecticut House Insurance Questions to Consider
Before you decide on a policy to buy, take a few minutes to ask yourself some basic questions. This will get you thinking about your specific needs.

What is my house's replacement value?
This is the cost to replace/rebuild your home using today's construction costs usually expressed as a price per square foot. It's not the market value and does not include your property and foundation.

What is the difference between "actual cash value" (ACV) and "replacement cost"?
ACV takes depreciation (age, wear, tear) into consideration when calculating for a loss. For example, your home is struck by lightning and destroys your $3,000 Samsung plasma TV. Because you bought the TV four years ago, it may now only be worth $1,500 give or take—its depreciated value. Replacement cost—usually purchased at a slightly higher premium of 2% to 15% of base premium—replaces, repairs, or rebuilds (in the case of houses) using the same or similar materials without considering depreciation.

Will a standard HO-3 policy cover flood damage?
No. This is always a separate policy backed by the National Flood Insurance Program and can be purchased through a licensed agent. The average premium according to FEMA is $500. Keep in mind it takes 30 days from time of purchase for the insurance to be activated.

Hurricanes and Connecticut House Insurance Rates
Many insurers in Connecticut now have separate deductibles—though not separate policies—for windstorms and hurricanes, particularly for those residents on the coast. Deductibles are expressed as a flat dollar amount (e.g. $5,000) or as a percentage of the dwelling's coverage. So a 2% deductible on $300,000 in dwelling coverage would equal a $6,000 deductible. Connecticut limits the amount to 5%.

Saving Big on Connecticut House Insurance Rates
You can save up to 50% just by asking an agent about all the available discounts they offer. Here are a few you may qualify for:

  • Discounts for protective devices like dead-bolt locks, smoke detectors, fire extinguishers, automatic sprinklers, burglar/fire alarms, and new plumbing/wiring.
  • Multi-line (house, auto, life) discount
  • Senior (55+) discount
  • Non-smoker discount
  • Paying in advance vs. making monthly or bi-monthly payments.
  • Payroll deducted payments.
  • Military discount
  • New house discount; the newer the house the lower the risk.
  • Claims free discount
  • Wind storm/hurricane mitigation features discount.
  • Credit Score- for insurers, good credit scores equal better risks.

And finally the biggest way to save on your Connecticut house insurance rates is to comparison shop with LocalInsurance. LocalInsurance searches agents from your area and gives you the opportunity to select the rate and policy that best fits your needs. It's free and can be done in about 30 minutes.

If you are interested in learning more about Connecticut home insurance, there are a number of resources that are offered by the state. Connecticut has a Department of Insurance which can help ensure that you have the appropriate coverage for your home and provide you with useful information when selecting a homeowners insurance policy.