Can percentage-based home insurance deductibles gauge me?

By not reading the fine print, consumers don't know that they know have percentage-based home insurance deductibles to take care of. Many home insurance companies are now changing the way they set homeowners insurance deductibles for catastrophic events including earthquakes, hail storms, windstorms and hurricanes.

Loretta Worters, vice president of communications for the III, says, "The practice is becoming more and more prevalent, particularly in coastal areas. Insurance companies are using it simply as a way of balancing costs.'

Phil Supple, a spokesman for State Farm, says, "When Hurricane Andrew came through, that was a big wake-up call. We want to be sure we are able to pay claims for all of our policyholders.'

Sue Honeyman, a spokeswoman for The Hartford, says, "In some areas, particularly the shores, we do offer a percentage deductible for windstorms. It allows The Hartford to write insurance for more homes at a better price.'

Event though many home insurance consumers disagree with the percentage-based home insurance deductibles, that doesn't mean that this is a pointless waste of money. They charge the money for a reason, and this reason is necessary both for the companies and the consumers.

Worters of III says, "They [insurance companies] see it as a way to get premiums back in line. Not all companies do it, but an increasing number have. They see it as a better way of having additional funds to pay claims.'

Honeyman says, "If you go to a percentage deduction, you get a credit on your account, so you end up paying less for insurance.'

Supple says, "We have people who are concerned about the availability of insurance. Hurricane deductibles allow us to make insurance available. We have billions of dollars of exposure in Louisiana. If a mega-storm like Hurricane Andrew came in, it could cost billions of dollars. Every homeowner wants to see their claim paid. If you are going to live in harm's way, we need for you to take a certain amount of responsibility. We are doing this just in areas where we feel the risk is great.'

Here are some tips to save money on your life insurance, if you are looking specifically for money-saving insurance:

• Improve your health

• Try consulting a financial advisor

• Contact your life insurance company and talk to them about how you can save more money

• Try shopping around