Annual Insurance Premiums

I was really excited when I opened my mail the other day and found my statements from state farm for my annual Earthquake Insurance and Homeowners policy renewals.

Why was I excited?

Because my earthquake insurance premium just went down $70 a year… and my homeowners dropped $1. Since SCB and I have been trying to lower our annual bills, this is just an unexpected surprise. When I called the Insurance Company, they just said all their earthquake policies were lowered across the board so it wasn’t anything we did on our end to save the $70 a year.

Earthquake Insurance Breakdown: $187.00

• Building Property: $25k with a $3750 deductible
• Personal Property: $25k with a $750 deductible
• Loss of Use: $10k (no deductible)
• Loss Assessment: $25k with a $3750 deductible.

Homeowners Insurance Breakdown: $321.00

• Building Property: $26,200 with a $500 deductible  
• Personal Property: $26,200 with a $500 deductible  
• Loss of Use: Actual Loss Sustained with a $500 deductible  
• Loss Assessment: $10k with a $500 deductible  

*We get a $10 discount for Home Alert, $56 discount for having our Auto Insurance with them, $41 discount for being claim free *

As most of you know, South County Boy and I treat all of our annual and semiannual bills like monthly bills and put it in a separate savings account at ING so when we don’t get sticker shock when the bills come in May, September, and November.  Here’s the price break down:

Earthquake- $187 a year ($15.58 a month)
Homeowners- $321 a year ($26.75 a month)
SCB’s Car- $155.67 every 6 months ($25.95 a month)
SCG’s Car- $362.51 every 6 months ($60.42 a month)

So now we only need to put aside $129 a month to cover everything instead of the $135 we were saving (which used to be $143.00 earlier this year).

And… since we have been tossing more money than we needed to all year long into this account, we have $117.94 EXTRA sitting there that we can divert to the ROTH IRA to help cover the shortfall we are experiencing!

This also means that we can bump up our monthly Roth IRA contributions by $6 to $167.90…

Right now we have contributed $2,902.00 to the Roth… If we add the $1,125 from my extra paycheck that we will drop in the Roth in December when I get it… and our monthly amount of $167.90… are only short  $33.38 a month from maxing out the Roth IRA this year—which seems so much easier to find then before.

WOOT