Look for "replacement cost" homeowner's insurance, if
available. Such a policy will help you guard against
inflation. Based on depreciation of the property and
index of inflation, insurers often assess the amount of
replacement cost. However, there are other factors. Some
companies set limits on total amount covered instead of
total replacement. Ask in detail about such homeowner’s
Calculate the amount of coverage you need to cover your
home and its contents. Don’t consider the value of land
when calculating the value of your homeowner's
insurance, as it is not covered by your homeowner's
policy. Take photographs of your belongings, each room
of your home and its exterior and store these in a safe
deposit box in case you ever need prove values when
using your homeowner's insurance.
Ask your friends, family and business associates about
their insurance. Look in the Yellow Pages and contact
insurance agents. Request quotes. Go online, visit Web
sites of different insurance companies and request
quotes. Check consumer guides and read reviews from
customers of different insurance companies.
Find out if companies offer any discounts on homeowner’s
insurance. The types and extent of discounts vary. Age
of the homeowner, people living in the home, employment
status and locality can determine the amount and type of
Opt for combo homeowner's insurance policies if
available. All real property such as cars, boats and
computers can be covered under more than one kind of
policy. Ask your company if it provides such
combinations. Your premium will be lower.
Consider opting for a premium within your budget of
monthly disposable income.
Ask about the deductibles under the homeowner’s policy.
(Deductibles are the amount you pay toward a loss before
your insurance company starts to pay a claim).
Typically, the higher your deductible, the more money
you can save on your homeowner’s insurance premiums.
Amounts of $250 to $300 is the standard deductible.
Offer to pay a higher deductible if it can help you
lower your insurance premium.