Your home is likely your most valuable asset"make sure you protect it. While insurance agents will help determine the kind of coverage you can buy, it is ultimately your responsibility to know what the policy covers.
1. Review your policies annually. A walk-through of your coverage needs with your agent may identify other coverages (i.e., jewelry, artwork, etc.) that you need, as well as ways to save on premiums such as bundling auto and home insurance coverage together with one provider or requesting higher deductibles to help contain your costs.
2. Identify risks you face that are not covered by your homeowners policy. Disasters such as floods and earthquakes need a separate policy to protect your home if tragedy strikes.
3. Understand how much coverage you have. Many homeowners believe their insurance policy will replace their damaged or destroyed property regardless of the amount of damage incurred. Remember, it is not your home's market value that is covered, but rather its replacement cost. Home additions and major kitchen or bath remodeling projects can add significant value to your home, which may not be covered by your current policy. It is important to that your coverage is sufficient, based on your home's replacement cost.
4. Do your homework when shopping for price. Get quotes from different carriers. Since rates can vary, make sure you compare coverage on an apples-to-apples basis so you realize when a lower price really represents less coverage. Consider higher deductibles to help contain your costs or ask if discounts are available for installed safety and security devices such as smoke detectors and alarms....
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